Community Hospital

Community General Hospital

1. Based on information presented in case, I can conclude that Community General Hospital is organized as nonprofit organization. The main characteristics of voluntary organizations are: profit received are not distributed among shareholders, there is no simple and clear lines of ownership and accountability, all income should be used for maintaining operations and mission. First of all, let’s look at the Balance Sheet: Trade Receivables are main source of Current Assets, so that organization is highly depended from commitment of an outside donor. Amount of an account Liabilities subject to compromise represents separate reporting of reorganization efforts from results of constant operations. This account usually appears when a company records for a bankruptcy, so that creditors will not be paid in full. That is why liabilities are two times higher than assets, as the result both years incurred fund deficit. From brief analysis of Balance sheet, company is unable to pay obligation to creditors and other third parties in the long run. Statement of Cash Flows provides data on the cash inflows and outflows of the organization between one date and another. Net Cash provided by OA fall from $752,930 to -$461,838, it means that organizations primary operations loss-making. For deep measure of performance of organization we can use common size analysis and trend analysis. We calculated some ratios:

Current Ratio = CA/CL = 0.602 (1994); = 0.68 (1995) it means that company slightly improves financial situation and as the result ability its obligations o time.

NWC = CA – CL = -1781238 (1994); - 1473344 (1995)

PM = Total Revenue-Total Expenses/ Total Revenue = 0.014 (1994); = 0.064

2. The core issues of Community General Hospital are:

✓ Mismanagement of the institution; the main funds and resources are gained from people who make donations and support mission of institution because they think that it’s...