Managed Care Contracting and Ratio Analysis

From the scenario, interpret the operating indicators used to analyze the financial performance of the organization. Indicate specific ways in which this information will help management improve the performance of the organization. Provide support for your rationale.

Assume that you are a hospital administrator, and one of your responsibilities is selecting financial ratios to be included on your management dashboard. Determine the two (2) most critical financial ratios for you to monitor at your facility, and indicate how each of these ratios would help you assess the current performance of your facility. Provide support for your rationale.

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JBL – Health Care Finance Learnscape 3: Firm Financial Position or Not? Firm Financial Position or Not? Introduction: In this Learnscape, the Student plays the role of a recently appointed board member to the Hospital System who had previously worked at the Hospital. The Student must help to determine whether the Hospital should consider a bond to finance a major hospital renovation. The Student needs to prepare a position on this critical financial determination for an upcoming Board meeting where all sides will be discussed. As the Learnscape opens, the Student receives an offer for help from friend and former CFO of the Hospital system, Cheryl Noki. She knows that a lot has been dumped on the Student and feels that they may need assistance in sorting and understanding the information. The Student explores the use of a balanced scorecard and dashboard reporting, and a position starts to take shape. The student meets privately with the Chairman of the Board, though, and after discussing the primary financial objective of the hospital system, is asked to come up with key financial performance drivers and measures to help the board in their determination. Two other board members come to the Student to plead their cases. One of them asks that the Adjusted- Discharge Measures of Cost be considered, too, while the other pushes for a newer method called the Hospital Cost Index, and they briefly argue the difference. In the end, with the help of Cheryl, the Student must make the best determination on whether the Hospital is strong enough financially to take on this new renovation bond, while addressing the particular points brought up by the board members. A natural assessment with Cheryl will help the Student test knowledge learned in the course of the Learnscape and help the Student have a successful meeting with the Board. Characters: 1. Cheryl Noki 2. Donald Bailey 3. Natalie Jones 4. Casper Diggs Locations: 1. Hospital…