The first aspect of evaluating
The first aspect of evaluating performance is to understand thecurrent situation of the organization and to be able to comparethat to the planned or desired state.
Explain the financial performance aspects in ahealthcare organization.
Answer:
FinancialPerformance:
Financial performance is subjective measure of how well a firmcan use assets from its primary mode of business and generaterevenues. This term is also used as a general measure of a firm’soverall financial health over a given period of time.
FinancialPerformance aspects or Indicators of HealthcareOrganisation.
- ProfitabilityIndicator: This indicators Measures theability to generate the financial return required to replaceassets, meet increases service demands and compensateinvestors.
—– Total margin, cashflow margin,return on Equity, operating margin.
- LiquidityIndicator: This measure the ability to meetcash obligations in a timely manner
—– Current Ratio, Days cash onhand, net days revenue in account receivables.
- CapitalStructure Indicator: This measurs the extentof debt and equity financing
—– Equity financing, debt servicecoverage, long term debt to capitalization.
- RevenueIndicators: This measurs the amount and mix ofdifferent sources of revenue
—– Outpatient revenues to totalrevenues, patients deductions, medicare inpatient payer mix,hospital medicare, outpatient payer mix, hospital medicareoutpatient cost to charge, medicare acute inpatient cost perday.
- CostIndicators: This measurs the amount and mix ofdifferent types of costs.
—– Salaries to net patientrevenues, average age of plant, FTE’s per adjusted occupied bed,average salary per FTE
- UtilizationIndicators: This measures the extent to whichfixed assets are fully utilized.
—– Average daily census swing-SNFbeds, Average daily census acute beds
Conclusion:
Higher Indicator values are not always good. Most indicatorshave a middle range of “Good” values and etremeare “Bad” values
"Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!"
![](https://writinghelpe.com/wp-content/uploads/2022/08/save.jpg)