Financial Analysis Case Study
Review Case 1 pages 3- Show more Financial Analysis Case Study Complete Case 1 River Community Hospital (A): Review Case 1 pages 312 You will find a case spreadsheet model via the Student Spreadsheets. Write a case review that assesses hospital financial performance. Your review should be approximately three pages. CASE 1 Student Version Student Version Copyright 2014 Health Administration Press Copyright 2014 Health Administration Press Copyright 2014 Health Administration Press 11/28/2015 Copyright 2014 Health Administration Press Copyright 2014 Health Administration Press Copyright 2014 Health Administration Press RIVER COMMUNITY HOSPITAL (A) Assessing Hospital Performance Case 1 presents the opportunity to conduct an extensive financial statement and operating Case 1 presents the opportunity to conduct an extensive financial statement and operating Case 1 presents the opportunity to conduct an extensive financial statement and operating Case 1 presents the opportunity to conduct an extensive financial statement and operating Case 1 presents the opportunity to conduct an extensive financial statement and operating Case 1 presents the opportunity to conduct an extensive financial statement and operating Case 1 presents the opportunity to conduct an extensive financial statement and operating indicator analysis on a 210-bed not-for-profit hospital. The case includes statement of cash indicator analysis on a 210-bed not-for-profit hospital. The case includes statement of cash indicator analysis on a 210-bed not-for-profit hospital. The case includes statement of cash indicator analysis on a 210-bed not-for-profit hospital. The case includes statement of cash indicator analysis on a 210-bed not-for-profit hospital. The case includes statement of cash indicator analysis on a 210-bed not-for-profit hospital. The case includes statement of cash indicator analysis on a 210-bed not-for-profit hospital. The case includes statement of cash flows analyses Du Pont analyses ratio analyses and economic value added analyses. flows analyses Du Pont analyses ratio analyses and economic value added analyses. flows analyses Du Pont analyses ratio analyses and economic value added analyses. flows analyses Du Pont analyses ratio analyses and economic value added analyses. flows analyses Du Pont analyses ratio analyses and economic value added analyses. flows analyses Du Pont analyses ratio analyses and economic value added analyses. flows analyses Du Pont analyses ratio analyses and economic value added analyses. The instructor version of the model is the same as this model. The key to student success in The instructor version of the model is the same as this model. The key to student success in The instructor version of the model is the same as this model. The key to student success in The instructor version of the model is the same as this model. The key to student success in The instructor version of the model is the same as this model. The key to student success in The instructor version of the model is the same as this model. The key to student success in The instructor version of the model is the same as this model. The key to student success in this case lies in interpretation of the data presented rather than number crunching. this case lies in interpretation of the data presented rather than number crunching. this case lies in interpretation of the data presented rather than number crunching. this case lies in interpretation of the data presented rather than number crunching. this case lies in interpretation of the data presented rather than number crunching. this case lies in interpretation of the data presented rather than number crunching. this case lies in interpretation of the data presented rather than number crunching. However there is ample opportunity for students to extend the model to include percentage However there is ample opportunity for students to extend the model to include percentage However there is ample opportunity for students to extend the model to include percentage However there is ample opportunity for students to extend the model to include percentage However there is ample opportunity for students to extend the model to include percentage However there is ample opportunity for students to extend the model to include percentage However there is ample opportunity for students to extend the model to include percentage change analysis and common size analysis as well as to create graphs (charts) as needed change analysis and common size analysis as well as to create graphs (charts) as needed change analysis and common size analysis as well as to create graphs (charts) as needed change analysis and common size analysis as well as to create graphs (charts) as needed change analysis and common size analysis as well as to create graphs (charts) as needed change analysis and common size analysis as well as to create graphs (charts) as needed change analysis and common size analysis as well as to create graphs (charts) as needed to present their findings. Note that the industry data used in this case are for instructional use only and do Note that the industry data used in this case are for instructional use only and do Note that the industry data used in this case are for instructional use only and do Note that the industry data used in this case are for instructional use only and do Note that the industry data used in this case are for instructional use only and do Note that the industry data used in this case are for instructional use only and do Note that the industry data used in this case are for instructional use only and do not represent actual industry data for the time period of the case. not represent actual industry data for the time period of the case. not represent actual industry data for the time period of the case. not represent actual industry data for the time period of the case. not represent actual industry data for the time period of the case. Statements of Operations (Millions of Dollars): Revenues 2011 2012 2013 Net patient service revenue $ 28.796 $ 30.576 $ 34.582 Other revenue 1.237 1.853 1.834 Total revenues $ 30.033 $ 32.429 $ 36.416 Expenses Salaries and wages $ 12.245 $ 12.468 $ 13.994 Fringe benefits 1.830 2.408 2.568 Interest expense 1.181 1.598 1.776 Depreciation 2.350 2.658 2.778 Medical supplies and drugs 0.622 0.655 0.776 Professional liability 0.140 0.201 0.218 Other 9.036 10.339 11.848 Total expenses $ 27.404 $ 30.327 $ 33.958 Net income $ 2.629 $ 2.102 $ 2.458 Balance Sheets (Millions of Dollars): Assets 2011 2012 2013 Cash and investments $ 4.673 $ 5.069 $ 2.795 Accounts receivable (net) 4.359 5.674 7.413 Inventories 0.432 0.523 0.601 Other current assets 0.308 0.703 0.923 Total current assets $ 9.772 $ 11.969 $ 11.732 Gross plant and equipment $ 47.786 $ 55.333 $ 59.552 Accumulated depreciation 11.820 14.338 17.009 Net plant and equipment $ 35.966 $ 40.995 $ 42.543 Total assets $ 45.738 $ 52.964 $ 54.275 Liabilities and Net Assets Accounts payable $ 0.928 $ 1.253 $ 1.760 Accruals 1.460 1.503 1.176 Current portion of long-term debt Current portion of long-term debt 0.110 1.341 1.465 Total current liabilities $ 2.498 $ 4.097 $ 4.401 Long-term debt $ 15.673 $ 19.222 $ 17.795 Net assets $ 27.567 $ 29.645 $ 32.079 Total liabilities and net assets Total liabilities and net assets $ 45.738 $ 52.964 $ 54.275 Statements of Cash Flows (Millions of Dollars): Cash Flows from Operating Activities Cash Flows from Operating Activities 2012 2013 Net income $ 2.102 $ 2.458 Depreciation 2.633 2.756 Change in accounts receivable Change in accounts receivable (1.315) (1.739) Change in inventories (0.091) (0.078) Change in other current assets Change in other current assets (0.395) (0.220) Change in accounts payable 0.325 0.507 Change in accruals 0.043 (0.327) Net cash flow from operations Net cash flow from operations $ 3.302 $ 3.357 Cash Flows from Investing Activities Cash Flows from Investing Activities Investment in plant and equipment Investment in plant and equipment $ (7.686) $ (4.328) Cash Flows from Financing Activities Cash Flows from Financing Activities Change in long-term debt $ 3.549 $ (1.427) Change in current portion of long-term debt Change in current portion of long-term debt Change in current portion of long-term debt 1.231 0.124 Net cash flow from financing Net cash flow from financing $ 4.780 $ (1.303) Net increase (decrease) in cash and investments Net increase (decrease) in cash and investments Net increase (decrease) in cash and investments $ 0.396 $ (2.274) Beginning cash and investments Beginning cash and investments 4.673 5.069 Ending cash and investments $ 5.069 $ 2.795 Note: The depreciation and fixed asset acquisitions data in the statements of Note: The depreciation and fixed asset acquisitions data in the statements of Note: The depreciation and fixed asset acquisitions data in the statements of Note: The depreciation and fixed asset acquisitions data in the statements of Note: The depreciation and fixed asset acquisitions data in the statements of Note: The depreciation and fixed asset acquisitions data in the statements of cash flows are somewhat different than they would be if calculated cash flows are somewhat different than they would be if calculated cash flows are somewhat different than they would be if calculated cash flows are somewhat different than they would be if calculated cash flows are somewhat different than they would be if calculated directly from the other financial statements because of asset revaluations. directly from the other financial statements because of asset revaluations. directly from the other financial statements because of asset revaluations. directly from the other financial statements because of asset revaluations. directly from the other financial statements because of asset revaluations. directly from the other financial statements because of asset revaluations. Operating Revenue and Expense Allocation…
