Select a Local Hospital And Compare Its Financial Ratios For The Most Recent Three Years Against The National Norms For That Type Of Institution
And what is your question about this assignment?
To compare the financial ratios of a local hospital against the national norms, you will need to gather financial statements for the local hospital and find the corresponding industry benchmarks for hospitals. Here's how you can proceed:
1. Identify a local hospital: Select a specific hospital in your local area that you want to examine. Note down the hospital's name and location.
2. Find financial statements: You can obtain a hospital's financial statements from a variety of sources. The hospital's website may have annual reports or financial disclosures available for download. If not, you can try contacting the hospital's finance department or search for reports on financial databases or government websites.
3. Determine the financial ratios: Once you have obtained the hospital's financial statements, you need to calculate the relevant financial ratios. Some common financial ratios used in healthcare include profitability ratios (e.g., operating margin, net margin), liquidity ratios (e.g., current ratio, quick ratio), and efficiency ratios (e.g., occupancy rate, average length of stay).
4. Obtain national norms: To compare the local hospital's financial ratios against national norms, you need to find benchmark data for the healthcare industry. Several resources provide industry benchmarks, such as financial databases (e.g., Bloomberg, S&P Capital IQ) or industry publications (e.g., Healthcare Financial Management Association).
5. Compare ratios against national norms: Once you have the national norms, compare each financial ratio of the local hospital against the industry's benchmarks for the most recent three years. This will give you a sense of how the hospital's financial performance compares to similar institutions at the national level.
It's important to note that obtaining financial statements and benchmark data may require subscription access or additional costs. Always ensure the data you are using is from reliable sources to draw accurate conclusions.