Universal Healthcare Financial Analysis

Words: 1864
Pages: 8
Open Document
Using Financial Ratios to Assess Organizational Performance
Universal Health Services is a trade specialty health care company where it has been publicly held in the United States. Universal Health Services is involved in going to public hospitals. In that respect are several companies owned and operated by acute care hospitals, behavioral health centers, surgical hospitals, and ambulatory surgery center as well as radiation oncology centers. This week the focus is on making a financial plan for the next three (3) years for Universal Health Service Organization. My paper will hit some lights on factors that will planning for the next (3) years like financial ratio, the ability to meet financial obligations, profitability trends, if they are …show more content…
UHS reported a net income of $151.8 meg, or $1.53 a share, up from $107.6 million, or $1.10 a share, a year earlier. Excluding items such as a gain tied to the decrease of liability self-insurance reserves, as well as electronic health record-related shocks, adjusted profit increased to $1.20 a share from $1.12. Revenue grew 6.5 percent, $1.83 billion. Granting to the company’s shareholder report, “Revenue from acute-care hospitals rose 4.9 percent on a same-facility basis as adjusted admissions increased 2 percent. Behavioral health hospitals' same-facility revenue rose 3.2 percent.” Additionally, based on my ratio analysis, profitability trends are favorable. The company’s gross profit margin was 41.60 and the industry standard was 66.30. The gross profit margin is the ratio of gross earnings (gross sales less cost of sales) to sales revenue. It is the percentage by which gross profits exceed production costs. This ratio is a dependable reading of how profitable this company is and how efficiently it uses its resources, fabrics, and confinement. Another profitability ratio that I looked at was EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) because it is an index of a company's financial performance. In fiscal year 2012, EBITDA was $1,251 and. N fiscal year 2011 EBITDA was $1,193. The EBITDA margin for UHS was 19.90 and the industry standard was 16.80. The higher the EBITDA margin, the less operating expenses eat into a company's bottom line, leading to a more profitable procedure. The higher the EBITDA margin, the less operating expenses eat into a company's bottom line, leading to a more profitable
Show More

Related Documents: Universal Healthcare Financial Analysis

Financial Ratios Analysis and Comparison Paper

Financial Ratios Analysis and Comparison Paper Dianne Davis MHA 612 Professor Johnson June 7, 2014 Abstract It is important for healthcare organizations to understand their present performance and weak areas in order to generate more effective operational strategies. Financial ratio analysis is an effective tool to determine hospital’s performance on several indicators such as ability to pay debt, capability to generate revenue, and sales performance etc. The objective…

Words 1453 - Pages 6

Universal Health Care Sweden Polisci 183 Essay

Sweden Universal Healthcare Vs. United States Private Healthcare Ramandeep S. Badyal PLSI 183 Comparative Administartion Professor Kenneth N. Hansen March 25, 2015 The United States healthcare system is very different from all the other nations. It spends a lot of money on the healthcare and has been unsuccessful in controlling its high health care costs. Not every citizen in the United States have access to health care. Many of the other nations spend very less in healthcare, while…

Words 2703 - Pages 11

Essay on The Paradox of the Affordable Care Act

The Paradox in the Affordable Care Act Submitted By: Vodney Wynn vewynn@aol.com October 12, 2014 PA582_CourseProject Table of Contents Introduction…………………………………………………………………………………………………………………3 The History of Healthcare Reform……………………………………………………………………………..…4 The Problem with the ACA……………………………………………………………………………………………6 The Current Policy………………………………………………………………………………………………………..8 Policy Alternatives………………………………………………………………………………………………………10 Evaluation Criteria………………………………………………………………………………………………………10…

Words 4244 - Pages 17

Healthcare Policy Law Essay

Healthcare Values, Policy & Law Name Course Tutor Date Healthcare Values, Policy & Law As technology changes, the approach to healthcare services has to change to be at the same level. The pace at which health care services change is slow thus affecting service delivery. Doctors and hospital facilities are working day and night to improve the pace and deliver quality services that are not expensive but affordable to the majority of patients. Several national healthcare trends and policies…

Words 755 - Pages 4

Ehr Pros And Cons

universal adoption of EHRs and effective and efficient exchange of health information to provide the best quality health service. Medical Care Changes and EHRs Although electronic health records have brought in many benefits to the healthcare industry and helped deliver a better quality health service to millions of patients, EHRs have many challenges. In a complex, dynamic, and continuously changing healthcare system, new health laws are introduced and many changes in medical care are made, keeping…

Words 906 - Pages 4

Economic Catastrophe: Where Things Went Wrong

economic crisis was one of the most destructive economic crisis in history. Notoriously known as the “Great Recession”, after it became nearly as disastrous as the Great Depression itself. According to Arthur MacEwan and John Miller, the core of financial crisis of 2008 was led by income inequality. As this Income inequality increased, earnings of the middle class become sluggish. Lower Interest rates on loans and lower taxes on labor and capital income increased the gap between the rich and poor…

Words 2011 - Pages 9

Health Care Disparities, the Uninsured, and the Role of Cardiologists in the National Debate Essay

insurance arrives at the emergency room in the middle of the night with a myocardial infarction, often an interventional cardiologist will perform an urgent angioplasty. Who pays the cost for this care? All of us do. Today, with our inequitable healthcare delivery system, we care for many of the poor and uninsured through cost-shifting. Hospitals and physician routinely charge insured patients more than needed, because they must adjust for the likelihood that a proportion of these fees will never…

Words 2300 - Pages 10

Essay on Mali Business Strategy

hospital beds per 100,000 HIV/AIDS: adult prevalence rate 1.5%; people living with AIDS 100,000; deaths Target of Mali and Development Plan • • • • • • • • Millennium Development Goals Goal 1. Eradicate extreme poverty and hunger Goal 2. Achieve universal primary education Goal 3. Promote gender equality and empower women Goal 4. Reduce child mortality Goal 5. Improve maternal health Goal 6. Combat HIV/AIDS, malaria and other diseases Goal 7. Ensure environmental sustainability Goal 8. Develop a global…

Words 492 - Pages 2

Essay on Healthcare Organizations

at least 19,000 healthcare programs, facilities and organizations in the US. Certification and accreditation awarded by JCAHO is acknowledged nationally as a mark of quality reflecting its commitment towards achieving certain quality and performance standards. JCAHO has the duty of enhancing healthcare for Americans through partnerships with other stakeholders and evaluation of healthcare organizations and encouraging them to embark on the provision of effective and safe healthcare of premier value…

Words 1194 - Pages 5

HSA510 Health Economics Assignment 1a Essays

an article roughly forty years ago entitled "Uncertainty and the Welfare Economics of Medical Care" in the American Economic Review. In the article, Arrow looks at to what extent market and non-market institutions play roles in the allocation of healthcare. This article forever changed the way people view economics as it relates to the medical profession (Savedoff, 2004)”. In conjunction with an environment of escalating burdens on constrained resources, health economics is wielding an impact on decision…

Words 1327 - Pages 6