Healthcare Finance Analysis Project

REQUIRED: WRITTEN PROJECT Guidelines: 1. Review the most recent annual report for two public healthcare organizations where you can obtain financial reports on. The reports should contain at least three years of income statement data and two years of balance sheet data. You will pick one company to be your base organization for comparative purposes. 2. Analyze at least 3 (three) items on the income statement for your base organization that would be important to a stakeholder, and discuss whether your organization’s performance related to these items appeared to be improving, deteriorating, or remaining stable. Justify your answer. 3. Analyze at least 3 (three) items on the balance sheet for your base organization that would be important to a stakeholder, and discuss whether your company’s performance related to these items appeared to be improving, deteriorating, or remaining stable. Justify your answer. 4. Analyze your base organization’s investing and financing activities for the most recent year as identified in the statement of cash flows, specifically identifying the two largest investing activities and the two largest financing activities. Discuss whether you agree or disagree with the investing and financing strategies that your organization appears to be employing. 5. Identify 2 (two) items not included in (or derived from) the financial statements that you think would be important to someone considering when reviewing your organization. Discuss your reasons for believing that these two items about the organization would be important in a stakeholder’s decision. (Hint: you might want to consider items discussed in other business classes.) 6. Compare your base organization’s financial statements with those of the second organization in the same industry. If you were making a decision to invest, partner with or invest your health in one of the two organizations, which organization would you choose? Why? (Note: your answer in this section must include some financial issues, but your answer need not be limited to a discussion of financial issues.) Outline: 1) Executive Summary / Introduction 2) Overview / background information theorganizationand the healthcare industry. This should include: a) A summary of theorganization’s history b) The firm’s mainorganization’s and competition c) Information on top management and management compensation. d) Anything else you feel is important. 3) A financial analysis which should include: a) Income Statement b) Balance Sheet c) Statement of Cash Flow d) Other Items 4) Comparison of 2organizations 5) A conclusion including your recommendation 6) A bibliography that reveals all sources of information you used. a) A link to your twoorganization’s onlineannual reports b) Other sources reviewed Notes: 1. Your analysis must include page references to relevant portions of the annual reports. Your report must also contain appropriate quotes for other materials and appropriate citations for material taken from sources outside the financial statements. 2. Your analysis is limited to 6 (six) pages, and must be typed, double-spaced, and have at least a 10 or 12-point font. 3. The assignment is due next week on Thursday by 6 pm GRADING RUBRIC The written projects are worth 100 points and will be graded as follows: First, the projects will be reviewed for compliance with the basic requirements and for composition. Any projects submitted without the entire annual reports for both companies being discussed, without appropriate page references to the relevant portions of the annual reports, without appropriate highlighting of the relevant portions of the annual reports, without appropriate citations for material taken from sources outside the annual reports, and/or with excessive composition errors will be docked 25 points out of 100 available points. You will receive 25 points for satisfactory compliance of this requirement. Second, the papers will be reviewed for content and will be graded using the following rubric: 66-75 points: The paper is well written, free of grammatical and other writing errors, and well organized. The report addresses each of the issues specified in the requirements, uses appropriate examples to illustrate concepts discussed, and integrates the annual report data with the narrative. The report focuses on important items, demonstrates a thorough understanding of the relationships among financial statement data, and is cohesive. 60-65.5 points: The paper generally is well written but may have minor grammatical or other writing errors or lack smooth transitions. The report addresses the issues specified in the requirements, demonstrates understanding, and focuses mainly on important items, but does not fully synthesize the material being discussed, and/or does not integrate the annual report data with the narrative. 52-59.5 points: The paper does not have excessive grammatical or other writing errors. The report addresses the issues specified in the requirements, but demonstrates only moderate understanding, and/or lacks integration. 46-51.5 points: The paper does not have excessive grammatical or other writing errors. The report addresses the issues specified in the requirements, but demonstrates only minimal understanding of one or more of the issues. 39-45.5 points: The paper is acceptable after initially requiring resubmission due to failure to comply with the basic requirements, excessive composition errors, or failure to demonstrate understanding of two or more of the issues required to be discussed. 0 points: The paper fails to meet the basic requirements, has excessive composition errors, and/or fails to demonstrate understanding of two or more of the issues required to be discussed after a first resubmission.