BUSI494 LU Strategic Financial Analysis Discussion

User Generated

fnaqen41

Business Finance

BUSI494

Liberty University

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:
600 words
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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...


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