St. Johns Hospital has the following annual financial data and operational metrics:

Number of beds	300
Total Inpatient Admissions	15,500
Total Outpatient Visits	95,645
Outpatient Mix	15.8%
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:

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

Calculate the following:

A. What is St. Johns average collection period?

B. What is the hospitals current receivables balances?

C. What is the hospitals profit per discharge?

D. Using the Outpatient Mix, what are the hospitals Total Outpatient and Total Inpatient Revenues?

E. What are the hospitals total revenues from Medicare Patients?

F. What are the total number of inpatient days?

G. What are the total number of available bed days in a year, assuming 365 days in a year?

H. What is the hospitals Occupancy Rate?

I. What is the after-tax (effective) cost of debt if the tax rate is 25%? If the tax rate is 35%? (Note: The interest rate or the before-tax cost/BT on the hospital debt is set at 12%.)

J. What is St Johns Hospitals Corporate Cost of Capital (CCC)?

Requirement:

1. Based on the financial data and operational metrics given above on St. Johns 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 hospitals 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?

Requirement 2 asks that you discuss and summarize the hospital's financial position. You should use information learned from the textbook, (Reiter K. L, Song P. H. (2018). Gapenski's Fundamentals of Healthcare Finance, (3rd ed.), Chicago, IL: Health Administration Press ) CH 7&8, and research gathered online to complete your discussion.

Use relevant sources (journal articles, books, credible websites) where applicable, or note that it is based on your opinion.

References your sources.