#1 Service companies deliver “service” for a price. What we “sell” in healthcare can’t be put in a bag and carried off. So let’s think about service in this way: our staff/employees deliver the services, so we are essentially selling our talents, education, experience, compassion, i.e. everything that we as individuals bring to the table. We are providing the resource, health care, that people seek.

So, it’s important that employees are happy and feel good in their work environment. Employees functioning at their optimal level is so important in the service industry. I’d like you all to take a look at this you tube video from Vanderbilt Hospital, where higher employee satisfaction was obtained by implementing a very creative solution. Not only did employees feel better, but so did their patients and families in the ER. Please take a look: https://www.youtube.com/watch?v=8tDIDpscnLw

For print of the audio, click the closed caption icon on the right hand side of the bottom bar under the video

The emergency room workers certainly are “service” employees. And very specialized at that. Someone, or perhaps a team of employees, did a good job gaining success in their attempt to increase employee satisfaction with a non-traditional approach.

Class: what did you think about the content of the video? What thing(s) did you notice about customer service as you watched the video?

#2 Now that we understand the various accounts, and general sections of the balance sheet, then we can look further into the financial data by studying ratios. Analyzing the ratios sometimes requires thinking beyond a general rule. For example the current ratio is healthy above 1, and higher numbers are good except there can be potentially adverse effects to investors if the ratio is too high and cash is sitting around not making money for the business.

I bring up the point above so that you will understand that a reviewer of financials must think through the data even when using ratios which are effective tools. Please take the time to review this video: https://www.youtube.com/watch?v=XnL6Gom7N3w

For print of the audio, click the closed caption icon on the right hand side of the bottom bar under the video screen. I think the information in the video is excellent because it not only explains ratios but it also lets you see data from real balance sheets that you are now familiar with.

All: After viewing the video do have any new perspectives on ratios or balance sheet information? Please share.