Cases in Healthcare Finance CASE 31 QUESTIONS RIVER COMMUNITY HOSPITAL (B)

For this assignment, read Case Study 31, Riverview Community Hospital (B) in the Cases in Healthcare Financetextbook (pp 217-219). Type the answers to the following questions in a Word document and upload for grading:

1. To begin, review the spreadsheet model (linked above) paying particular attention to (1) assumptions currently embedded in the model, (2) how the financial forecasts are developed, and (3) how financing feedbacks are handled. Briefly describe the model and its assumptions.
2. Now, disregard the forecasting results supplied with the model.
   • Use your own assumptions to develop the hospital's forecasted financial statements. Be sure to analyze your results from the perspectives of both accounting consistency and financial feasibility.
   • Use the current industry comparative data given in Case 1 to help assess the hospital's projected financial condition. Summarize your results in a table that shows key financial ratios, retained earnings, and external financial requirements (if required) for each year, along with five-year totals for earnings and financing.