Health Care Organization Financial Analysis Paper Example

Introduction

Bobcat Hospital is a non-profit business organization that consists of 120 bed acute hospital, 15 rehabilitation service, a 25 bed expert nursing facility as well as an agency of the homecare. The hospital also has an outpatient clinic. Ideally, the company plays a crucial role in the provision of healthcare services through its patient hospital centre. The hospital has experienced a tremendous success and development for the past few years. As part of the hospital's strategic planning, the hospital is determined to provide effective and affordable healthcare delivery through its rehabilitation hospitals, which are the specialty hospitals that provide intensive impatient rehabilitation therapy. The hospital implemented the strategy that involved the establishment between the Bobcat county hospitals to meet a perceived requirement for the services, which is perceived as less expensive on per diem basis than the common hospitals. As part of its strategic planning, the Bobcat aims at offering excellent products in the form of the service that integrate the surgical and medical services in addition to supporting the laboratories, workforce and equipment that constitute the surgical and medical mission of the hospital or various systems of the hospital. A closer look would reveal that the hospital would reveal that the hospital products constitute the core of various offerings of the hospitals. Ideally, they are frequently shaped through the requirements. The organization therefore targets a very lucrative market which mainly consists of the middle income people of the community.

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The primary competitors of the organization is the Bobcat community hospital. However, Bobcat hospital is a type of institution that consist of basic workforce and services normally various department of surgery and medicine. This department is mandated to manage the clinical categories of services for the particular conditions and diseases.

Financial Analysis

1) Current ratio = 2.116 - Better

Total current assetsTotal current liabilities = 3,9121,849 = 2.116

2) Collection period ratio = 165.427 - Better

Net recievables Net patient service revenue/365 = 3,53635.701 = 165.427

3) Days cash on hand = 11.790 - Worse

Cash+temporary investments(Total expenses-deprication expenses)/365 = 16922.392 = 11.790

4) Average payment period ratio = 82.547 - Better

Total current liabilities(Total expenses-Depriciation expenses)/365 = 1,84922.392 = 85.547

5) Operating margin ratio = 0.023% - Better

Operating incomeTotal operating revenue * 100 = 28,642 * 100 = 0.023%

6) Excess Margin ratio = 1.076% - Better

Excess of revenues over expensesTotal operating revenue * 100 = 938,642 * 100 = 1.076%

7) Age of plant ratio = 3.673 - Worse

Accumulated depriciationDepriciation expenses = 1,730471 = 3.67

8) Cash flow to debt ratio = 10.351 - Better

Excess of revenues over expenses+depriciationCurrent liabilities+long term debt * 100 = 5645,449 * 100 = 10.351

Corporate Planning

A corporate strategic plan refers to a document that describes the necessary steps for an organization to develop and become more profitable. The benefits of strategic planning for Bobcat include aligning each member and working towards the achievement of the organization's objectives as well as the resources of the company. The elements of the Bobcat's corporate planning includes its mission, the analysis of the current situation, and vision for future, goals and objectives and strategies and tactics. Regarding the mission statement, Bobcat aims at providing the quality health services and facility for the community with the aim of promoting the community wellbeing to relieve the suffering and restore the health as swiftly and humanely.

Current analysis

In terms of the analysis of the current situation and the prevailing factors that influence the operation of the company, the Hospital aims at becoming a leading healthcare provider as part of its long-term goal. The strengths and weaknesses of the company constitute a major element that will guide the company to achieve its objectives. The Bobcat hospital intends to use its weaknesses to identify possible areas for development and the opportunity for growth in terms of providing effective healthcare services. The current situation, in this case, entails the economic and industry development and how these factors may impact the hospital.

Vision for Future

The Bobcat's vision is founded to provide an ideal definition of its strategic objectives and vision for the future. It involves observation of how the organization would like in the future with the assumption that everything goes in line with the plan. Bobcat aims at receiving a tremendous amount of revenue that will steer it up towards meeting the cost of its operation and acquiring new resources.

Based on the fact that the coming up with the vision by the management is usually tricky, the Bobcat acknowledges the process must challenge the capabilities of all members of the organization without being so optimistic that it could not possibly be realized. The goals must, therefore, be carefully subjected to scrutiny, and this may involve setting out the goals for each department or division. It is critical that the top executive must involve all the divisions or departments.

References

Clark, C. S., & Krentz, S. E. (2006). Avoiding the pitfalls of strategic planning. Healthcare financial management, 60(11), 62-68.

Gauld, R. (2007). Public sector information system project failures: Lessons from a New Zealand hospital organization. Government information quarterly, 24(1), 102-114.

Hans, E. W., Van Houdenhoven, M., & Hulshof, P. J. (2012). A framework for healthcare planning and control. In Handbook of healthcare system scheduling (pp. 303-320). Springer, Boston, MA.

Killingsworth, B., Newkirk, H. E., & Seeman, E. (2006). An integrative health information systems approach for facilitating strategic planning in hospitals. Health care management review, 31(2), 119-129.

Skinner, D., Gardner, W., & Kelleher, K. J. (2016). When hospitals join the community: Practical considerations and ethical frameworks. Journal of health care for the poor and underserved, 27(3), 1171-1182.