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St. John's Hospital has the following annual financial data and operational metrics: 300 95,645 15.8% S . Number of beds Total Inpatient Admissions 15,500 Total
St. John's Hospital has the following annual financial data and operational metrics: 300 95,645 15.8% S . Number of beds Total Inpatient Admissions 15,500 Total Outpatient Visits .Outpatient Mix .Medicare Payment Percentage (Revenues) 31.0% Average Length of Stay (ALOS) 4.6 days .Net price per discharge $11,123 . Cost per discharge 8,343 .Total Inpatient Revenues $120,820,070 .Net Patient Service Revenues 78,533,045 .Targeted Capital Structure: S 40% debt financing and 60% equity financing Cost of equity estimate 18% Cost of tax-exempt debt estimate 8% Tax Rate 22% .Estimated Billings (assuming 360 days per year): 20% of receivables paid in 30 days 50% of receivables paid in 60 days 30% of receivables paid in 90 days O 1. Based on the financial data and operational metrics given above on St. John's Hospital, calculated A-J above. (Note: if you show your calculations, you can possibly receive partial credit. However, if you just enter the final answer and it is incorrect then the whole problem is wrong.) 2. After completing the calculations, discuss the hospital's financial position from your viewpoint as a manager. Examples: What areas should the hospital work on or what are they doing well, etc.? What do the effective (after-tax) cost of debt and the corporate cost of capital mean to the hospital? Also, what are some suggestions for correcting any problem areas
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