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1. Using your answer from question 1 in part 1, which healthcare system has a healthier operating margin based solely on the profit or loss? When you look at the component revenues and expenses for each system, are there any expenses or revenues from either system that you would identify as a financial concern (e.g. a high level of uncollectable service fees)?
- Looking at 2013, EMHS has a healthier operating margin than that of Riverside; the former having an operating profit of $38.3Mn while the latter has an operating loss of $10.1Mn. In 2012, Riverside has a positive operating profit. One reason why it has incurred an operating loss in 2013 is a steep increase in ‘Services and Other’ and ‘Supplies’. It 2013, these expenses incurred a combined increase of $53.3Mn....
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