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Financial Analysis of Alternative Health Care Firms

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Select a local for profit hospital and compare its financial ratios for the most recent three years against the national norms for that type of institution.

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Solution Summary

This solution helps the student compare a local hospital's financial ratios against the national norm for hospitals. Includes three very informative attachments.

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Hi: This is an interesting problem. First of all you will need to select a for profit hospital in your area. Once you have done that it might be wise to make an appointment to speak with someone in accounting, if time permits. Assuming, however, that you are unable to do this, you will need to get a copy of the hospital's financial records. Typically the unaudited financial results will be available on the web. Here is an example of a very detailed analysis
http://www.nmh.org/nm/about-us-financial-statements

You will want to consider:
Staff to patient ratio (think costs: what does the staff cost/what do patients pay)
Severity of illness ...

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