Target

Exercise sound business and financial management principles in healthcare settings through process mapping and strategic planning.

Instructions

Write a 4-to-6 page paper in which you discuss the value of ratio analysis in decision making for health care organizations. In your paper, discuss the meaning of Ratio Analysis in healthcare, following the three steps (I, II, and III) below.

STEP I: Pick one (1) ratio from EACH Major Group from the financial statements. Liquidity Ratios (Current, Days Cash-On-Hand, Quick) Profitability Ratios (ROE, ROA, Total Margin, Operating Margin) Leverage/Capital Structure Ratios (Debt, Equity, Debt to Equity) Non-financial Ratios/Operating Indicators (Occupancy rate, Payer Mix, Average Length of Stay (ALOS), Expense per Discharge, Full Time Equivalents (FTE) per Bed, HMO Penetration)

STEP II: For each ratio you selected, respond to the following three topics. 1. What is the meaning of each Ratio? 2. Evaluate the meaning of the Ratio regarding the financial health of a health care organization. Show the calculations. 3. Explain the factors that affect the results.

You can utilize the sample Help4UHMO Organization Financial Statements (located under Week 6 Content) or a real-life health care organization to evaluate by researching their financial statements. Show relevant calculations.

STEP II: Format your paper consistent with APA guidelines. Provide a minimum of two (2) cited sources in your paper. Properly cite in APA format.