Part 1:
In 300 words, answer the following questions:
What does operating margin tell you about the organization and how would you calculate this ratio?
Select a local medical service organization and describe how they have specifically improved their operating margins.
Part 2:
In 300 words, answer the following questions:
What are the commonly used financial ratios and how would you calculate?
Select a local for profit hospital and compare its financial ratios for the most recent three years against the national norms for that type of institution.
Source: Cleverley, W., Song, P. & Cleverley, J. (2011). Essentials of health care finance (7th ed). Sudbury, MA: Jones & Bartlett. ISBN: 9780763789299.
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