The Capstone Consulting Group has been asked to complete an executive summary concerning utilization analysis and issues, a strategic financial assessment, and a market analysis of Webster Hospital that is in southeastern Middleboro.
Utilization Analysis and Issues
Examining current and projected utilization and market penetration can help answer questions concerning the characteristics of patients and the market implications that are associated with these characteristics. Starting with the years of 2014 and 2013, discharges slightly decreased from 5,133 to 5,095 (Seidel and Lewis 2014). Patient days slightly decreased in these two years from 25,002 days in 2013 to 24,655 in 2014(Seidel and Lewis 2014). The number of inpatient surgeries decreased from 1,398 to 1,256 and outpatient surgeries increased from 4,870 to 5,005 (Seidel and Lewis 2014). Births have increased over the last two years from 1,399 to 1,510 (Seidel and Lewis 2014). Emergency department visits have also increased, in 2013 there were 20,451 visits and in the next year there were 21,556 (Seidel and Lewis 2014). Emergency department admits also increased from 2,419 to 2,584 (Seidel and Lewis 2014). For outpatient visits (excludes ED visits) there was also an increase from 81,349 to 83,976 (Seidel and Lewis 2014). The consulting group has been asked for a three-year forecast in these services. If the following trend continues, the discharges will slightly decrease throughout the next three years. These next three values for future discharges would be 5057, 5019, and 4,981. Patient days would continue to slightly decrease in the next three years with the number of patient days being 24308, 23961, and 23,614. Inpatient days have decreased in the last two years and will continue to follow this trend the next three years with the number of inpatient days being 1114, 972, and 830. Outpatient surgery has been following an increasing trend and in the next three years the number of outpatient surgeries will be 5140, 5275, and 5410. The number of births has increased in the last two years and will continue to do so throughout the next three years, with the number of births being 1621, 1732, and 1843. Emergency department visits will increase in the next three years with the number of visits being 2261,23766, and 24871. Emergency department admits will increase in the number of years with the number of admits being 2749, 2914, and 3079. The largest increase will be in the outpatient visits (excluding ED visits) and in the next three years the number of visits will be 86603, 89230 and 91857. These trends show that the service with the largest number of patients is the outpatient visits. This implicates that they market a lot to outpatients. The next largest number of patients are the emergency department, which are continuing to increase throughout the next years. This shows that more people will visit the emergency department. The lowest number of patients are the ones who are characterized as inpatient days. The decreasing amount of inpatient days shows that the hospital will have patients discharged sooner. Furthermore, the number of patient days will also be decreasing so this show that they will be …show more content…
Liquidity is used to describe how easy it is to convert assets to cash. Capital structure can be described as a firm’s debt-to-equity ratio, and it tells how risky a company is. Companies who are associated with greater capital structure pose a bigger risk to investors, but the risk can be the primary source of the company’s growth. Profitability ratios are used to determine the company’s ability to generate profits relative to its expenses. Efficiency is usually known as using the lowest amount of resources to create the greatest amount of production. In this case, to analyze financial efficiency, we will use different ratios for liquidity, capital structure and …show more content…
If any company has a debt-to-equity ratio of over 40% to 50% it should be carefully looked over to ensure there are no major risks in the financial statements (Long Term Debt 2017). Webster Hospital is just above that percentage, so investors may want to look over any financial statements just to ensure there are no major risks. Since their debt to equity ratio is low, it might be safe to say that Webster Hospital may not be taking advantage of their increased profits from their financial
Utilization Analysis and Issues
Examining current and projected utilization and market penetration can help answer questions concerning the characteristics of patients and the market implications that are associated with these characteristics. Starting with the years of 2014 and 2013, discharges slightly decreased from 5,133 to 5,095 (Seidel and Lewis 2014). Patient days slightly decreased in these two years from 25,002 days in 2013 to 24,655 in 2014(Seidel and Lewis 2014). The number of inpatient surgeries decreased from 1,398 to 1,256 and outpatient surgeries increased from 4,870 to 5,005 (Seidel and Lewis 2014). Births have increased over the last two years from 1,399 to 1,510 (Seidel and Lewis 2014). Emergency department visits have also increased, in 2013 there were 20,451 visits and in the next year there were 21,556 (Seidel and Lewis 2014). Emergency department admits also increased from 2,419 to 2,584 (Seidel and Lewis 2014). For outpatient visits (excludes ED visits) there was also an increase from 81,349 to 83,976 (Seidel and Lewis 2014). The consulting group has been asked for a three-year forecast in these services. If the following trend continues, the discharges will slightly decrease throughout the next three years. These next three values for future discharges would be 5057, 5019, and 4,981. Patient days would continue to slightly decrease in the next three years with the number of patient days being 24308, 23961, and 23,614. Inpatient days have decreased in the last two years and will continue to follow this trend the next three years with the number of inpatient days being 1114, 972, and 830. Outpatient surgery has been following an increasing trend and in the next three years the number of outpatient surgeries will be 5140, 5275, and 5410. The number of births has increased in the last two years and will continue to do so throughout the next three years, with the number of births being 1621, 1732, and 1843. Emergency department visits will increase in the next three years with the number of visits being 2261,23766, and 24871. Emergency department admits will increase in the number of years with the number of admits being 2749, 2914, and 3079. The largest increase will be in the outpatient visits (excluding ED visits) and in the next three years the number of visits will be 86603, 89230 and 91857. These trends show that the service with the largest number of patients is the outpatient visits. This implicates that they market a lot to outpatients. The next largest number of patients are the emergency department, which are continuing to increase throughout the next years. This shows that more people will visit the emergency department. The lowest number of patients are the ones who are characterized as inpatient days. The decreasing amount of inpatient days shows that the hospital will have patients discharged sooner. Furthermore, the number of patient days will also be decreasing so this show that they will be …show more content…
Liquidity is used to describe how easy it is to convert assets to cash. Capital structure can be described as a firm’s debt-to-equity ratio, and it tells how risky a company is. Companies who are associated with greater capital structure pose a bigger risk to investors, but the risk can be the primary source of the company’s growth. Profitability ratios are used to determine the company’s ability to generate profits relative to its expenses. Efficiency is usually known as using the lowest amount of resources to create the greatest amount of production. In this case, to analyze financial efficiency, we will use different ratios for liquidity, capital structure and …show more content…
If any company has a debt-to-equity ratio of over 40% to 50% it should be carefully looked over to ensure there are no major risks in the financial statements (Long Term Debt 2017). Webster Hospital is just above that percentage, so investors may want to look over any financial statements just to ensure there are no major risks. Since their debt to equity ratio is low, it might be safe to say that Webster Hospital may not be taking advantage of their increased profits from their financial