Efficiency of a Healthcare Business Operation Is Assessed by the Operating

question 15

Essay

Efficiency of a healthcare business operation is assessed by the operating margin ratio that divides net income by total revenues. Explain why total revenues are used instead of gross medical service revenues.

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Definitions:

Revised Model Business Corporation Act

An updated set of model laws intended to assist states in drafting legislation that governs corporate formation, operation, and dissolution.

Corporate Directors

Individuals elected by shareholders to oversee the management and make major decisions for a corporation.

Shareholders

Individuals or entities that own shares in a corporation and therefore have a claim on part of the company's assets and earnings.

Going Private

The process by which a publicly traded company is transformed into a privately held entity.