Health Care Company Evaluation Project Assignment Paper

Healthcare company evaluation project
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Healthcare company evaluation project
This essay provides an exhaustive evaluation of the financial and business condition of a healthcare company. The essay includes the organization’s strategy and business. Moreover, the healthcare organization’s current financial condition and future projection is analysed. The identified organization is Northwestern Memorial Hospital.
Overview of the organization’s business and strategy
Northwestern Memorial Hospital (NMH) is a Chicago-based nationally ranked medical centre. This organizational also serves as Feinberg School of Medicine’s teaching hospital. Feinberg School of Medicine (FSM) is part of Northwestern University. This healthcare organization is an 887-bed general surgical and medical facility with more than 50,000 hospital admissions annually (Rose, 2013). NMH partners with FSM to form Northwestern Medicine, an academic medical centre which is shaping the future of medicine through research, exceptional patient care, as well as training of resident doctors. This hospital has a total of sixteen medical specialties: cancer; cardiology and heart surgery; orthopaedics; nephrology; throat, nose and ear; neurology and neurosurgery; diabetes and endocrinology; geriatrics; psychiatry; pulmonology; ophthalmology; rheumatology; gynecology; gastroenterology and GI surgery; and urology (Schorsch, 2015; Gaynor et al., 2011). The investment strategy used by Northwestern Memorial Healthcare for commingled funds, mutual funds, 103-12 entities and common collective trusts entails maximizing the long-term return through investing in various assets such as private equity limited partnerships; natural resources; blended equities comprising international and domestic equities; domestic large and small cap equities; as well as international developed equities (Northwestern Memorial Healthcare, 2016; Karadag, 2015).
Current financial condition and future projections
The consolidated financial statements of Northwestern Memorial Hospital are audited by the auditing firm Ernst & Young. The hospital’s revenue and expenditures for the 2014 and 2015 financial years are as shown below: (Northwestern Memorial Healthcare, 2016).
Year ended August 31
In Thousands2015 ($)2014 ($)RevenueNet patient service revenue$3,867,302$ 2,379,932Provision for uncollectible accounts164,31683,086Net patient service revenue3,702,9862,296,846Rentals and other revenues148,35298,614Net assets released from state and federal grants and donor restrictions.34,29231,000Rental and other revenue148,35298,614Total revenue3,885,6302,426,460ExpensesUtilities and rent74,66248,529Employee benefits394,303245,656Purchased services343,327214,962Insurance 82,73347,483Supplies630,488387,974Total Expenses3,671,7662,284,349Operating Income213,864142,111Unrestricted net assetsExcess of revenue over expenditures1,879,494586,244Permanent restricted net assetsIncrease in net assets6,7273,306Net assets end of year5,485,0503,584,120
As illustrated in the financial statements of NMH, the company’s financial conditio...