Write a 4-6 page paper in which you discuss the value of ratio analysis in decision making for health care organizations. Complete the following in your paper:
o Discuss the meaning of ratio analysis in healthcare.
o Pick only one (1) ratio from EACH major group from the financial statements. (e.g. Current ratio,
ROE, Debt to equity, ALOS)
Major Groups: o
o Liquidity ratios (Current ratio, Days Cash-on-Hand, Quick Ratio)
o Profitability ratios (ROE, ROA, Total Margin, Operating Margin)
o Leverage/Capital Structure Ratios (Debt ratio, Equity ratio, Debt to Equity Ratio)
o Nonfinancial Ratios (Occupancy rate, payer mix, ALOS, Expense per discharge, FTE per bed, HMO penetration)
o Discuss one (1) ratio (from EACH major group) using the following criteria:
o What is the meaning of each ratio?
o Evaluate the meaning of the ratio related to the financial health of the health care organization. Show the calculations.
o Explain the factors that affect the results related to the financial health of the organization.