Issue link: https://beckershealthcare.uberflip.com/i/576097
49 FINANCE 40 Financial Benchmarks for Hospital Executives By Ayla Ellison H ere are 40 benchmarks related to one of the most important day-to-day areas hospital executives oversee — finance. Days cash on hand and days in accounts receivable by credit rating group Source: Fitch Ratings, "2014 Median Ratios for Nonprofit Hospitals and Healthcare Systems" report, August 2015. Median 1. Days in accounts receivable: 48.2 2. Days cash on hand: 203.4 "AA" rating 3. Days in accounts receivable: 47.4 4. Days cash on hand: 289.4 "A" rating 5. Days in accounts receivable: 48.1 6. Days cash on hand: 205.3 "BBB" rating 7. Days in accounts receivable: 50.6 8. Days cash on hand: 161.5 Below "BBB" rating 9. Days in accounts receivable: 49.8 10. Days cash on hand: 85.9 Hospital margins by credit rating group Source: Fitch Ratings, "2014 Median Ratios for Nonprofit Hospitals and Healthcare Systems" report, August 2015. Median 11. Operating margin: 3 percent 12. Operating EBITDA margin: 9.7 percent 13. Excess margin: 4.8 percent 14. EBITDA margin: 11.7 percent "AA" rating 15. Operating margin: 4.9 percent 16. Operating EBITDA margin: 11.5 percent 17. Excess margin: 7.6 percent 18. EBITDA margin: 14.7 percent "A" rating 19. Operating margin: 3.6 percent 20. Operating EBITDA margin: 10.3 percent 21. Excess margin: 5.4 percent 22. EBITDA margin: 12.4 percent "BBB" rating 23. Operating margin: 0.6 percent 24. Operating EBITDA margin: 7.7 percent 25. Excess margin: 2.4 percent 26. EBITDA margin: 9.5 percent Below "BBB" rating 27. Operating margin: 0.3 percent 28. Operating EBITDA margin: 8.1 percent 29. Excess margin: 0.4 percent 30. EBITDA margin: 8.9 percent Cash to debt percentage by credit rating group Source: Fitch Ratings, "2014 Median Ratios for Nonprofit Hospitals and Healthcare Systems" report, August 2015. Median 31. Cash to debt percentage: 141.8 "AA" rating 32. Cash to debt percentage: 201.7 "A" rating 33. Cash to debt percentage: 143.7 "BBB" rating 34. Cash to debt percentage: 89.5 Below "BBB" rating 35. Cash to debt percentage 52.2 Bad debt as percentage of patient revenue Source: Fitch Ratings, "2014 Median Ratios for Nonprofit Hospitals and Healthcare Systems" report, August 2015. Median 36. Bad debt as percentage of patient revenue: 5.3 "AA" rating 37. Bad debt as percentage of patient revenue: 4.5 "A" rating 38. Bad debt as percentage of patient revenue: 5.4 "BBB" rating 39. Bad debt as percentage of patient revenue: 5.7 Below "BBB" rating 40. Bad debt as percentage of patient revenue: 6.6 n