Ratio Analysis Review
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Hospital renovation is important as it ensures patients are given quality care in the healthcare facility. Hospitals should be specific on the care they give to the patients where they should consider the utilizing services that are within the hospital. From this paper, an employee is expected to recommend whether the hospital should consider a bond for financing major hospital renovation. Case mix planning will assist in giving the right recommendation because it involves choosing the number of patients attending the hospital (Hof, 2017). This tool will allow the hospital to consider the need for renovation hence a bond determination will be made. Case mix planning will allow the hospital target is achieving the goal. The cost of labor should also be considered before making such a decision because hospital renovation can be expensive to maintain. This should be compared to the revenue of the hospital. The conclusion of the paper is well connected to the body and the introduction making the discussion relevant.
001
From this paper, a hospital board member is expected to review the hospital financials to determine the ratios that will be required to make a decision. Determination of ratios is taken as one of what the board member will use to make a decision. The financial ration that is used in this case is Optum360 which allows hospitals to compare different ratios and how they rank others revenues (Optum360, 2017). It allows hospitals and physicians to get used to their revenue cycles which will be used in determining the need for hospital renovations. Choosing ratio is important as it allows the hospital to understand performance. The paper shows that not all ratios can be used to determine the need for hospital renovations. Liquidity and market value ratios have been selected as not useful rations in this case. Other ratios can be useful as they indicate what the hospital requires to make it successful. The conclusion is well presented a sot summarizes the information in the body.
References
Hof, S., Fügener, A., Schoenfelder, J., & Brunner, J. O. (2017). Case mix planning in hospitals: a review and future agenda. Health care management science, 20(2), 207-220.
Optum360. (2017). 2018 Almanac of Hospital Financial & Operating Indicators-Optum360Coding.com. Optum360coding.com. Retrieved 5 December 2017, from https://www.optum360coding.com/Product/46985/#features