ASSESSMENT 3 HMGT

Instructions

Assessment #4: Ratio Analysis (15%)

· 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: 

· Discuss the meaning of ratio analysis in healthcare.

· Pick only  one (1) ratio from EACH major group  from the financial statements. (e.g. Current ratio, ROE, Debt to equity, ALOS)

· Major Groups:

·

· Liquidity ratios (Current ratio, Days Cash-on-Hand, Quick Ratio)

· Profitability ratios (ROE, ROA, Total Margin, Operating Margin)

· Leverage/Capital Structure Ratios (Debt ratio, Equity ratio, Debt to Equity Ratio)

· Nonfinancial Ratios (Occupancy rate, payer mix, ALOS, Expense per discharge, FTE per bed, HMO penetration)

· Discuss one (1) ratio (from EACH major group) using the following criteria:

· What is the meaning of each ratio?

· Evaluate the meaning of the ratio related to the financial health of the health care organization. Show the calculations.

· Explain the factors that affect the results related to the financial health of the organization. 

You can also utilize the sample Help4UHMO Organization financial statements (located under week 6) or a real-life health care organization to evaluate by researching their financial statements. Show relevant calculations.

· Format your paper consistent with APA guidelines.

· Provide a minimum of two (2) cited sources in your paper. Properly cite in APA format.

You will be graded base on the following rubric: