Analyzing Financial Indicatiors Essay

1687 Words Sep 24th, 2011 7 Pages
Analyzing Financial Indicators Financial indicators for health care organizations completely assess the strengths of some of the most significant parts of the organization. Establishing dimensions of financial performance provides a primary structure for recognition of important financial indicators. Diverse financial indicators assess different factors of financial performance, for example cost-effectiveness and liquid assets, and all of this figures is necessary to make a knowledgeable conclusion about the financial condition of any health care organization. One indicator alone cannot identify the financial condition, and so multiple financial indicators are necessary to analyze and modify the necessary adjustments to improve …show more content…
Reducing benefits of employees within the organization may save money; however, it reduces sustainment of employees and the turnover within the organization is more likely to increase. Employees require benefits to maintain morale and well-being. Reducing benefits may decrease effective functioning within the organization and increase depression and inefficiency. The other method to improve capital shortage was to reduce proportion of agency staff of contracted employees, which saves on premiums Elijah Heart Center has to recompense to employment agencies. Furthermore, contract employees do not compare to the unchanging hospital staff, which provides short-term and long-term care to regular and intermittent patient(s). The loan option chosen to correct the capital shortage at Elijah Heart Center was loan option one that proved to be the most beneficial option to make a profit. Loan option one solved the working capital shortfall and will assist in solving the cash flow problem within the next few months. The outcome of reducing contract employees was a beneficial decision to Elijah Heart Center for the reason that this cost-effective methods cut costs paid out to outside health care agencies. Additionally, the skill level of contract employees did not match the of skills full-time employees, resulting in effective functioning within the

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