Est1 Task 1

Any company or organizations need to analyze how its financial resources get used every time. The primary aim for this is to ensure accountability and maximum utilization of the resources available. From my calculations General Hospital is doing well in some sectors while it is performing poorly in others. For example the recommended SSP standards of accounts receivable recommends that it should be below than 46.2.The hospitals collections per years do not match up to their projected figures and thus they should cut down on expenses. The ratio of current assets to liabilities is favorable and up to the standards set. The hospital would not be able to operate if it runs out of funds in the account receivables as the cash on hand value is less than the recommended (Delen, 2013). It could only last for a period of 17 days before its cash reserves run out.
The operating margin of the hospital is effective showing that it is earning huge profits from the treatment of patients. The organization is efficiently using its financial resources and assets making it profitable. The excess margin of the hospital is also favorable. It shows us that the

The hospital should cut down on expenses- the amount of money used for operations is very high. The hospital can enter into contracts with drug a supplier that allows them to buy the medicine discounted prices.
2. Liquefy assets- To increase the cash on hand the hospital can sell some of their assets in order to have more money for their operations thus discouraging borrowing (Langabeer, 2015).
3. Assessment appraisal- the hospital should hire experts to assess it overall performance and provide recommendations thereby improving its operations. References
Delen, D., Kuzey, C., & Uyar, A. (2013). Measuring firm performance using financial ratios: A decision tree approach. Expert Systems with Applications, 40(10), 3970-3983.
Langabeer II, J. R., & Helton, J. (2015). Health care operations management. Jones & Bartlett