Mountain West Medical Center
Research Paper
Columbia Southern University
Healthcare Finance
Mountain West Medical Center Financial Standing
Mountain West Medical Center (MWMC), a non-profit healthcare system with a 125-bed
hospital, multiple clinics, and an outpatient surgery center, serves a growing population in a
somewhat remote area. Competition within the area is limited to independent providers and small
clinics. Most specialty and complex services are referred to providers outside the service area.
After a hired consultation on the organization’s management structure and strategic
objectives was conducted in 2016, significant changes to the organization were implemented in
2017 resulting in fewer management level employees and a five-year strategic plan to reduce
costs and increase value.
The organization was somewhat mismanaged financially prior to the 2017 reorganization,
but the addition of skilled, experienced financial managers promises an optimistic forecast.
Throughout the changes, MWMC maintained a Standard & Poor’s AA bond rating (excellent)
and fundraising was robust.
MCMW is especially interested in maintaining their current financial standing, while also
preparing for future strategic investments. Long-term debt financing, therefore, is at the top of
mind for the board of directors and administrators. Given that liquidity is “a key factor in
assessing a company’s basic financial health” (Maverick, 2020), MCMW can confirm their
financial health by calculating liquidity using the current ratio. The current ratio is the difference
between current assets and current liabilities. For MCMW in 2020, this equaled 14.8. Given the
industry benchmark of 2.0 (Ellison, 2017), MCMW can be considered in good health, with a
high rate of liquidity.
, Balance Sheet, Income Statement and Statement of Cash Flows
The balance sheet provides a snapshot in time of MWMC’s assets, liabilities, and equity;
in other words, it shows the viewer the cash balance available as of the identified period end
date. As is typical of balance sheets, MWMC’s ends on the last day of the accounting period, in
this case the last day of the calendar year for the years ending 2019 and 2020. The balance sheet
provides information on the financial position of a company at a point in time by displaying the
value at the time of the total assets, liabilities, and equity.
(All succeeding financial statements for Mountain View Medical Center are displayed in
thousands. The balance sheet is shown for the periods ending December 31.)
Research Paper
Columbia Southern University
Healthcare Finance
Mountain West Medical Center Financial Standing
Mountain West Medical Center (MWMC), a non-profit healthcare system with a 125-bed
hospital, multiple clinics, and an outpatient surgery center, serves a growing population in a
somewhat remote area. Competition within the area is limited to independent providers and small
clinics. Most specialty and complex services are referred to providers outside the service area.
After a hired consultation on the organization’s management structure and strategic
objectives was conducted in 2016, significant changes to the organization were implemented in
2017 resulting in fewer management level employees and a five-year strategic plan to reduce
costs and increase value.
The organization was somewhat mismanaged financially prior to the 2017 reorganization,
but the addition of skilled, experienced financial managers promises an optimistic forecast.
Throughout the changes, MWMC maintained a Standard & Poor’s AA bond rating (excellent)
and fundraising was robust.
MCMW is especially interested in maintaining their current financial standing, while also
preparing for future strategic investments. Long-term debt financing, therefore, is at the top of
mind for the board of directors and administrators. Given that liquidity is “a key factor in
assessing a company’s basic financial health” (Maverick, 2020), MCMW can confirm their
financial health by calculating liquidity using the current ratio. The current ratio is the difference
between current assets and current liabilities. For MCMW in 2020, this equaled 14.8. Given the
industry benchmark of 2.0 (Ellison, 2017), MCMW can be considered in good health, with a
high rate of liquidity.
, Balance Sheet, Income Statement and Statement of Cash Flows
The balance sheet provides a snapshot in time of MWMC’s assets, liabilities, and equity;
in other words, it shows the viewer the cash balance available as of the identified period end
date. As is typical of balance sheets, MWMC’s ends on the last day of the accounting period, in
this case the last day of the calendar year for the years ending 2019 and 2020. The balance sheet
provides information on the financial position of a company at a point in time by displaying the
value at the time of the total assets, liabilities, and equity.
(All succeeding financial statements for Mountain View Medical Center are displayed in
thousands. The balance sheet is shown for the periods ending December 31.)
