Using the financial statements from your selected health care organization in Assignment 1, develop a financial plan for the next three (3) years.
Write a four to five (4-5) page paper in which you:
- Suggest the financial ratio that most financial analysts would use to evaluate the financial condition of the company. Provide support for your rationale.
- Speculate on the organization's ability to meet its financial obligations as they come due. Provide support for your rationale.
- Based on your ratio analysis, determine whether the profitability trends are favorable or unfavorable and explain your rationale.
- Using financial ratio analysis, predict whether or not the company will be viable in five (5) years based on its performance over the past three (3) years. Provide support for your prediction.
FINANCIAL STATEMENT ANALYSIS 1 Jalyan Goddard Financial Statement Analysis HSA525 Health Financial Management Professor James Coon October 30, 2016 FINANCIAL STATEMENT ANALYSIS 2 UHS is one of the biggest and most regarded healing center administration organizations in the country. The team works through its offices more than 240 acute care clinics, behavioral health offices and walking focuses in the US, Puerto Rico, the US Virgin Islands and the UK. UHS works on an enhanced plan of action that is part of acute care clinics and behavioral health offices. It works to end upmarket pioneers in each group, and have numerous positions in a few markets. It gives an extensive variety of administrations, for example, general surgery, inside drug, obstetrics, crisis room mind, radiology, oncology, analytic care, coronary care, pediatric authorities and behavioral health administrations (uhsinc, 2016). The examination of financial figures contained in the organization's benefit and misfortune record and accounting report by utilizing appropriate method is known a monetary proclamation investigation. These are helpful to various gatherings to acquire the required data about the association. Proprietors and supervisors require financial verbalizations to settle on consequential business culls influencing it have preceded with operations. Financial verbalizations are then performed on these promulgations, furnishing administration with a more point by point comprehension of the figures. These verbal expressions supplemental are utilized as a consequential aspect of regime's incipient answer to the stockholders. Workers require these reports in making aggregate haggling agreements with the administration, on account of worker's organizations or for people in verbalizing about their compensation, advancement, and rankings. So the financial verbalizations have paramountcy for the stakeholders in the organization (Stittle, 2003). Future investors put forth utilization of money related expressions to evaluate the feasibility of putting resources into a business. Risk-takers utilize money related inquiries and decided by experts, along these lines giving them with the premise to settling on venture choices. FINANCIAL STATEMENT ANALYSIS 3 UHS started actualizing EHR applications at sure of intensive care doctor's facilities and kept on doing as such, on a health center by-clinic premise. The great care clinics are qualified for Medicare and Medicaid EHR motivation endless supply of the EHR application, accepting they meet the significant utilizes criteria. A couple of contenders are experiencing cash related inconvenience since they took after improvement frameworks that left them with basic commitment levels, an issue that could decay if credit costs rise. UHS keeps on keeping up a strong resource report and can look for after new business openings and acquisitions in escalated mind and behavioral health. So, the current trends in the industry are favorable for the UHS (UHS). CFO could adjust objectives amongst people and the association to improve the financial performance of the organization. Results are regularly perceptible in estimations redesigns, for instance, agent satisfaction. These, similar to this, change over into improvement in salary, benefit, and customer relentlessness. The game plan is a very much requested empowered process that hoists single buy into gathering targets, while, meanwhile, invigorating individual data and learning. It starts with various focus qualities, vital parts and imperative accomplishment factors for both the social event and its people. The firm gets income from private safety net providers, including oversaw mind arranges, the government, state governments, and specifically from patients (David Edward Marcinko, 2012). In the course of recent years, the organization's development has energized by both acquisitions and the foundation of new operations in moderate size markets with above-normal populace development rates. Implementation is the system that changes techniques and courses of action into exercises with a particular ultimate objective to satisfy imperative goals and targets. A key course of action FINANCIAL STATEMENT ANALYSIS 4 outfits a business with the guide it needs to look for after a specific basic bearing and set of execution goals, pass on customer regard, and be productive. Regardless, this is just a course of action; it doesn't guarantee that the fancied execution accomplished any more than having a guide guarantees the Voyager gets in contact at the needed goal (Collum, 2013). The outcome is a course of action of progress exercises that are ideal for individuals' near and dear objectives furthermore to the social affairs. This technique approach has associated in both private and open division relationship, for instance, essentialness associations, capable organizations firms, government and informative associations (David Edward Marcinko, 2012). While senior chairmen are giving cautious thought to execution, there is negligible unmistakable advance in tip top results. In business, there are two sorts of stakeholders: inside and outside. All interested parties need to see the utilization of their venture and in this manner assess the administration through the money related articulations. Financial statements act as a base for the various parties to take the decision about an organization. And these also have their importance for the management and owners to make and implement the strategy in the organization to ensure the growth of the organization. FINANCIAL STATEMENT ANALYSIS 5 References Collum, T. H. (2013). Hospital Financial Performance: A Look at Governance and Hit Strategies. Retrieved from mhsl: http://www.mhsl.uab.edu/dt/2014r/Collum_uab_0005D_11196.pdf David Edward Marcinko, H. R. (2012). Hospitals & Health Care Organizations: Management Strategies, Operational Techniques, Tools, Templates, and Case Studies. CRC Press. Stittle, J. (2003). Annual Reports: Delivering Your Corporate Message to Stakeholders. Gower Publishing, Ltd. UHS. (n.d.). Universal Health services, INC 2015 Annual Report. UHS. uhsinc. (2016). About Us. Retrieved from uhsinc: http://www.uhsinc.com/about-us/