Assignment
You have recently successfully completed an undergraduate course in healthcare finance. You have just accepted a job offer at a local pediatric hospital as the senior department accountant. The hospital is in a rural and underserved area, with a high population of indigent community. Your boss, the CFO, would like a comprehensive analysis of the current financial status of the hospital. He gives you two months to gather and analyze required data and present this to him in a report.
He requires the report cover three main aspects:
1. Review of Financial Health of the pediatric hospital.
2. Review of the value you'd add to the pediatric hospital as a newly hired senior accountant.
3. Review of possible sources of funding from the government, that would boost hospital revenue and further health equity.
A detailed delineation of the required aspects follows:
Review of Financial Health of The Pediatric Hospital
1) Identification of ratios to determine the profitability, liquidity, capital structure, and asset efficiency.
2) Determination of Profitability:
a) Identify a ratio that would communicate organization profitability.
b) Present a formula that would be used to arrive at the ratio identified.
c) Meaning of ratio.
3) Determination of Liquidity:
a) Identify a ratio that would communicate organization liquidity.
b) Present a formula that would be used to arrive at the ratio identified.
c) Discuss meaning of ratio.
4) Determination of Capital Structure:
a) Identify a ratio that would indicate the capital structure of an organization.
b) Present a formula that would be used to arrive at the ratio identified.
c) Discuss meaning of ratio.
5) Determination of Asset Efficiency:
a) Identify a ratio that would indicate efficiency of organization assets.
b) Present a formula that would be used to arrive at the ratio identified.
c) Discuss meaning of ratio.
• Review of the Value You'd Add to the Pediatric Hospital as a Newly Hired Senior Accountant
o A discussion of your role as the senior accountant in the RCM process of the hospital.
o A discussion of your role as the senior accountant in Fraud and Abuse prevention at the hospital.
• Review of Possible Sources of Funding from The Government to Further Health Equity and Boost Hospital Revenue
o A discussion of government incentives that could be considered given the attributes and characteristics of the hospital.