The Johns Hopkins Hospital has a mission to set the standard of excellence in patient care and improve health globally. It provides top-ranked specialty care like neurosurgery and endoscopy. While its financial ratios showed strong performance in 2011, its debt ratio increased to 65% by 2012 due to investments in new facilities and technology. To maintain its leadership, Johns Hopkins aims to continue providing language services to patients and partnering with insurers while reducing debt through strategic sourcing.

1. By: Fozia Yousaf

2.  The mission of The Johns Hopkins Hospital is
to improve the health of our community and
the world by setting the standard of
excellence in patient care.
 Video on the New Endoscopy Unit at John
Hopkins shows you some features of the
hospital
http://www.youtube.com/watch?v=14ceHlS-
_Hs

3.  Excellence-patient’s safety
 Discovery-new medical procedures
 Leadership-solid mission
 Integrity-Honest and moral values
 Diversity- foreign languages professional
interpreters
 Inclusion-team oriented
 Respect- for patients, family, staff members

4.  It is not for profit organization incorporated
in the states of Maryland to formulate policy
among, provide centralized management

5.  Spiritual Services
Our full-time pastoral care team is there when you need
them.
 Professional Interpreters: who speak more than 30 languages:
 Spanish, Arabic, Korean, Chinese-Mandarin, Russian, Nepali,
Hindi, French
 Neurosurgery
 Endoscopy Unit
 Medical Student Training

6.  Cash an cash equivalents/current liabilities
 2011: 153,388/124,995= 1.22
 2012: 41,074/162,625=2.52
 This shows that it has made an improvement
in 2012 because the hospital will quickly
repay its short term debt compared in 2011
due to many grants received from the state
and federal government for research
development

7.  2011: 330,941/1,730,277= 1.91
 2012: 78,384/1,791,899=4.4
 These two ratios give us an idea of the
company’s ability to pay back its short term
liabilities( debt and payables)
 The higher the current ratio the more capable the
company is of paying its obligations.
 If a ratio is under 1 means the hospital cannot
pay if its obligations and shows it is not a good
financial health
 So in 2013 it made a rapid increase to 4.4 which
shows its financial health is doing better than
compared in 2011 when it was 1.91.

8.  2012: 1,798,380/2,769,848=0.649 ( 65%)
 2011: 1,361,378/2,571,300=0.529 (53%)
 This is measuring John Hopkins's leverage.
 The higher the ratio means it will have a greater financial risk.
 In 2011 the hospital did not have as much expenses compared
to 2012 in making the new endoscopy unit with expensive
waiting room having fish tanks for the kids to watch and enjoy
 Created technology features that showed how their loved ones
are doing through their care process and being well informed
 In 2012 there was more demand in medical procedures with liver
treatment and neurosurgery so the debt level increased to 65%
because the hospital got their payments from their patients and
the third party payers which made the hospital in a better
financial status in 2011 than 2012

9.  2012: 1,791,899/2,769,848=0.65 (65%)
 2011: 1730277/2571300=0.67(67%)
 This ratio measures the John Hopkins's
profitability by revealing how much profit a
company generates with the money
shareholders have invested.
 We can see that in 2011 the hospital achieved
to get 67% and 65% in 2012. This shows that
in 2011 that it was generating higher profits
than in 2012 annually because of the supply
and demand factor.

10.  2012: 78,384/1,791,899=0.0437 (4.4%)
 2011: 330,941/1,730,277=0.19 (1.9%)
 John Hopkins total margin has increased in
2012 due to the lower expenses. This shows
that the hospital makes 4.4 cents on each
dollar of revenue. The total margin measures
the ability of the organization to generate
revenues from all the sources and to control
expenses.

11.  2012: 9,928/1,791,899=0.0055 (0.6%)
 2011: 243,404/4,644,571=0.086(8.6%)
 This shows if a company's margin is increasing, it
is earning more per dollar of sales. The higher
the margin, the better.
 We can see in 2012 the hospital decreased to
0.6% because of the accrued pension benefit
costs for their employees
 The hospital’s operating margin of 8.6% in 2011
means that it made 8.6% (before interest and
taxes) for every dollar of sales due to investment
securities that the hospital had from bonds and
grants.

12.  Return Ratio is in 2011 was 67% 2011 and
2012 it was 65%
 Shows they have a good amount of cash,
short term investments from funds, private
partnerships, patient accounts receivable and
other investments from research
development

13.  John Hopkins regained the top spot in the U.S
News and World Report’s annual rankings of
American Hospital’s placing in first in five
medical specialties.
 Ranked #1 for 21 years and the leadership of
John Hopkins Medicine have credit to the
researchers, clinicians, nurses and hospital staff,
caregivers for the remarkable standing
 CEO Paul B. Rotherman states “ our hospital’s
standings in the specialties ranked by U.S News
reflect the strong performance and historic
leadership of our institution

14.  Debt Ratio was 53% in 2011 and that is high
and because of providing the top expensive
technology procedures for neursuregery, liver
treatments, and endoscopy for adults, the
medical equipment for complex surgeries
that require MRI scanner during surgery to
update any changes.
 In 2013 it increased to 65% and this ratio
shows that it is at a higher financial risk and
the hospital needs to decrease this debt ratio

15.  Continue the Service for Foreign Language
Interpreters for patients and for their family members
 Beneficial for people who cannot speak English
 Continue its agreements with third party payers like
Medicare, Medicaid, Blue Cross and Blue Shield of
Maryland that provide for payments to John Hopkins
 The hospital needs to decrease this debt ratio of 65%
by doing some market research on their medical
products where they can purchase the same ones at a
lower cost. Talking to different vendors and see what
kinds of deals they have in the market.