Question:
Profitability analysis : Compare the profitability ratios for Glen Hall Hospital with its industry benchmarks.
During this time period, Glen Hall has increased its patient volume, negotiated higher rates for its managed care contracts, and lowered its labor expenses by outsourcing several support services (see Exhibit 4-17)
Exhibit 4-17 Selected ratios for Glen Hall Hospital and the industry benchmarks
Revenue, Expense, and Profitability Ratios | Industry Benchmark | Glen Hall Hospital |
---|---|---|
Operating revenue per adjusted discharge | $4,900 | $5,250 |
Operating expense per adjusted discharge | $4,833 | $4,300 |
Salary and benefits as a percentage of total operating expense | 50% | 45% |
Operating margin | 0.02 | 0.06 |
Return on assets | 0.03 | 0.09 |
Non-operating revenue ratio | 0.04 | 0.15 |
Leave a comment