​​​​​​​ Financial Tools

The FHD provides a “shared source of truth”, which offers information about organizations’ financial health using agreed-upon, industry-standard metrics, available province-wide. As such, hospitals, government, and the OHA can all operate from the same baseline playbook. Additionally, the FHD helps to improve data transparency and data quality by using information reported provincially by all hospitals in a consistent manner, which is then shared across authorized users.

To enable more tailored comparisons, users can benchmark within peer groups as well as use built-in customization to create sub groups of the specific organizations that are of greatest interest. This can help organizations identify opportunities for improvement and develop an understanding of their performance over time against a select group.

With a balance between operational (P&L) and balance sheet (B/S) indicators, the FHD is relevant for providing a picture of the state of an organization’s solvency, liquidity, and ongoing performance.

Drill own to indicators

Drilldown features available through the dashboard allow organizations to examine and present their unique circumstances. By tracking financial metrics, the FHD tool provides clean, reliable data that offer a high-level picture of an organization’s performance in important areas. Additionally, the tool allows users to access deeper levels of data for a closer investigation of an organization’s performance. For example, if an organization’s Operating Margin is trending worse, perhaps benchmarking in the bottom 25th percentile, a user can drill down into the components of revenue and expenses to identify where the largest change is and compare this against benchmark organizations.

Financial Health Indicator Corelations

Current Ratio vs. Operating Margin - A scatterplot that shows the interplay between how a hospital performs on Operating Margin correlated with Current Ratio. For organizations in the bottom-left quadrant, this indicates risk in terms of profitability and liquidity.

Current Ratio vs. Total Margin - A scatterplot that shows the interplay between how a hospital performs on Total Margin correlated with Current Ratio. For organizations in the bottom-left quadrant, this indicates risk in terms of profitability and liquidity.

Debt Ratio vs. Debt Charges - A scatterplot that shows the interplay between a hospital’s Debt Ratio correlated with Debt Charges to Revenue. For hospitals with a high debt ratio and high debt charges to revenue rate (top right quadrant), this could indicate possible solvency risks, whereas the more leveraged the hospital, indicates a declining ability to meet financial obligations.

Equipment Additions to Amortization of Equipment Ratio vs. NBV as a percentage of book value - A scatterplot that shows the interplay between a hospital’s NBV percent correlated with their amortization ratio. If a hospital’s scope of services remains unchanged (or grows) and it is not replacing equipment appropriately, the impending future costs of capital asset repairs and replacement could restrict its flexibility, thereby putting pressure on other liquidity, solvency and profitability measures. At-risk hospitals fall in the bottom-left quadrant.

Occupancy Rate vs. ALC Rate - A scatterplot that shows the interplay between a hospital’s Occupancy Rate correlated with ALC Rate performance. Those in the top-right quadrant are at or over capacity with a significant percentage of their beds occupied by ALC patients, which restricts patient flow and contributing to high wait times.

 

To learn more about the OHA’s FHD, please contact [email protected]