Using the Finance Indicator Review Sheet

460 CHAPTER 12 Financial and Operating Ratios as Performangry Exhibl 19-I Light Basic Ration Used in Health Care Liquidity Rations 1. Carrent Ratio Current Auch LIQUIDITY RATIOS Current Liabilities Liquidity rations reflect the ability of the news measure shortterm williciency # Quick Ratio nization to "he liquid': in other words Cash and Cash Equhalents + Net Recchabley urash on hand. Current Liabilities Current Ratio 3. Days Cash on Hand (DCOH) The current ratio equals current a Unrestricted Cash and Cash Equivalent example: Cash Operation Expenses + No. of Days in Period (368) Current 4. Days Receivables Current L Net Receivables This ratio is considered to be a Net Credit Revenues + No. of Days in Period (365) be carefully interpreted. The star Solvency Ratios computed 5. Debt Service Coverage Ratio (DSCR) Quick Ratio Change in Unrestricted Net Assets (net income) The quick ratio equals cash plus + Interest, Depreciation, Amortization Fabilities; Maximum Annual Debt Service Cash and Cash Eq 6. Liabilities to Fund Balance Curre Total Liabilities Unrestricted Fund Balances The standard by which the 1.08 to 1. is a little better than Profitability Ratios This ratio is considered to b more than the current ratio) 7. Operating Margin ($6) reasons. Operating Income (Loss) Days Cash on Hand Total Operating Revenues 8. Return on Total Assets (6) The days cash on hand (DOC EBIT (Earnings Before Interest and Taxes) ating expenses divided by 36 Total Assets Unrestricted Courtesy of Resource Group, Lid., Dallas, Texas, Cash There is no concrete sta This ratio indicates cast example indicates the org amount of (unrestricted)4:25 PM Mon Feb 22 *@ @ 45% a coursehero.com & Download 2 Attachments 1 2 X Close Question 2 Using the table below, determine the financial healthiness of New York University Langone Medical Center and New York-Presbyterian. There are not benchmarks for all the lines included. You must include the indicators/rations identified in the table. Your answer should include discussion as follows: Based on the ratios and comparison with the nearest competitor, the financial healthiness of NYU is not very good. To start, NYU's total profit margin is only 3.3%, which is below the benchmark of 4.2% and below the nearest competitor, NY Presbyterian, whose total profit margin is 4.9%. Indicator/Ratio New York New York-Presbyterian Benchmark University Hospital/Weill Cornell Langone Medical Medical Center Center Balance Sheets and Income Statement Indicators Total Fund Balances $1, 168,754,000 $4,795,313,000 Operating Income $-178,016,809 $-28,244,959 Total Patient Revenue $5,771, 119,469 $10,425,155,642 Contractual Allowance 68% 62% Percent (Discounts From Total Patient Revenue) Net Income or (Loss) $246,672,000 $596,917,000 Number of Beds 668 2,391 Profitability Ratios Total Profit Margin 3.3% 4.9% 4.2% Operating Margin 9.8% -0.7% 3.22%% Return On Assets 9.3%% 10.6% 4.0% Return on Equity 30.0% 19.6% 6.01% Working Capita $1, 168,754,000 $4, 795,313.000 Liquidity Ratios Current Ratio 1.2 2.1 2.04 Quick Ratio I.I 2. I 2.00 Days Cash On Hand -8.2 15. I 97.52 days Days In Accounts 54.3 52.1 55.8 days Receivable Assets Management Ratios Average Payment Period 73.5 90.7 56.52 days (Days Total Asset Turnover 0. 0.7 0.89 Other Ratios Average Age of Plant 8.0 12.3 10.6 years Hospital Consumer 3 out of 5 Stars 3 out of 5 Stars Assessment of Healthcare Providers and Systems (HCAHPS The survey asked patients 80% 78% 2% whether they would recommend the hospital to their friends and family Definitely Recommend) Contractual Allowance 62% 68% Amount from Total Patient Revenue Personnel Expense As A 52.4% 62.1% Percentage Of Total Operating Revenue Efficiency And Operations Measures4:25 PM Mon Feb 22 @ @ 45% a coursehero.com & Download 2 Attachments 1 2 tions Measures X Close Average Payment Top 20 $24,347 $25,376 DRGS Average Cost top 20 DRGs $36,831 $26,431 Average List Price Per Top $ 109,565 $86,413 20 DRGS Medicare Inpatient Days 40,795 181,143 36.60% Medicaid Inpatient Days 3,067 47,744 Other Inpatient Days 91,930 104,769 FTEs Per Occupied Bed 6.13 7.05 4.15 Spending per Hospita 0.99 0.96 0.95 state average Patient with Medicare 0.98 national average (displayed in ratio Volume Indicators Average Daily Census 372.0 1, 736.0 Average Length Of Stay 4.7 6.2 6.07 Days Medicare Length Of Stay 5.0 6.5 Medicaid Length Of Stay 4.6 7.4 Other Length Of Stay 4.6 6.0 Intensity Of Service Indicators Case Mix Index for 20 Top 2.1304 2.0923 1.1756 ORGS Revenue From Providing $1,536,011,171 $2,563,249,030 Medicare Services Revenue From Providing $624,996,989 $2,579,461,001 Medicaid Services Revenue From Providing $3,610, 111, 309 $5,282,445,61 Other Services