Financial Analysis: The New York and Presbyterian Hospital
In the contemporary society healthcare is seen to be one of the most important aspect of life that every person needs. The recent emergence of various diseases that needs immediate attention is seen to have a profound effect on the cost of medical treatment. The governments have tried across the globe to ensure the healthcare sector is up to date. It is as well quite imperative to note that the main reason why the governments are interested in this sector is because there is need for a healthy workforce that is deemed to bring on board the advent of high productivity in the country. Citizens forms high level of human resource that makes the economies to grow. However, the recent development in the various diseases and the infections that have encompasses various individuals has raised the cost of healthcare treatment. There is therefore need for a profound analysis of the various set and prompts of the financial position and the strength of various health facilities. In the analysis, the main aim would be to bring to terms the notion of getting to know the financial strengths of the institution. Additionally, the financial failures for the company is very vital because this notion will help the company know the exact area where they should change and apply a corrective measure. As its stands, this paper brings on boars the various techniques and methods that are being used in making sure that the financial viability of these healthcare facilities are known. Additionally, it would reveal the fundamental areas that need to correct in order to create an ambiance of conformity and improvement on the same. For company to understand its financial strength, it is imperative look at the various economic indicators that build the company’s financial framework and how these indicators can be streamlined to ensure a maximum gain from the company in question.
The New York and Presbyterian Hospital is a university hospital that is located in the New York City. The hospital has various departments that constitute it. Additionally, the hospital is said to be affiliated to the Ivy League of medical schools. As it stands, the CEO of the hospital is Steven Corwin. The founder is called James Lennox and founded it in the year 1998. The New York and Presbyterian Hospital is teaching hospital where the college students come to do their practical studies as well. The various universities that are affiliated to this hospital include the Columbia University, the college of physicians and surgeons and the Weill Cornell Medicine. All these three universities find this hospital as a suitable hub for developing the students in the medical field. This paper looks into the economic and the financial viability of the company with keen attention to its financial statement. We would dwell on the various factors that have direct effects of the economic standing of the institution with keen concern on the various ways in which these indicators have affected the firm’s overall performance. After a though analysis on the various national economic issues that affect the company, we would dig into the financial of the company. Here we would have an incisive analysis of the institutions’ fundamental financial statements. The main aim of this scrutiny is to give provide a detailed report on the profitability of the company and recommend on the various areas that requires improvements. In the financial analysis is would dwell on the ratio analysis, the cost benefit analysis and the various prompts of the net present value analysis.
There are various economic factors that affect the operations and the financial aspects of The New York and Presbyterian Hospital. For a hospital to operate in the most efficient manner there is need for installation of very profound equipment and human resource that would help in making sure that service is guaranteed. The hospital must now get the fund from various quarters in order to meet the demand of the patients. With the ever growing population in the United States, it is also expected that the number of patients in this hospital is deemed to increase. The government is one of the parties that must allocate some funds for the improvement of this medical facility. The government is at times faced with various predicaments that make it to direct its funds to some other parties. This has a transcending effect of reducing the amount of money that would allocated for these hospital. The resultant effect is that the company would not be able to meet the rising costs of expenditure that it incurs every. The hospital is deemed to provide the poor quality services that would be quite detrimental to the inception of the whole healthcare sector.
In the recent past, there has been development and emergence of numerous diseases that gives the practitioners to carry out a lot of research in getting to know the real causes of the disease and the curatives that would be used in making sure that these diseases are cured, the economic recessions that the countries undergo makes the funding of the various vital project of the company to reduce. The investments levels are deemed to be low and this makes even the cost of building various equipments to be very high. The production of various products could prove dangerous on the account of pollution and environmental degradation. There are various advents of environmental sustainability programs that the company has embarked one gives an incisive report of the performance of the company in making sure that the economic burden is not shifted to the general public at the interest of the profits that this company would want to gain in the long end (Hale, & Wittusen, 2011). In particular, we look at the how the company has been able to contribute to the advent of tragedy of commons. Additionally, we would dig into details the aspects of the business impact that the company has taken into control and those that the company has neglected.
As we all know, the New York and Presbyterian Hospital is one of the companies that deals in the provision of healthcare services, there are various areas that the issue of tragedy of the commons have sprouted. In the recent past, we find that the company is seen to have reported high amount if profits from the sale of the healthcare products and services both in the country and also abroad. The company main agenda for this year was that it becomes the leader of the market share in term of the production of various healthcare products and services to the market (Epstein, & Rejc, 2014). This strategy is seen to be working. Another are where the company management decided to build their mission was on the maximization of the profits for this year as well. As it stands, the company has since reduced its expenditure on pertinent areas that concern the environmental conservation.
The company is indeed on the verge of making sure that it cuts down its costs so that the shareholders’ wealth is maximized. This notion comes in contrast with the fact that the company has the responsibility also to make sure that it conserves the environment for which it produces its raw materials (McCool, & Moisey, 2008). As it stands now, the company has greatly reduced its expenditure in this sector and now burden of conserving the environment has been transferred to the commons who are the real citizens leaving in these places of production. The public now have to deal with the health problems that come with the pollution that is seen in the areas where the company produces (Baden, & Noonan, 2008). The tragedy of the commons is also seen to emanate where the locals are also denied the big opportunity of employment into this firm by the company bringing people from other areas to come and be part of the team who are employed. In short, the company has contributed to the tragedy of the commons by creating having the interest of making high profits without any regard to the health and employment problems that these persons face (Roberts, 2006).
One of the business impacts that the company has embarked is the creation of foundation that tend to reduce the level of poverty in the areas where they produce. The company is well aware that by producing the various toxic products in these areas, the company has to give back to the society as well in order to better their economic status. As at now, the foundation has made donations to the needy (Gulati, 2013). While going through their financial statements, the company spends millions of funds to make that the common public has been catered for in terms of the provision of very needs that they might need (Calkins, 2012). The sustainability of this program has been made possible through by the company making provisions for funds that goes to this program every year.
The board of directors has made this decision in order to ensure that they are very responsible for the sustenance of the economy. Additionally, the company has tried to engage in building of the health facilities that are expected to address the health problems that the community around uses in case of any medical illness (International, 2009). However, the company has not addressed the notion of equitable employment opportunities to the community members. This notion is seen where the company has employed more foreigners than the locals. Form the data management system analyzed for the company we see that the locals only contribute to about 32% of the employee workforce in the company. Furthermore, the positions that the locals have been placed are mostly the subordinate staff. The management staff has few individuals that emanates from the local community (Davies, 2006).
In the profitability analysis we looked at the various advents for which the institutional is deemed to make some profits that may be quite beneficial to it. In this prospect we look at the gross, operating and net profit margins. Additionally, we give a scrutiny on the return on asset and equity as well. The graph below shows these parameters as calculated.
Graph 1.0 Profitability graph
From the graph below, it is evident that the institution is very profitable. Looking at the gross, operating and the net profit, they are all steady and above the industry average. This calculation shows that the company is viewed to have a very bring future in terms of development. The instituted has also recorded a high stance of return on equity. This means that stakeholders have faith that their wealth is growing in the company as well as their assets.
Financial analysis tools are very helpful in making sure that we make a reflective investment decisions. The most important statistical computation that are commonly used are the measure of central propensity. This includes the mode average and median. It is also imperative to look at the compute of dispersion that. This computation mainly entails the use of standard variation and the various. From the computations of these statistic procedures, we are able to look into the riskiness of various investment plans that may seem to be relatively appealing yet very precarious Additionally, there is need to scrutinize how the variety of investment opportunities compare with each other. In this advent a closer look at the correlation of the returns of these venture is every important (Lee, & In Lee, 2015). In the event of projection, it is important to look at the actual investment return rates and investigate them using the regression analysis. In degeneration analysis, there is the coming up of a specific equation that communicates these returns and how the returns can be used to make appropriate investment decision.
In projection, there is need to relate the investment profits with the resultant output per years of every healthcare returns. For example if the business invests $ 10000 in a given healthcare stocks, he would be able to envisage the expected returns using the degeneration equation so far structured. In addition to this it is essential to look at the present worth of the gain that accustomed is estimated to get in the event that they essentially invest in a certain business enterprise. This notion is very vital particularly when dealing with the extended term ventures which have increased payback period. Statistics is able to provide a clear suggestion on the profitability of a give venture opportunity. Given this enlightenment it is essential to look at various customs in which these arithmetical tools could be used in accentuating that an informed decision is arrived at when responding certain questions.
A financier needs to use various arithmetical techniques in deliberating the types of investments to endeavor into. One of these procedures is the measure of fundamental tendency which is revealed by the explanatory statistics as shown.
|Three months profit||1 year profit||Three year profit|
|Confidence Level (95.0%)||0.013||0.14||0.13|
From the abstract above, it is evident that the regular return for one-time mutual fund asset (25.61%) is quite gainful than that of the 3-year venture. For the 3 year speculation, the average return is unconstructive which means a shareholder is deemed to go at a pasting in the event that they devote in such finances. The standard deviations deliberated shows the risks implicated in investing in these ventures (Bühler, Hax, & Schmidt,2009). From the investigation, it is less risky to devote in fund of 3 months return since its standard variation is less than one and quite insignificant. That means that the variations in terms of the proceeds will be less. This notion assures stability in the receipts of the proceeds from the communal fund.
Another most imperative tool that could be inculcated in forecasting the income of the corporation is the use of the degeneration analysis. Here we gaze at the initial venture that a person would desire to input into the venture at a given time. The early investment becomes a utility of the three charges of returns. Let’s assume theoretically that a shareholder invests in the funds concurrently to come up with the subsequent data.
|INVESTMENT ($)||3-months Return||1-year Return||3-year Return|
From the statistics we can get a degeneration line that will relate the speculation to the various proceeds in the three categories of episodes. This could be completed by excel. The investment becomes the reliant variable (y) and the proceeds become the autonomous variable, x1, x2, and x3.
When projecting on any rate of arrival with the information of the amount of outlay, one is able to forecast this rate by replacing the values into the deterioration equation so far coined. This study aims to scrutinize the comparative routine of open-ended tax leaning growth and dividend plans in USA. To evaluate the presentation of funds an illustration of 18 schemes has been selected on the foundation of monthly returns contrasted to benchmark returns. For these purpose arithmetical tools like standard deviation, average, beta, co-efficient of fortitude, unsystematic and systematic and risk and the risk adjusted presentation measures recommended by Sharpe, Jensen Treynor, and Fama‟s measures are engaged (Balakrishnan, 2010). The comeback analysis reveals that enlargement schemes performed enhanced as compared to surplus schemes when appraise to the yardstick. (Daníelsson, 2011)Whereas the payment schemes are more impulsive as compared to the development schemes, the beta charge of approximately all the plans is less than one which specifies that these are suspicious schemes in nature and less responsive to the marketplace forces. It is established that only 44 percent growth schemes achieved better according to Treynor, Sharpe, and Jensen procedures. On the foundation of R2, the systems are well expanded which reduced the random risk. on the other hand, the funds are found to be deprived in earning improved proceeds either adopting promotion or in selecting under quoted.
From the analysis of the company it is very evident that the company has strong financial framework. Given the positive net present value of the various discounted cash flow postulated, it shows that the company is deemed to increase the shareholder’s wealth in a higher stance. Additionally, the company seems to have a good management of the health operational expenses. This is seen by the increase profitability of the company with keen attention on the high gross profit that the company has depicted for the years analyzed. The main economic factors that affect the institution are the operational efficiency which stems from the hosting of very many universities that use it as a learning center. This has disallowed the employment of various professionals in the healthcare center who are expected to exhibit high proficiency. In general, the company has exhibited a high financial standing.
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