10K-Income Analysis Paper
10K-Income Analysis Paper
After reviewing the provided material, several lessons are learnt from the study material provided. Community Health Systems is one of the largest medical organizations in the United States, operating over 135 facilities in 29 states and England, totalling over 20,000 beds. CHS covers over 56% of the market, with many affiliated hospitals serving as the sole healthcare supplier. The firm had 162 hospitals when the books closed on December 31, 2012, including 157 regular hospitals and clinics, six mental hospitals, and one rehabilitation facility totalling 41,198 beds. The institution additionally operates approximately 110 surgical centres with well-trained personnel and a provision of quality healthcare services. Unlike any other, the healthcare industry’s income is determined by inpatient occupancy or (average duration of stay), the number of outpatient services and operations in the healthcare facility, and the processes necessary for both inpatients and outpatients. CHS derives 54.7% of its revenue from care delivery and other insurers (other than government insurance).
The expenses of complying with, and other burdens imposed by, such as other legislation or regulatory issues, can raise operational costs, cause disruptions or delays in system availability, and decrease patient volume. CHS may face audits or investigations concerning company compliance with these requirements from one or even domestic or foreign government authorities. A negative conclusion from any such inquiry or audit might result in liabilities, negative publicity, and a negative impact on our business. Other states that the company operates require approval before expanding medical facilities or improving the organization’s technology. The vertical analysis of the company suggests that the organization receives approximately 50% of its total earnings every financial year after all expenses and deductions.
The fundamental strategy that can be adopted to increase the financial performance of CHS is ensuring the reduction of expenditure by a decrease in the number of suppliers that the organization works with. Secondly, providing the maintenance of the innovative edge since technology is changing at an alarming rate, and the healthcare sector is not an exception (Scott et al., 2018). CHS can improve their profit margin by constantly upgrading its technology to meet international standards. Additionally, the management should strive to increase your hospital’s financial performance and avoid needless testing and supply consumption. They should also create measures and policies to increase customer satisfaction and decrease readmissions.
References
Scott, K., Beckham, S. W., Gross, M., Pariyo, G., Rao, K. D., Cometto, G., & Perry, H. B. (2018). What do we know about community-based health worker programs? A systematic review of existing reviews on community health workers. Human resources for health, 16(1), 1-17. https://link.springer.com/article/10.1186/s12960-018-0304-x