As Chief Executive Officer of Valley Memorial Hospital, you have heard through the grapevine that the billing department’s performance

As Chief Executive Officer of Valley Memorial Hospital, you have heard through the grapevine that the billing department’s performance

As Chief Executive Officer of Valley Memorial Hospital, you have heard through the grapevine that the billing department’s performance is substandard and is failing to bill and/or under billing patients. Before you proceed, you want proof. Explain how each of the following ratios could support the allegation of poor billing performance. Include an analysis of working capital in your discussion. (25 points) (A 1½ -page response is required.)

1. Working Capital
2. Current Ratio
3. Return on Assets (ROA) and Return on Equity (ROE)
4. Profit Margin
5. Days Cash on Hand
6. Days in Patient Accounts Receivable

Answer preview for As Chief Executive Officer of Valley Memorial Hospital, you have heard through the grapevine that the billing department’s performance

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