Case Study: Sturdy Memorial Hospital

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The first article I chose was regarding one of the most profitable hospitals in the state of Massachusetts. Sturdy Memorial Hospital performed strongly in its ratio of assets to liabilities and cash flow compared to debt (Connors, 2016). This report is for the fiscal year of 2015 in which the hospital ranked third among all Massachusetts hospitals. According to Connors (2016), Sturdy Memorial finances more than 91 percent of the hospitals total assets with its own cash. The second article I chose talks about Gibson Area Hospital’s board of directors extending a five-year-employment contract with the hospitals current chief executive officer, Robert Schmitt. According to Paxton Record (2016) the hospital has grown revenues by more than 150 million dollars. This revenue creates more than 400 jobs in the city of Gibson along with nine new rural health clinics. The net worth of the organization has doubled ever since chief executive officer Smith took charge in 2007 (Paxton Record, 2016).…show more content…
These liabilities are described as what the business or organization owes such as accounts payable, payroll taxes due, notes payable, and mortgages payable are all liabilities. Assets are economic resources that have expected future benefits to the business (Baker & Baker, 2000). It is described as what the business or organization owns or controls. This can include cash, accounts receivable, notes receivable, and inventory. Healthcare finances include many terms such as assets, liabilities, net worth, equity, fund balance, etc. All of these terms are applied to healthcare finance. In the first article, Sturdy Memorial Hospital has been doing great with its economic resources. Economic resource is an asset, which Sturdy Memorial Hospital has been able to attain for services provided to its community and the money owed for those
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