Managed Care Contracting and Ratio Analysis… 1 answer below »

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?

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

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.

1. Cheryl Noki
2. Donald Bailey
3. Natalie Jones
4. Casper Diggs
1. Hospital…



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