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Case Study 2

Satisfactory Essays

1. Create and interpret Commonwealth’s statement of cash flows for 2013. What information does it provide regarding the HMO’s sources and uses of cash over the past year? Statement of Cash Flows (2013):

(Millions of Dollars)

CASH FLOW FROM OPERATIONS

Income from operations
$20.7

Depreciation expense
5.0

Increase in premiums receivable
(3.7)

Increase in medical costs payable
3.9

Increase in payables/accruals
1.9

Net cash flow from operations
$27.8

CASH FLOW FROM INVESTING

Fixed asset acquisitions
($6.7)

Increase in marketable securities
($18.2)

Net cash flow from investing
($24.9)

CASH FLOW FROM FINANCING

Decrease in long-term debt
(12.9)

Net cash flow from financing
($12.9)

Net …show more content…

le
89.0%

Upper quartile
89.0%
WellLife
86.4%

WellLife

87.3%
Commonwealth
86.4%

Commonwealth
85.7%
Median
84.9%

Median

84.9%
Lower quartile
80.0%

Lower quartile
80.0%
Proxima
71.4%

Proxima

78.1%
State average
68.6%

State average
67.1%
State median
64.9%

State median
64.5%
Signet Healthcare
63.0%

Signet Healthcare
62.4%

Commercial Premium Revenue PMPM

2012

2013

Commonwealth
$127.82

Commonwealth $127.90
Proxima
120.68

Proxima

124.27
WellLife
108.68

State median
108.95
State median
108.32

WellLife

110.19
State average
101.17

State average
102.53
Sparta
88.41

Sparta

95.06
Signet Healthcare
39.86

Signet Healthcare
27.50

Medicare Revenue PMPM

2012

2013

Commonwealth
$449.37

Commonwealth $437.23
State median
426.18

State median
430.57
WellLife
406.57

WellLife

421.57
State average
365.12

State average
376.04
Sparta
N/A

Sparta

N/A
Signet Healthcare
N/A

Signet Healthcare
N/A
Proxima
N/A

Proxima

N/A

Commercial Inpatient Days per 1,000 Enrollees

2012

2013

Commonwealth
302.9

Commonwealth 266.4
State median
279.1

Sparta

248.9
State average
278.0

Proxima

248.9
Signet Healthcare
258.4

State median
248.8
Proxima
251.8

Signet Healthcare
248.8
WellLife
245.4

WellLife

246.0
Sparta
198.2

State

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