Develop a 4-6 page analysis of St. Anthony Medical Center’s finances over three fiscal years, which includes considerations such as assets, liabilities, revenues, and changes in financial position.
Note: This assessment uses Vila Health: Financial Statement Analysis media as the context for developing your analysis. Please make sure you have reviewed this multimedia before you complete your assessment submission.
Costs are evaluated very closely by all levels of health care administrators. Costs are broken down into different categories, such as direct costs versus indirect costs, and fixed costs versus variable costs (Finkler et al., 2022). You will examine these types of costs and learn analytical methods such as break-even analyses and cost allocation methodologies. These methodologies explore the relationship between volume and cost and demonstrate why volume plays an important role in the planning process.
For this assessment, you will research how costs are allocated from overhead departments to revenue-generating departments. You will conduct independent research on cost allocation methodologies in addition to using the materials provided in the Financial Management for Public, Health, and Not-for-Profit Organizations text. You will also consider the steps involved in preparing a cost-benefit analysis (CBA) when deciding to purchase a capital item such as an MRI machine.
The balance sheet, activity statement (also known as an income statement), and statement of cash flows are three of the most common types of financial statements that organizations prepare. You can think of balance sheets as a picture of the financial position of an organization at a given period in time—for example, as of December 31, 20xx. On the other hand, an activity statement or income statement will show the financial position of an organization over a longer period of time—for example, an entire month, quarter, or year (Finkler et al., 2022).
You will explore these types of statements and apply your new knowledge to the health care administration field. You will analyze specific financial statements and think about the financial health of an organization based on the statements provided. You will have several opportunities to practice your analytical skills within this assessment by exploring the concept of ratio analysis. Ratio analysis is one more way that both internal and external stakeholders can increase understanding of the financial position of an organization. Ratio analysis compares financial statement data to provide another view that may then be benchmarked or compared to other organizations. Some common ratio types include common size ratios, liquidity ratios, asset turnover ratios, and leverage or coverage ratios (Finkler et al., 2022).
Additionally, it is important to support your analysis with reference to relevant literature. While it is appropriate to use your Financial Management for Public, Health, and Not-for-Profit Organizations text as part of that support, your paper should reference at least three outside articles in addition to the text.
Reference
Finkler, S. A., Calabrese, T. D., & Smith, D. L. (2022). Financial management for public, health, and not-for-profit organizations (7th ed.). Sage.
This assessment has two main parts.
Analysis of the Balance Sheet
This part of the assessment focuses on analyzing the balance sheet for St. Anthony Medical Center. Relevant scoring guide criteria:
Explain the financial position of St. Anthony Medical Center by comparing assets and liabilities shown in the Financial Statement [XLSX].
Explain means to make something (an idea, a situation, or a problem) clear to someone by describing it in more detail or revealing relevant facts or ideas.
Explain the financial position of St. Anthony Medical Center compared to previous years.
Explain how accounts receivable changed from previous years.
Analyze the financial obligations of St. Anthony Medical Center and their implications for the upcoming year.
Analyze means to examine methodically and in detail the constitution or structure of something (especially information), typically for purposes of explanation and interpretation.
Adhere to the rules of grammar, usage, and mechanics.
Grammar refers to the basic rules for how sentences are constructed and how words combine to make sentences (for example, word order, case, and tense).
Usage refers to correct word choice and phrasing, particularly with regard to the meanings of words and phrases.
Mechanics refers to correct use of capitalization, punctuation, and spelling.
Apply APA formatting to in-text citations and references.
Be sure to include a separate references page.
Some prompts to help guide you in your analysis are:
Do assets exceed liabilities?
What does this tell you about the financial position of St. Anthony Medical Center?
How has the financial position of St. Anthony Medical Center changed since last year?
How has it changed since the year prior?
How have the accounts receivable changed from previous years, and what does this tell you?
Using the balance sheet, what financial obligations does St. Anthony Medical Center need to consider in the upcoming year?
The goal of this analysis is to create an accurate picture of the financial trends for St. Anthony Medical Center, its current financial obligations, and how the upcoming fiscal year projects in light of this information.
Analysis of the Income Statement
This part of the assessment focuses on analyzing the income statement for St. Anthony Medical Center. Relevant scoring guide criteria:
Analyze patient revenue compared to previous years and the implications for the financial health of St. Anthony Medical Center.
Adhere to the rules of grammar, usage, and mechanics.
Apply APA formatting to in-text citations and references.
Some prompts to help guide you in your analysis are:
Has patient revenue increased or decreased from previous years?
What could this indicate about the financial position of St. Anthony Medical Center?
The goal of this analysis is to create an accurate picture of trends tied to the overall financial health of St. Anthony Medical Center.
Additional Requirements
Your assessment should also meet the following requirements:
Structure: Include a cover page and reference page when submitting your assessment. You are encouraged to use the Financial Statement Analysis [DOCX]template for this assessment.
Length: 4–6 double-spaced pages, excluding title page and reference page.
References: Cite at least four current scholarly or professional resources.
Your Financial Management for Public, Health, and Not-for-Profit Organizationstext can be one of the four resources.
Format: Use current APA style for references and citations.
You may wish to refer to the following APA resources to help with your structure, formatting, and style:
Evidence and APA.
APA Style Paper Tutorial [DOCX].
Font and font size: Times New Roman, 12 point.
