HSA 6115 Final Exam Flashcards
(35 cards)
Current Ratio
Shows number of times short-term obligations can be met from short-term creditors.
Total current assets / Total current liabilities
Accounts receivable (days)
Measure of the efficiency of collections function
Net patient accounts receivable / (net patient revenue / 365)
Cash - on - hand (days)
of days an organization could pay its cash operating expenses if none of A/R were collected
(cash + cash equivalents) / ([total operating expenses - depreciation expense]/365)
Average payment period (days)
measure of how efficiently an organization pays its bills
Current liabilities / ([total operating expenses - depreciation and amortization expense]/365)
Leverage
How much a company owns based on assets and equity
Leverage - liabilities - liquidity
- How much a company owns based on assets and equity
* Having leverage could be a good or bad thing, it depends on the organization and their current financial status.
Planned budget
Planned: Planned management + Planned Volume
Flex budget
Flex: Planned management + Actual volume
Actual budget
Actual: Fixed management + Actual volume
Isolating change due to volume
compare where the volumes are different
Isolating changes due to mangement
compare Actual to Flex budget
Break-even analysis (volume)
Fixed costs /
price per unit - variable cost per unit
Break-even analysis definition
Helps to evaluate the economic viability of a proposed alternative involving resource allocation.
Break-even analysis (volume)
*Fixed costs /
price per unit - variable cost per unit
- Volume / Profit
Contribution margin formula
Revenue - Variable costs
Profit
Revenue - (Fixed costs - Variable costs)
Total costs
Fixed costs + Variable costs
Variable costs
Variable costs per unit x # of units
Revenue
Price per unit x # of units
Porter’s 5 Forces
- Rivalry
- Bargaining power of suppliers
- Threat of entry
- Bargaining power of buyers
- Threat of substitutes
- In addition to these five forces, each one needs to be broken down by:
1. Issues for Industry
2. Implications for Organization
3. Implication for strategy, not a strategy
Rivalry
Want to be able to differentiate self among competitors (stand out)
Threat of entry
are their certain threats that hinder your entry into that particular industry
Threat of substitutes
No commonalities. Make yourself indistinguishable.
Bargaining power of suppliers
Can’t make money without key players (i.e. physicians)
