Sharp Healthcare, Article Review Example

The Sharp Healthcare documents contains the financial and social information for the company throughout their operational year. The regular HCA Holdings documents are the Form 10-K form display a document meant for investors and financial institutions. Within its document, it includes their risks factors, business history, properties, legal proceedings, financial statements and information, and company information that includes governance, and executive staff. (HCA Holdings 10K, 2012)  The HMA documents reveal largely identical information that HCA Holdings relinquishes in their Form 10-K, but theirs is presentedin addition to the company’s own message to their shareholders and the public with financial and company highlights throughout the year. (HMA Annual Report, 2011) Where Sharp Healthcare documents differ are that they provide a more complete set of information. The information includes financial, company history, plan of action, bond information since unlike the other companies they are non-profit, and information for taxes, legality, and auditors. The documents provide more financial information for their donors, as well as thorough explanation of use of funds, and strategic plan for the company. The sections not seen on the other forms include bond information, disclosures on economic activity, required compliance, and reporting hospital disclosures, and Book-Entry Only System that is specific to non-profit organizations.

In their strategic plan, they outline their original strategic plan in 1999 that entails their effort to focus on a successful stand-alone integrated health care delivery system. They focused on six pillars, Quality, Service, People, Finance, Growth, and Community to coincide with their company goals. (SHARP HC Bond Filing, 2011)  Their strategic plan involves a top-down approach that identifies their direction and identification of their goals, and a bottom-up approach based on external analysis of issues and opportunities. According to their strategic plan it is to ensure that they incorporate; financial; strategic; technology; human resources; quality planning; philanthropy; and marketing to make Sharp HealthCare a market leader. (SHARP HC Bond Filing, 2011) This is important for a non-profit competing with for profit organizations that have more funding and more shareholders. Sharp HC total market share is 27.4% of impatient market share, with 77,196 discharges, and a 70.2% occupancy rate. (Sharp HC Bond Filing, 2011) This has increased over the past decade, where they are the market leader within the county. The trends in the length of stay are that patients stay no more than 6 days, with Sharp Chula Vista the smaller group, reporting the highest rate with 6.67. The occupancy was for Sharp Memorial with the most licensed beds around 76 percent, Sharp Chula Vista the smallest around 81 percent, and Sharp Grossmont declining around 63 percent, although they saw the most emergency room visits.

The financial ratios of any company help investors, the company, and the public give a financial outlook on the health and vitality of the operations within the year and for the future. In class, we discussed several financial ratios that apply to businesses. For non-profits, the financial ratios are largely the same. For Sharp HealthCare, the financial ratios are based on their annual report for 2011. The financial ratios for Sharp HealthCare include the Total Margin Ratio in 2010 of .06 with the net income of $153,875 divided by the total revenue of $2,218,817. The Return on Assets for the company in 2010 was 0.08:1, by dividing the net income by the total assets of $1,888,632. The Debt to Assets Ratio for the company in 2010 was 49% based on the total debt that was $926,444 divided by the total assets of $1,888,632. The Fixed Asset Ratio for Sharp HealthCare in 2010 was 163.85 based on the Net patience service of $1,431,551 and PPE of $8,737. The Total Asset Turnover for Sharp HealthCare in 2010 was 1.17 based on the total revenue divided by the total assets.

References

HCA Holdings Inc. 10K Form. (2012) Securities Exchange Commission.

HMA Annual Report. (2011). Health Management Associates.

SHARP HealthCare Bond Filing. (2011). ABAG Finance Authority for Nonprofits Corporation.