Using Table 14.1 and 14.2 in chapter 14 of the textbook, how will you rate the hospital overall financial health? Pay attention mostly to liquidity, efficiency and solvency ratio

TABLE 14-1 Local Community Hospital Statement of Financial Position As of December 31, 2019 and 2018 (in 000s) 2019 2018 2019 2018 Assets Liabilities and Net Assets Liabilities Current Liabilities Current Assets Cash 4.5% $ 30,000 2.1% $ 14,000 4.8% 32,000 10.0% 66,000 3.7% $ 23,000 Wages payable 4.2% 26,000 Accounts payable 11.0% 68,000 Unearned revenue 14.2% 88,000 Total current liabilities 1.9% $ 12,000 9.3% 58,000 5.2% 32,000 7.9% 52,000 5.8% Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets 38,000 16.1% 106,000 17.9% $ 118,000 16.4% $ 102,000 2.1% 14,000 1.9% 12,000 35.5% $ 234,000 34.99 $ 217,000 46.7% $ 308,000 14.8% $ 98,000 Long-Term Assets Buildings and equipment Less accumulated depreciation Net buildings and equipment Land 13.3% 88,000 31.5% 208,000 Long-Term Liabilities 41.29 $ 256,000 Mortgage payable 11.09 68,000 Bond payable 30.3% $ 188,000 Other 17.496 108,000 Total long-term liabilities 17.4% 108,000 17.4% $ 108,000 33.5% 208,000 12.6% 78,000 63.4% $ 394,000 33.3% $ 220,000 16.4% 108,000 13.0% 86,000 59.4% $ 392,000 Goodwill 14.8% 98,000 Total long-term assets 64.5% $ 426,000 65.1% $ 404,000 Total liabilities 77.3% $ 510,000 79.9% $ 496,000 Net Assets Without donor restrictions 10.9% $ 72,000 11.8% 78,000 With donor restrictions Total net assets 100.0% $ 621,000 Total liabilities and net assets 7.6% $ 47,000 12.6% 78,000 20.1% $ 125,000 100.0% $ 621,000 22.7% $ 150,000 Total assets 100.0% $ 660,000 100.0% $660,000 TABLE 14-2 Local Community Hospital Statement of Operations For the Years Ending December 31, 2019, and 2018 (in 000s) 2019 2018 Revenues Patient services revenue (net of contractual allowances) 76.1% $ 188,000 74.6% $ 167,000 Provision for bad debt -2.4% (6,000) -1.8% (4,000) 76.1% $ 188,000 74.6% $ 167,000 Net patient services revenue Premium revenue 15.0% 37,000 14.7% 33,000 8.9% 22,000 10.7% 24,000 Other operating revenue Total revenues from operations 100.0% $ 247,000 100.0% $ 224,000 Expenses Salaries, benefits, and other compensation Medical supplies and drugs 33.6% $ 83,000 33.9% $ 76,000 39.3% 97,000 40.2% 90,000 Insurance 9.3% 23,000 9.4% 21,000 Depreciation 11.3% 28,000 10.7% 24,000 Interest 4.0% 10,000 4.9% 11,000 97.6% 241,000 99.1% $ 222,000 Total expenses from operations Excess of revenues over expenses 2.4% $ 6,000 0.9% $ 2,000 Contributions without donor restrictions 12.6% 31,000 7.6% 17,000 Transfers to parent -4.9% (12,000) -4.5% (10,000) Increase/(decrease) in net assets without donor restrictions 10.1% $ 25,000 4.0% $ 9,000 TABLE 14-1 Local Community Hospital Statement of Financial Position As of December 31, 2019 and 2018 (in 000s) 2019 2018 2019 2018 Assets Liabilities and Net Assets Liabilities Current Liabilities Current Assets Cash 4.5% $ 30,000 2.1% $ 14,000 4.8% 32,000 10.0% 66,000 3.7% $ 23,000 Wages payable 4.2% 26,000 Accounts payable 11.0% 68,000 Unearned revenue 14.2% 88,000 Total current liabilities 1.9% $ 12,000 9.3% 58,000 5.2% 32,000 7.9% 52,000 5.8% Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets 38,000 16.1% 106,000 17.9% $ 118,000 16.4% $ 102,000 2.1% 14,000 1.9% 12,000 35.5% $ 234,000 34.99 $ 217,000 46.7% $ 308,000 14.8% $ 98,000 Long-Term Assets Buildings and equipment Less accumulated depreciation Net buildings and equipment Land 13.3% 88,000 31.5% 208,000 Long-Term Liabilities 41.29 $ 256,000 Mortgage payable 11.09 68,000 Bond payable 30.3% $ 188,000 Other 17.496 108,000 Total long-term liabilities 17.4% 108,000 17.4% $ 108,000 33.5% 208,000 12.6% 78,000 63.4% $ 394,000 33.3% $ 220,000 16.4% 108,000 13.0% 86,000 59.4% $ 392,000 Goodwill 14.8% 98,000 Total long-term assets 64.5% $ 426,000 65.1% $ 404,000 Total liabilities 77.3% $ 510,000 79.9% $ 496,000 Net Assets Without donor restrictions 10.9% $ 72,000 11.8% 78,000 With donor restrictions Total net assets 100.0% $ 621,000 Total liabilities and net assets 7.6% $ 47,000 12.6% 78,000 20.1% $ 125,000 100.0% $ 621,000 22.7% $ 150,000 Total assets 100.0% $ 660,000 100.0% $660,000 TABLE 14-2 Local Community Hospital Statement of Operations For the Years Ending December 31, 2019, and 2018 (in 000s) 2019 2018 Revenues Patient services revenue (net of contractual allowances) 76.1% $ 188,000 74.6% $ 167,000 Provision for bad debt -2.4% (6,000) -1.8% (4,000) 76.1% $ 188,000 74.6% $ 167,000 Net patient services revenue Premium revenue 15.0% 37,000 14.7% 33,000 8.9% 22,000 10.7% 24,000 Other operating revenue Total revenues from operations 100.0% $ 247,000 100.0% $ 224,000 Expenses Salaries, benefits, and other compensation Medical supplies and drugs 33.6% $ 83,000 33.9% $ 76,000 39.3% 97,000 40.2% 90,000 Insurance 9.3% 23,000 9.4% 21,000 Depreciation 11.3% 28,000 10.7% 24,000 Interest 4.0% 10,000 4.9% 11,000 97.6% 241,000 99.1% $ 222,000 Total expenses from operations Excess of revenues over expenses 2.4% $ 6,000 0.9% $ 2,000 Contributions without donor restrictions 12.6% 31,000 7.6% 17,000 Transfers to parent -4.9% (12,000) -4.5% (10,000) Increase/(decrease) in net assets without donor restrictions 10.1% $ 25,000 4.0% $ 9,000