Eight Basic Ratios Used in Health Care

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HCS 405 Week 4 Learning Team Assignment Patton-Fuller Ratio Computation

Resource: Patton-Fuller Community Hospital Virtual Organization

Review the financial statements, located in the Patton Fuller Community Hospital Virtual Organization.

Click on the Virtual Organization link on the left column of the student website. Click on the Healthcare tab and access the Patton-Fuller Community Hospital. Click the Chief Financial Officer link under the Corporate Officers tab to access the financial statements.

Compute the eight ratios—as shown in Chapter 11—for Patton-Fuller Hospital based on its unaudited financial statements and critique its operating results and financial position. Ratio by ratio, do you agree or disagree with the CEO’s report to the Board?

Read the Annual Report and the audited financial statements, and re-compute those same ratios using the audited financial statements.

Consider the financial performance before the audit, and after the audit. What has changed and how significant is that change? What plans should the hospital Board make for next year and the next five years? 

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