Health Care

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Healthcare Financial Concepts Student’s Name Institutional Affiliation Summary The article provides a critical review of several financial ratios that are necessary for determining the financial well-being of hospitals. The authors reveal that the analysis of financial statements plays a crucial role in reducing the funding strain imposed on hospitals and the health care system (Curtis & Roupas, 2009). The article examines the use of financial ratios in determining the liquidity and profitability of hospitals. The authors also reveal the application of financial ratios in forecasting corporate bankruptcy and performing competitor analysis. The five dimensions of the financial health of healthcare organizations reflected in the ratios include liquidity, profitability, debt structure, utilization of assets, and cash flow management. Cash flow management, debt structure, and liquidity determine risk whereas the use of assets determines the profitability of the hospital. Therefore, the article reveals that a combination of risk and profitability reflects the value of the healthcare organization as indicated by Nicolăescu et al. (2015). In the article, it is evident that ensuring the survival of the hospital and keeping the stakeholders happy depends on the proper utilization of financial ratios to to make appropriate management decisions (Curtis & Roupas, 2009). The authors also reveal that the configuration of hospital assets portrays it as capital intensive whereas its daily operations represent it as labor intensive. The economic viability of the hospital depends on the effectiveness of the utilization of its assets. The revenues received per patient,

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