Bond repayment ratios

BHA 4053 Unit II Assessment

1. Using the example balance sheet and statement of operations (Tables 2.2 and 2.3) provided in Chapter 2, calculate the three bond repayment ratios. Use your calculations to comment on the financial condition of Ridgeland Heights Medical Center.
2. Why is it so important for a healthcare organization to develop a five-year strategic financial plan, not just an annual budget?
3. Why is financial ratio analysis crucial for understanding the financial position of a healthcare organization? Select any three of the commonly used financial ratios, provide the formula, and briefly explain what it tells us about the status of the healthcare facility.
4. Explain the difference between direct and indirect costs for a healthcare organization. Provide and discuss at least one example of a direct cost in health care and one example of an indirect cost in health care.