Description
After reading the article "An Analytical Review of Hospital Financial Performance Measures," write a response answering the following questions:
What are the advantages of creating “viability” measures for hospitals? What problems does it present?
What problems are inherent in the use of financial ratios for US hospitals?
How are financial ratios used in relation to bond ratings?
Explanation & Answer
Attached.
1
Outline
Topic Questions and Answers
Overview: Essay
Part One
Introduction
Question One
I.
There are different advantages associated with creating financial viability measures for
hospitals. Glandon et al. (1987) argue that healthcare financial viability can be associated
with a wide range of beneficial outcomes.
II.
Financial viability ensures that the patients have better experiences, provides for lowreadmission rates, and ensures that the institution is functioning both effectively and
optimally.
III.
It promotes optimal functioning and equips the facility with the resources needed to provide
quality care.
IV.
Creating viability measures for hospitals can also be linked with lower debt and
dependency levels.
V.
The healthcare environment is rapidly changing. Currently, the environment features
technological integrations and implementations.
VI.
Currently, the cost of care is extremely high. More than 45% of American adults’ report
challenges in accessing care due to the associated costs and expenses.
2
VII.
One important factor to understand is that this is a system that has operated like this for
years. As a result, creating the right and healthy environment for financial viability may be
challenging.
Question Two
I.
There are a number of problems that can be linked to using financial ratios for US hospitals.
Financial ratios are universally leveraged to provide numerical information on the health,
profitability, and trajectory of the business.
II.
For an organization that wants to progress forward, this can be particula...
Review
Review
24/7 Homework Help
Stuck on a homework question? Our verified tutors can answer all questions, from basic math to advanced rocket science!
Similar Content
Related Tags
The Unwinding of the Miracle
by Julie Yip-Williams
Girl Stop Apologizing
by Rachel Hollis
A Brief History of Humankind Sapiens
by Yuval Noah Harari
Blink
by Malcolm Gladwell
Milkweed
by Jerry Spinelli
The Tipping Point
by Malcolm Gladwell
Gone with the Wind
by Margaret Mitchell
Notes from Underground
by Fyodor Dostoyevsky