(Answered):Healthcare Finance Case 3 . . . .

Question Description

Mechanisms for Evaluating Financial Health of Health Care Organizations

Case Assignment

Pearland Medical Center reported revenues of $1,500,000,000 in 2012and $1,250,000,000 in 2013. The revenue streams comprised 25% patientself-pay revenue, 50% third-party payors revenue, and the remaining 25%was a combination of grants from the Grant Foundation and investments.The medical center spent $15,000,000 in marketing for each of the pasttwo years. The average hospital daily patient census was 570 in 2012 and470 patients in 2013; patient hospital days were 202,920 in 2012 and171,500 in 2013.

Pearland Medical Center reported operating expenses of $500,000,000in 2012; but due to layoffs and reorganization,