Question

What should you not look at when thinking of buying a hospital?

a) Operating costs
b) Patient satisfaction ratings
c) Debt and liabilities
d) Revenue trends

Answer 1

When thinking of buying a hospital, operating costs, debt and liabilities, and revenue trends should not be overlooked.

Step-by-step explanation:

When thinking of buying a hospital, there are several factors to consider. Three things that you should not overlook are:

1. Operating costs: These include expenses such as staffing, equipment, and supplies. It is important to understand how much it costs to run the hospital on a daily basis.
2. Debt and liabilities: Find out if the hospital has any outstanding debts or legal liabilities. This can have a significant impact on the financial stability of the hospital.
3. Revenue trends: Analyze the hospital's revenue trends over a period of time. Look for any patterns or fluctuations that could indicate potential financial risks or opportunities.

While patient satisfaction ratings are important, they should not be the sole determining factor when making a decision to buy a hospital. Other key financial considerations are crucial in making an informed decision.