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Chapter 8: Assessing Financial Health

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instructor material

DOI:

10.1891/9780826179135.0008

Authors

  • Knighten, Mary Lynne
  • Waxman, KT

Abstract

This chapter discusses advanced financial information useful to nurses and nurse leaders. It presents selected indicators based on their applications as organizational performance measures. The chapter describes some relevant accounting concepts to give nurses the basic knowledge necessary for reviewing financial statements. It explains basic principles for reviewing financial statements in the context of inpatient and long-term care facilities. The chapter presents commonly used financial ratios to help nurses assess the financial health of a hospital or other business. The chapter focuses on the nurse intrapreneur, who assesses the financial health of the employing institution in order to improve profitability and cost control.