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Hefty Debt Case Study

Decent Essays
The first article “Community Health Systems to Sell Assets to Pay down Hefty Debt” is about local community health systems such as hospitals and facilities throughout the U.S. that has suffered a lack of earnings, patient admissions, profits, and share. Due to this disappointing news, community health systems will have to sell their assets in order to raise money to pay off their debt. By each quarter the losses were getting worst, community health systems continued to lose earnings and admissions. The company sold its biggest assets which were different hospitals, in hopes to pay off debt and improve financial operations. These divestitures also lead and contributed to several losses and improvements. The second article “Reform drives private equity opportunities in payer…show more content…
“Assets are economic resources that have expected future benefits to the business” (Baker, 2014). There are short and long term assets. Short-term assets are assets that will be utilized within a year. Examples of short-term assets are cash, inventory, and accounts receivable. Long-term assets are assets that will continue to beneficial longer than a year. Examples of long-term assets are buildings, land, and equipment. Equity is a value, worth, or ownership. “Equity is the ownership right in property or the money value of property” (Baker, 2014). There are two different types of equities. You have owners’ equity and stockholders equity. Owners’ equity is a sole proprietorship or a partnership. Stockholders equity is the equity stake in a company. For-profit corporations include capital stock and retained earnings which are two types of equity accounts. Assets application to healthcare finance is cash. Cash is used day-to-day for nearly everything. Hospitals, health agencies, health related businesses, etc. are all assets. Healthcare finances can’t operate without the word assets. Assets play a huge roll in healthcare for so many different reasons and
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