Milestone 4 Financial Budget And Justification Ardent Health Partners

Milestone Four: Finance, Budget, and Justification Ardent Health Partners, Inc. is the fourth largest privately held, for-profit operator of hospitals and a leading provider of healthcare services in the United States. As a for-profit healthcare industry, Ardent works to find ways to improve budgets and expand healthcare coverage for urban communities.1,3 To evaluate Ardent’s financial statements, this proposal will utilize balance sheet and cash flow statements of the past 3 years. The balance sheet presents a summary of the organization’s assets, liabilities, and net assets from 2021-2023, along with the first quarter of 2024. 4.7. Statement of cash flow describes how cash is generated and used during the accounting period shown at the beginning

These resources could be sold into a cash value in the future or are used to produce income or have an appreciating value over time. 10. In the hospital setting, acquiring new assets such as medical equipment or property will increase the total assets on the balance sheet. Conversely, if assets are sold or depreciated, the total assets will decrease. Liabilities are the organization’s legal obligations to pay its creditors, classified as current and noncurrent.4 The proposal involves taking on new debt and will increase the total liabilities on the balance sheet. Additionally, some of the debts from the balance sheet will be worked to be paid off and in turn will decrease the total liabilities. Equity represents the shareholders' stake in the company identified on a company's balance sheet.10 The proposal involves actions that increase retained earnings, such as improvements in operational efficiency. Conversely, if the proposal involved actions that decrease retained earnings, such as paying out large dividends, it would decrease the equity. 10. This proposal will include all three portions of the balance

This budget would include necessary items for the departments to provide quality care to patients. And evaluate the budget quarterly to see where we stand on the rolling budget. During these quartile budget evaluations, I would check to see where the budget currently stands with the understanding that some flexibility may be needed. Flexibility may be needed due to unforeseen circumstances such as temporary staffing, emergency repairs to the building or equipment, or unexpected patient census changes due to the pandemic. By evaluating the cash flow and balance sheet, we can calculate the working capital ratio, which is the difference between Ardent’s current assets and current liabilities. Ardent at the end of March 2024 is $2,293,792 total capitalization/ $1,183,683 total debt = the approximate working capital ratio of 1.947. Generally a working capital ratio of 1.5-2 indicates a company has a good hold of short-term