CASE STUDY 2 COMMUNITY GENERAL HOSPITAL I. INTRODUCTION Community General Hospital started in 1914 as Whittaker Memorial Hospital. A man by the name of Dr. Noland Wright was appointed as a manager at that time to review the hospital’s financial records. It turns out that Dr. Wright was trained only in the medical field not business. Unfortunately, he was the main cause for poor financial management at Community General Hospital. By 1970, the hospital had suffered in major losses and debts with a $402,000 budget deficit at the end of 1983. The hospital took drastic steps to alleviate the dire financial situation by laying off employees, refusing non-paying patients and tightening admission criteria. By 1990, the debt was in excess …show more content…
Furthermore, the ROTA figure gives investors an idea of how affectively the company is converting the money it has to invest into net income. The higher the ROTA number, the better, because the company is earning more money on less investment. For 1994, the ROTA of Community General Hospital is roughly 1.14%; however, the hospital has 6.12% of its ROTA. Therefore, the Community General Hospital did a little bit better at converting its investment into profit in the year of 1995 than 1994. B. According to the Z- Score Value (bankruptcy ratio) calculation for Community General Hospital, the firm can be classified as “Failure”. The Z-Value for both years (1994 & 1995) is in negative indicating that it is way below the 1.875. We believe that this hospital is going to be in bankrupt. C. The CAPM uses variation of discounted cash flows; only instead of giving hospital a marginal of safety by being conservative in its earnings estimates. D. With the given cost of capital at 5% the project has a negative NPV of 205,123. Therefore, we should reject the project since the NPV is less than zero or negative. The fraud relates to management embezzlement: -We know that the shareholder’s are not having any wealth at all. -We know the Hospital has no cash. -The financial deficit for the institution increased from ‘94-’95. In its current condition, it should be inoperable and out of service. It should be bankrupt at the
The facts in this case are that Harvey Pierce ambushed and shot Robin Kerl and her fiancé David Jones in the parking lot of a Madison Wal-Mart where Kerl and Jones worked. Kerl was seriously injured in the shooting, and Jones was killed. Pierce, who was Kerl’s former boyfriend, then shot and killed himself. At the time of the shooting, Pierce was a work-release inmate at the Dane County jail who was employed at a nearby Arby’s restaurant operated by Dennis Rasmussen, INC. Pierce had left work without permission at the time of the attempted murder and murder/suicide. Kerl and Jones’ estate sued DRI and Arby’s, INC. As in pertinent to this appeal, the plaintiffs alleged
S.R is a 69-year old man who presents to the clinic because his “wife complains that his snoring is difficult to live with.”
The company’s revenues are largely tied to one key group of customers – insurance companies. Almost all of a hospital’s income comes from insurance companies with the largest payers being Medicare and Medicaid. Should a hospital lose one of these primary payers, they would lose a large portion of their income putting the hospital in a critical position as a company.
This type of research is very valuable. This type of research is the most accurate and best way to fully understand the virus. It may be time consuming but it is the best way to study the virus.
You are working in the internal medicine clinic of a large teaching hospital. Today your first patient is 70-year-old J.M, a man who has been coming to the clinic for several years for management of CAD and HTN. A cardiac catheterization done a year ago showed 50% stenosis of the circumflex coronary artery. He has had episodes of dizziness for the past 6 months and orthostatic hypotension, shoulder discomfort, and decreased exercise tolerance for the past 2 months. On his last clinic visit 3 weeks ago, a CXR showed cardiomegaly and a 12-lead ECG showed sinus tachycardia with left bundle branch block. You review his morning blood work and initial assessment.
Mark volunteered to help with the community arts festival; he was supporting the not-for-profit organization as he had in the past. However, he did not know his good intentions as a volunteer would cost him his job as an assistant manager. The retail store’s phone number was printed in the festival advertising in error and ticket requests overloaded the phone lines, causing loss of business and annoyed the store manager. As a result, Mark was seen as the cause of the problems and terminated.
Discuss the four components of corporate social responsibility and how they relate to a charitable campaign such as (Product) RED. How does participation in a cause-marketing event contribute to a company's social responsibility? What role does sustainability play?
1. Create and interpret Commonwealth’s statement of cash flows for 2013. What information does it provide regarding the HMO’s sources and uses of cash over the past year?
In the case of Assessing a Company’s Future Financial Health, the case concentration is on SciTronics, a medical device company, performance measures based on the organization’s three primary financial data sources in Exhibit 1 & 2. Utilizing the 9 steps of corporate financial system, I will be able to analyze the financial health of the company to assess whether it will remain balance over the ensuing 3-5 years. The measures are grouped by focusing on “Financial Ratios” such as: 1.) profitability measures, 2) activity measures, and 3) leverage and liquidity measures. Using the financial data sources, I would be able to make recommendations regarding SciTronics 126 million loan request.
Question #1: Evaluate the conduct of Peter Lewiston against the EEOC’s definition of sexual harassment.
The firm has a negative NPV of minus 10925.95 USD while the accounting rates of return are 314, 409, 496 and 597 for the first four years (2011 to 2014). It will have a payback period of just 0.46, which makes it an ideal business. The firm will make net losses in the first two years though the second years’ loss will be less than year one loss and will achieve net profitability in the third year
Although the company has a profit of 30000 $, Jones Electrical Distribution has a negative cash flow of -30000$. Profits are not equal to cash. A business can go bankrupt if negative cash flows continue to occur for years to come. If we investigate further we find that the company has a high day sales in accounts receivable. The company is unable to collect cash quickly from its customers.
Case Name The Smithson’s Mortgage Case Study Teams This case is designed to be conducted by a team of students. The discussion, questioning, and resolution of differences is an important part of the learning experience. Another significant advantage is the sharing of the workload in preparing the final case study report. Knowledge Background This case draws heavily on the material presented in Chapters 2 and 3 of Principles of Engineering Economic Analysis, 4th Edition by White, Case, Pratt, and Agee, particularly Section 3.4 (Principal Amount and Interest Amount in Loan Payments). To a limited extent it draws on concepts from Chapter 4 (Measuring the Worth of Investments), Chapter 5 (Comparison
Krispy Kreme has experienced dramatic growth over the past 5 years based on their income statement. Every line on the income statement has grown rather impressively. Revenues have grown from $220M to $666M and net income has grown from $6M to $57M. Based on the income statement, Krispy Kreme is doing very well.
The growth category is analyzed through the earnings per share (EPS) growth rate. The EPS five-year growth rate of the hospital industry is 10.93% ("Price earnings ratios," n.d.).This ratio is a widespread marker of industry