It is important to understand that when interpreting financial statements, the numbers alone may not provide the whole financial picture of an...

It is important to understand that when interpreting financial statements, the numbers alone may not provide the whole financial picture of an organization. Instead, you must analyze the statements using ratios, which are then compared to benchmarks across the healthcare industry. For this Assignment, you examine the financial documents for Louisville Community Hospital and analyze the organization's financial health. Louisville Community Hospital Louisville Community Hospital is a small community hospital serving a rural population. The adjusted discharges are 3.30 for the 1st year and 3.10 for the 2nd . Louisville Community Hospital Statement of Operations (in thousands) for the Years Ended December 31, 2016 and 2017 2016 2017 Revenues Net patient service revenue $23,000 $19,000 Net assets released from restriction 1,000 800 Total operating revenues 24,000 19,800 Expenses Salaries and benefits 13,000 9,000 Supplies and other expenses 7,000 6,000 Depreciation 2,500 2,000 General services 200 100 Total operating expenses 22,700 17,100 Operating income 1,300 2,700 Non-operating income 4,000 2,500 Excess of revenues over expenses 5,300 5,200 Increase (decrease) in net assets $5,300 $5,200 © 2015 Laureate Education, Inc. Page 2 of 3 Louisville Community Hospital Balance Sheet (in thousands) for the Years Ended December 31, 2016 and 2017 2016 2017 Current assets Cash and cash equivalents $700 $500 Net patient receivables 4,000 3,500 Inventory 950 750 Total current assets 5,650 4,250 Non-current assets Plant, property, and equipment Gross plant, property, and equipment 26,500 24,000 (less accumulated depreciation) (18,000) (17,000) Net plant, property, and equipment 8,500 7,000 Board-designated funds 18,000 9,000 Total assets 32,150 21,250 Current liabilities Accounts payable 2,500 2,000 Accrued expenses 900 750 Total current liabilities 3,400 2,750 Long-term liabilities Bonds payable 6,500 8,000 Total long-term liabilities 6,500 8,000 Net assets 22,250 10,500 Total liabilities and net assets $32,150 $21,250 To prepare for this Assignment: Examine the financial statements from Louisville Community Hospital. Reflect on how you will use this financial data to calculate and analyze the organization's financial ratios. Refer to Chapter 4 of Financial Management of Health Care Organizations: An Introduction to Fundamental Tools, Concepts and Applications for additional guidance. © 2015 Laureate Education, Inc. Page 3 of 3 The Assignment: Using the statement of operations and balance sheet for Louisville