Inancial Ratios Analysis and Comparison Paper

Course Text:
Cleverly, W., Song, P., & Cleverley, J. (2011). Essentials of health care finance (7th ed.). New York: Jones &Bartlett

Financial Ratios Analysis and Comparison Paper

Review Chapter 10 and 12 in your course text. Write a three page double-spaced report (excluding title and reference pages), covering the following:

You are a mid-level manager in a health care organization and you have been asked to prepare a report, with appropriate exhibits, for the senior financial officer.
a. Discuss the roles played by financial ratios in general and analyze the commonly used financial ratios by categories.

b. Additionally, select a local hospital and compare its financial ratios for the most recent three years against the national norms for this type of institution. Include analytical comments and how the organization compares to the national norms as well as any suggestions as to how results could be improved.

Your paper must include an introduction, thesis, and conclusion and be three page double-spaced (excluding title and reference pages) and formatted according to APA style as outlined in the Ashford Writing Center. Utilize a minimum of threetofive scholarly and/or peer-reviewed sources (excluding the course text) that were published within the last five years, in APA format.
Required Resources
Required Text
1. Read from the text, Essentials of health care finance:
o Chapter 8: General Principles of Accounting
i § This chapter focuses on core principles of accounting and the differences between financial and managerial accounting. Cash basis, accrual basis, and three categories of net assets are discussed.
o Chapter 9: Financial Statements
i § This chapter discusses the main four types of financial statements and the importance to know the scope of business being reviewed when using financial statements.
o Chapter 10: Accounting for Inflation
i § This chapter discusses the major types of asset valuation, alternatives units of measurement in financial reporting and the major financial reporting alternatives. The uses of financial information and the difference between monetary and nonmonetary accounts are also examined.
o Chapter 11: Analyzing Financial Position
i § This chapter focuses on balanced scorecard and dashboard reporting. The primary financial objective and the critical drivers of financial performance in healthcare firms are analyzed.
o Chapter 12: Financial Analysis of Alternative Healthcare Firms
i § This chapter discusses the major nonhospital and non-physician sections of the healthcare industry and their financial analysis.