Riverview Community Hospital Case Study

383 Words1 Page

In this case, the reader learns that liquidity is a better than average. The ratio and cash on hand have been better than 2013 from the past years. Moreover, it shows that the hospital has a higher ability to meet its cash obligation because it has more security compared to other hospitals. Funding allows hospitals to control funds and limit investments. Not-for-profit organizations help provide more services and margin of safety. Therefore, creditors look for a margin of safety so that the community that financed a small portion of total financing can be returned to the owners by leveraging. Capitalization ratio measures the funds that were borrowed and the assets that have been used. The coverage ratio measures the number that time they fixed financial charges. The time's interest earned ratio shows the ability of the hospital to meet …show more content…

The expense per discharge and the expense per adjusted discharge are both higher than average. The positive trend in outpatient profitability has been in an increase in profit per visit and net revenue per visit. Outpatients profit has influenced the hospitals in expanding their outpatients and shrinking its inpatient services. Inpatient charges increased the net revenue per discharge shown in the quartile information. The Riverview Community Hospital is known to provide high-quality services to its patients. It provides an adequate amount of revenue to cover its expenses. Moreover, it allows provides charity care without affecting its stability. Also, the Riverview community hospital has joint reimbursement from the government. The length of hospital stays has been below average with allowing doctors and nurses with effective resources. The average length is below average it is quite beneficial to both patients and the hospital because it is less costly, and opens up resources for other nurses and doctors not only does it help out the workers, but allows the patient to be taken care of with accessible facilities. Therefore, it

Open Document