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Distress detectors: measures for predicting financial trouble in hospitals
Corbett A Price1, Andrew E Cameron, Devin L Price
1Kurron Shares of America, Inc, New York, USA.
Abstract:
Seven measures are indispensable to healthcare financial executives for assessing their organizations' financial well-being. Two are accrual based: Cleverley's Financial Strength Index Altman's modified Z score. The rest are cash-flow based: Operating cash flow ratio. Funds flow coverage ratio. Cash interest coverage ratio. Cash flow to total debt ratio. Total free cash flow ratio.