[u01a1] Unit 1 Assignment 1 Financial Analysis Case Study Resources Complete Case 1, River...

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[u01a1] Unit 1 Assignment 1 Financial Analysis Case Study Resources Complete Case 1, River Community Hospital (A): Review Case 1, pages 3--12, in your Cases in Healthcare Finance text. You will find a...

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[u01a1] Unit 1 Assignment 1

Financial Analysis Case Study

Resources

Complete Case 1, River Community Hospital (A):

Review Case 1, pages 3--12, in your Cases in Healthcare Finance text. You will find a case spreadsheet model via the Student Spreadsheets link in the Resources area. (Select Case 1 to download the Excel spreadsheet.)
Write a case review that assesses hospital financial performance. Your review should be approximately three pages.

Note: Your instructor may also use the Writing Feedback Tool to provide feedback on your writing. In the tool, click the linked resources for helpful writing information.

APA formatting: Resources and citations are formatted according to APA (6th Edition) style and formatting.

Linkto case study is below

http://www.ache.org/pubs/hap_companion/chapters.cfm?chap=333

you don’t need to worry about the textbook reading just the link and the case 1 is needed for this assignment

Answered Same Day Dec 26, 2021

David · Accepted Answer

Financial performance assessment of River Community Hospital  
Profitability of Hospital: 
 Year on year total margin of the River Community hospital was in decreasing trend, in 
year 2011, it’s total margin ratio was 8.75% while in 2013 it decreased by 200 bps is that 6.75%. 
However, total margin ratio is higher than the industry median in 2013. This is indicating that 
River community hospital is still more profitable than its peer’s hospital group, if management 
will control some of its expenses than the company could be more profitable in future. If we will 
look at the return on assets of the company than it is again in decreasing trend, in year 2011 it 
was 5.75% which is decreased to 4.53% in 2013, if we will compare with the industry standard 
then it is generating higher return on asset than the industry. If we will look at the Return on 
equity of the than in year 2011 it was 9.54%, while in year 2013 it was decreased to the 7.66%. 
This is indicating that hospital is not able to take growth for their equity holders. However if we 
will look at the Median of the industry, it is still less than the River community hospital.  So that, 
it could be say that river community hospital is able to generate profit than its peers group but 
year on year basis, it is in decreasing trend which could be the concern for the hospital’s 
managers and its shareholders. 
Liquidity of the Hospital: 
 Company’s current ratio in the year 2011 was 3.91 while year on year it reduced to the 
2.92 in 2012 and 2013 it’s moved to the 2.67.

[u01a1] Unit 1 Assignment 1 Financial Analysis Case Study Resources Complete Case 1, River Community Hospital (A): Review Case 1, pages 3--12, in your Cases in Healthcare Finance text. You will find a...

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