Financial Management Of The Healthcare Organization

1371 Words6 Pages
Financial Ratios Analysis
Raven Washington
MHA 612: Financial & Managerial Accounting
Professor Jack Lazarre
October 27, 2014

The financial management of the healthcare organization needs to handle financial matters carefully in order to perform well. Ratio analysis is a kind of financial statement analysis that is utilized to get a fast indication of an organizations financial performance in most important sectors, for that reason the healthcare organization must utilize ratio analysis to assess its financial position and mere its performance. Health systems routinely compare their financial results to those of a peer group of healthy competitors. Managers of most health organizations strive to achieve the outcome of comparable healthy competitors, it is equally important to examine those unhealthy competitors. By doing this managers can learn from their mistakes and know what to avoid in the future. Mid-level managers should ask themselves questions about the organization they are a part of. Are we as an organization financially on track with similar healthy companies, or are we headed for failure like some insolvent companies? Are certain financial ratios more sensitive and predictive of failure? Ratio analysis is a strategy used to aid in assessing the financial position of an health organization. In healthcare finance, there are a lot of financial ratios which have multiple descriptions. This report focuses on roles and analysis financial ratios in a
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