Instructions
Operating Indicator Analysis Assignment:
Please answer questions 1 through 7. Please make sure to show all of your work (calculations/ formulas). Assignments submitted without calculations/ formulas will receive a zero grade. Please make sure to label your answers correctly (percent, dollars, etc.) and answer all aspects of each question.
Pay particular attention to the “why” part of the question. I would like you to explain your rationale as to why you indicated that particular operating indicator is favorable or unfavorable compared to the peer group.
Please answer ALL questions.
You need to use your textbook for this assignment.
Sunshine Medical Center is a 350-bed not-for-profit organization. In 2020, they had 69,250 inpatient days and 19,233 discharges. Sunshine’s accounting system reported $88,740,000 of inpatient service revenue and $84,000,000 of inpatient costs, with an inpatient workforce of 1,368 FTE’s. The total salaries in 2020 was $66,022,575.
1. What is the medical centers occupancy rate as a percentage? From a financial perspective, is this favorable or unfavorable compared to the peer group average found in chapter 17 of your textbook and why?
2. What is the medical centers average length of stay? From a financial perspective, is this favorable or unfavorable compared to the peer group average found in chapter 17 of your textbook and why?
3. What is the medical centers average daily census?
4. What is the medical centers profit per discharge? From a financial perspective, is this favorable or unfavorable compared to the peer group average found in chapter 17 of your textbook and why?
5. What is the medical centers inpatient FTE’s per occupied bed? From a financial perspective, is this favorable or unfavorable compared to the peer group average found in chapter 17 of your textbook and why?
6. What is the medical centers salary per FTE? From a financial perspective, is this favorable or unfavorable compared to the peer group average found in chapter 17 of your textbook and why?
7. What is the medical centers net price per discharge? From a financial perspective, is this favorable or unfavorable compared to the peer group average found in chapter 17 of your textbook and why?
Text: Reiter, K., & Song, P. Gapenski’s Healthcare Finance. 7th edition, 2021. Health Administration Press. Chicago, Illinois.
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