Description
RAWAN BAJUNAID
HCM-520-Module: 13
Collapse
Pandemic Influence
Saudi Vision-2030 is a convention for changing a very effectively organized access to healthcare into a more patient-centered mode. With the coming of the pandemic, the calls for an urgent rethinking of health priorities and quick adoption of telemedicine and other digital health technologies have become unavoidable and peremptory. These effectively addressed immediate concerns regarding the pandemic and covered specific non-COVID healthcare needs, lessening the pressure on health facilities. As part of Vision 2030, the National Transformation Program (NTP) is concerned with improving healthcare delivery through digital health solutions, strengthening patient safety protocols, and reinforcing the health workforce (Abdulwahab Alkhamis & Shaima Ali Miraj, 2021).
There were even further investments in infrastructural enhancement for the critical areas of healthcare facilities as the pandemic showed the stark need for improvement in the healthcare system (Abdulwahab Alkhamis & Shaima Ali Miraj, 2021).
Barriers Caused by the COVID-19 Pandemic
The new pandemic changes have brought favorable conditions and, at the same time, barriers to the broader healthcare goals of the vision. The considerable stress on hospitals and healthcare workers has revealed weaknesses, including a lack of critical care facilities and labor in the healthcare infrastructure, from which timely care could not be offered to non-COVID patients, and the disruption of essential healthcare services. Many health system innovations queued to improve the system also had to be put on hold or delayed because of all the efforts to concentrate on managing the influx of cases of COVID-19. Adopting digital health solutions was also disrupted (Reimold et al., 2021).
If systems were to transition to the all-encompassing digital platforms, which are being delayed, managing the immediate surge in COVID cases could take priority. As a result, non-COVID treatment, elective surgeries, and preventive care were postponed, all of which will be detrimental to health outcomes in the long term (Reimold et al., 2021).
The Role of Healthcare Quality Improvement Specialists
QI specialists are to address the exposed gaps of the COVID-19 pandemic and ensure improved quality of care in the healthcare system of Saudi Arabia. They perform a pivotal role by identifying and dealing with critical issues that have considerably hindered patient access, care coordination, and preventive measures subjected to the COVID-19 pandemic. Taking thorough systems analysis, QI specialists can come up with evidence-based recommendations for targeting improvements in their health systems so that these are better prepared for any future emergencies. On their part, QI specialists drive the adoption of digital health innovations during the pandemic, including telemedicine and remote patient monitoring (Kerr et al., 2021).
Technological development continues to bring all innovations into routine health service delivery. Digital innovations must also make their inclusion into routine healthcare processes for health service continuity and advancement. This suggests that QI specialists also promote evidence-based practice with continued professional development and training of the health workforce to effect alignment and waste reduction in processes while improving safety and a patient’s well-being. With quality healthcare systems trained and updated using the latest knowledge and resources, QI specialists enhance the quality of care in a manner that is more patient-centered and efficient (Kerr et al., 2021).
References
Abdulwahab Alkhamis, & Shaima Ali Miraj. (2021). Access to Health Care in Saudi Arabia: Development in the Context of Vision 2030. Springer EBooks, 1(1), 1629–1660. https://doi.org/10.1007/978-3-030-36811-1_83
Kerr, H., Donovan, M., & McSorley, O. (2021). Evaluation of the role of the clinical Nurse Specialist in cancer care: an integrative literature review. European Journal of Cancer Care, 30(3). https://doi.org/10.1111/ecc.13415
Reimold, A. E., Grummon, A. H., Taillie, L. S., Brewer, N. T., Rimm, E. B., & Hall, M. G. (2021). Barriers and facilitators to achieving food security during the COVID-19 pandemic. Preventive Medicine Reports, 23(1), 101500. https://doi.org/10.1016/j.pmedr.2021.101500
[2:48 م، 2024/11/29] +966 56 646 9807: MARWA ALSAEED
COVID-19 Impact on Healthcare Safety and Quality in Saudi Arabia
Collapse
COVID-19 Impact on Healthcare Safety and Quality in Saudi Arabia
The COVID-19 pandemic has had a profound impact on healthcare systems around the world, forcing countries to rethink their existing safety and quality measures. For Saudi Arabia, which is undergoing significant reforms through Vision 2030—a strategic plan to diversify its economy and improve the quality of life for its citizens—the pandemic has prompted a critical reassessment of the healthcare sector. This crisis has exposed vulnerabilities in the system, requiring adjustments to healthcare safety and quality initiatives to address the evolving challenges.
Impact on Healthcare Safety and Quality Initiatives
Vision 2030 emphasizes improving healthcare standards, increasing accessibility, and enhancing service quality to ensure the well-being of Saudi citizens. However, the COVID-19 pandemic highlighted gaps in these plans. The overwhelming rise in cases put enormous pressure on healthcare infrastructure, exposing weaknesses in the current healthcare system. The pandemic underscored the need for more flexible and adaptive safety and quality initiatives to effectively respond to such crises. Key principles like resilience and preparedness, which are essential for mitigating such shocks, became central to managing the pandemic’s effects on the healthcare sector (Alsaeed et al., 2022).
Challenges Faced During the Pandemic
The COVID-19 pandemic introduced numerous obstacles to maintaining healthcare safety and quality in Saudi Arabia. One of the main issues was the sheer number of patients overwhelming healthcare facilities, staff, and resources. This surge, coupled with the uncertainty of the virus’s spread, made it difficult to maintain safety and quality standards. Moreover, the fast-paced nature of the pandemic exposed significant weaknesses in healthcare data collection and reporting systems, making it harder to track and assess the quality of care being provided. Other challenges included supply chain disruptions, shortages of medical supplies, and significant burnout among healthcare workers (Alqahtani et al., 2020).
The Role of Healthcare Quality Improvement Specialists
In addressing the barriers posed by the pandemic, healthcare quality improvement specialists have been instrumental. These professionals are skilled in assessing healthcare systems and developing strategies for improvement. Their responsibilities include identifying weaknesses in current practices, implementing evidence-based solutions, and ensuring compliance with safety and quality standards. In response to the pandemic, quality improvement specialists collaborated with healthcare teams to develop rapid response strategies, refine triage systems, optimize resource use, and improve communication channels. Additionally, they played a vital role in creating data-driven approaches to continuously monitor and improve healthcare delivery during the crisis (Almalki, 2021).
Another essential function of healthcare quality improvement specialists has been addressing the well-being of healthcare workers. The mental health challenges and fatigue experienced by healthcare professionals during the pandemic were significant. Quality improvement specialists advocated for programs to support healthcare staff, such as wellness initiatives, mental health resources, and strategies to combat burnout (Alharthy et al., 2021).
Conclusion
The COVID-19 pandemic has had a significant impact on healthcare safety and quality measures in Saudi Arabia, necessitating a reevaluation of existing strategies. The challenges posed by the pandemic, such as resource shortages and healthcare worker burnout, have highlighted the need for greater resilience and flexibility in the healthcare system. Healthcare quality improvement specialists have played a critical role in addressing these challenges, using data-driven strategies and principles of adaptability to ensure that healthcare systems can withstand such crises. Moving forward, as Saudi Arabia progresses toward its Vision 2030 goals, the lessons learned from the pandemic emphasize the importance of building a resilient, adaptable healthcare infrastructure that can continue to provide high-quality care in the face of future challenges.
References
Alharthy, M. S., Farsi, A. M., & Alshehri, A. H. (2021). The impact of COVID-19 on healthcare workers’ mental health in Saudi Arabia: A systematic review. Saudi Medical Journal, 42(5), 468-474.
Almalki, M. (2021). Enhancing healthcare quality during the COVID-19 pandemic: Insights from Saudi Arabia. International Journal of Healthcare Management, 14(3), 56-62.
Alqahtani, F. M., Abdulmajeed, I., & Alamri, N. (2020). COVID-19 response in Saudi Arabia: Challenges and innovations in healthcare systems. Health Systems, 9(1), 42-49.
Alsaeed, M., Younis, M. Z., & Al-Moamary, M. (2022). Vision 2030 and the transformation of Saudi Arabia’s healthcare system: Opportunities and challenges. Journal of Health Policy and Planning, 37(4), 321-327. https://doi.org/10.1093/heapol/czab022
[2:49 م، 2024/11/29] +966 56 646 9807: HCM550
[2:50 م، 2024/11/29] +966 56 646 9807: رد على الطالبة الاولى
[2:51 م، 2024/11/29] +966 56 646 9807: NAWAL ALGHANMI
Policy Development
Collapse
Policy Development
Healthcare policy making enroll key components, which are policy analysis, in which the issue is identified then policy development, in which policy is drafted. The latter component is policy implementation, in which actions are taken to implement these, and lastly, the policies are evaluated to see their impact. These components all work together with the aim of optimizing policies for the healthcare sector. The policymakers are the key component that developed effective policies to promote better health outcomes for all individuals. Effective healthcare policy collaborative approach among different stakeholder’s implements policies to address the complex challenges (Blank et al., 2017).
Policy development is the critical process in which the starting point is problem identification. The policy makers identify the issues that require policies. After identifying the issue, the policymakers define different solutions and alternatives regarding the issues. Each solution is then tested for its effectiveness through cost-benefit analysis, feasibility testing, et cetera. The next issue is bringing it to a final decision regarding a policy. In this decision-making, the best alternative is selected on the basis of evidence, political acceptability and stakeholders voting (Sajjad & Qureshi, 2018).
Once policy is approved, it is translated into actionable steps through legislation. The legislation provides resources to ensure successful implementation. Healthcare organizations are responsible for implementing the policies. The implementation may face the challenges such as insufficient resources, resistance from stakeholders and unintentional consequences that requires continuous adjustments and modifications (Sajjad & Qureshi, 2018).
Policies are dynamic and require continuous adjustments to shape it according to the changing circumstances. In this regular assessment of the policy effectiveness is made to adjust the outcomes on the basis of evaluation the policy makers expand the policies or terminate the policy. In order to ensure that it remain relevant and effective (Fadlallah et al., 2019).
Transition from policy to a legislative proposal
Presenting policy idea to the legislative proposal is a very critical component that is informal the policy. Policymakers and advocacy groups detailed proposals based on the policy framework. The expert input, public consultations and stakeholders’ meetings ensure the proposal is well-rounded to address the diver’s perspectives of the problem. The draft proposal is made to undergo reviews by legal experts and policymakers. The public feedback mechanisms are enrolled for the development of the policy (Fadlallah et al., 2019).
The proposal is introduced to the legislative body, and the formal process starts here as a bill. The documentation is made regarding the policy’s effectiveness to justify the necessity of the policy limitation and its feasibility. The legislative body reviews the proposal, debates on it, and either accepts it or rejects it. When the bill securely gets majority approval, it is made into a law and enters into the implementation process. These procedures transfer policy into law (Fadlallah et al., 2019).
In conclusion, the policy development implementation modification is a complex process and a dynamic cycle that requires careful consideration, collaboration and continuous evaluation. An effective policy involves identifying and addressing healthcare-related issues. The success of policymaking depends upon the policymakers and their efforts to make effective and efficient policies for the well-being of the community participants (Fadlallah et al., 2019).
References
Blank, R. H., Burau, V., & Kuhlmann, E. (2017). Comparative Health Policy. Macmillan Publishers.
Fadlallah, R., El-Jardali, F., Nomier, M., Hemadi, N., Arif, K., Langlois, E. V., & Akl, E. A. (2019). Using narratives to impact health policy-making: a systematic review. Health Research Policy and Systems, 17(1). https://doi.org/10.1186/s12961-019-0423-4
Sajjad, R., & Qureshi, M. O. (2018). An assessment of the healthcare services in the Kingdom of Saudi Arabia: An analysis of the old, current, and future systems. International Journal of Healthcare Management, 1(1), 1–9. https://doi.org/10.1080/20479700.2018.1433459
[2:53 م، 2024/11/29] +966 56 646 9807: رد على الطالبة الثانية
[2:54 م، 2024/11/29] +966 56 646 9807: SHOROUK AHMAD
Policy Development and Legislative Transition in Saudi Arabia: A Case Study of Renewable Energy
Collapse
Policy Development and Legislative Transition in Saudi Arabia: A Case Study of Renewable Energy
Policy-making involves a series of steps to address societal challenges, including problem identification, solution development, evaluation, implementation, and adaptation. Saudi Arabia’s Vision 2030 exemplifies this process, with the country pushing for renewable energy. This discussion explores the policy development process, its transition to legislative proposals, and practical challenges faced, drawing from academic literature.
Policy Development in Saudi Arabia
Policy-making begins by identifying a pressing problem that necessitates action. Saudi Arabia’s Vision 2030 pinpointed economic diversification as a priority, given the risks associated with an overreliance on oil for economic stability. This dependency was deemed unsustainable due to fluctuating oil prices and environmental challenges. Policymakers acknowledged the need for alternative energy sources to foster sustainability and economic resilience (Alsufyani et al., 2020). During the initial stage, they collected data and collaborated with stakeholders to define the problem clearly. As Kanger et al. (2020) note, setting clear objectives and engaging stakeholders are vital steps in crafting effective policies. The issue in this instance was identified as excessive dependence on oil and the absence of a robust renewable energy infrastructure. Policymakers considered options like solar and wind energy projects to determine their viability in Saudi Arabia.
Following problem identification, potential solutions were carefully evaluated based on factors such as cost, environmental impact, and practicality. Aligning with global trends and addressing local needs, renewable energy initiatives emerged as the preferred solution. Hani (2020) highlights that successful policies strike this balance effectively. Under Vision 2030, Saudi Arabia introduced renewable energy projects, including the Sakaka Solar Plant and Dumat Al-Jandal Wind Farm. The evaluation phase involved expert consultation to align projects with the Kingdom’s economic and environmental goals, emphasizing the strategic importance of sustainable development initiatives.
Implementation of Policies
Policy implementation translates plans into actionable programs and initiatives, requiring institutional coordination and clear guidelines (Kim, 2023). In Saudi Arabia, the National Renewable Energy Program (NREP) was established to drive renewable energy development, supported by government-backed projects and partnerships with private sector entities. However, implementation does not mark the end of the policy process. Ongoing evaluation is essential to ensure policies remain effective and adaptable to changing circumstances (Elfakharani, 2022). For instance, Saudi Arabia revised its renewable energy policies to attract foreign investments by streamlining licensing processes and enhancing transparency in project bidding. These adjustments demonstrate the need for flexibility and continuous improvement to address emerging challenges.
From Policy to Legislation
A well-crafted policy often progresses into a legislative proposal to solidify its enforceability. This transition begins with drafting regulations and laws that give structure to the policy. Hani (2020) highlights the importance of collaboration between legal experts and policymakers in the development of renewable energy policies. In Saudi Arabia, legislative drafts for renewable energy policies included energy tariffs and private sector partnerships, which were meticulously reviewed by bodies like the Shura Council to ensure effective national goals and legal requirements.
Securing public and private sector support is essential to the success of the legislative process. As Alsufyani et al. (2020) highlight, stakeholder engagement fosters trust and compliance through transparent communication campaigns. Saudi Arabia’s public awareness campaigns promoted renewable energy’s economic and environmental benefits, leading to widespread acceptance of proposed laws. Once approved, these laws were enforced by regulatory bodies, providing clear guidelines on investment terms, environmental standards, and project management, ensuring adherence to intended outcomes.
Challenges and Lessons Learned
Saudi Arabia’s renewable energy policy demonstrates the complexities of policy development and legislative transition. Several challenges emerged during the process, including resistance to change and the need for substantial financial investments. Kanger et al. (2020) suggest that successful policies require a balance between long-term vision and short-term adaptability. Despite these challenges, the Kingdom’s focus on stakeholder engagement and ongoing evaluation has contributed to the policy’s progress.
Conclusion
Policy development and legislative transition are dynamic processes that require careful planning, stakeholder engagement, and flexibility. Saudi Arabia’s renewable energy policy under Vision 2030 exemplifies these stages, from identifying the problem to implementing solutions and enacting supportive legislation. Drawing on lessons learned, policymakers can better address future challenges, ensuring that policies contribute to sustainable development and economic resilience.
References
Alsufyani, A., Alforihidi, M., Almalki, K., Aljuaid, S., Alamri, A., & Alghamdi, M. (2020). Linking the Saudi Arabian 2030 vision with nursing transformation in Saudi Arabia: Roadmap for nursing policies and strategies. International Journal of Africa Nursing Sciences, 13, 100256. https://doi.org/10.1016/j.ijans.2020.100256
Elfakharani, A. (2022). Evaluation and Comparison of the Electronic Contract in the Context of Legislations in Egypt and Saudi Arabia: An Explanatory Study. Law and Humanities Quarterly Reviews. https://doi.org/10.31014/aior.1996.01.02.7
Hani, A. (2020). An Outlook on the Implementation of Transfer Pricing Legislation in the Kingdom of Saudi Arabia. Revenue Law Journal, 27, 1-11. https://doi.org/10.53300/001c.14564
Kanger, L., Sovacool, B., & Noorkõiv, M. (2020). Six policy intervention points for sustainability transitions: A conceptual framework and a systematic literature review. Research Policy. https://doi.org/10.1016/j.respol.2020.104072
Kim, S. (2023). An Analysis on the Success Factors of Implementation System of Knowledge Sharing Program (KSP). Korea Association of International Development and Cooperation. https://doi.org/10.32580/idcr.2023.15.3.37
[3:01 م، 2024/11/29] +966 56 646 9807: HCM565
[3:02 م، 2024/11/29] +966 56 646 9807: رد على الطالبة الأولى
[3:03 م، 2024/11/29] +966 56 646 9807: RAHAF ALAHMADI
Financial Analysis
Collapse
Financial ratios are vital tools for assessing the financial health of organizations, including healthcare institutions. The debt-to-equity ratio, in particular, measures a company’s financial leverage and is a critical indicator of its risk level. In this discussion, we consider a hypothetical healthcare organization in Saudi Arabia with a debt-to-equity ratio of 1.3, analyze its implications, explore strategies to improve this ratio and discuss challenges faced during financial and operational analyses (Gapenski, 2015).
Debt-to-Equity Ratio of 1.3
A debt-to-equity ratio of 1.3 means that the organization uses 1.3 units of debt for every unit of equity. This ratio is a key indicator of financial risk, and its performance can be evaluated (Alikouzay, 2021).
Strengths
A ratio of 1.3 suggests that the organization is not overly dependent on debt, which may help it manage risks associated with financial obligations. In the healthcare sector, debt is often used to fund infrastructure, equipment, and service expansion. A ratio of 1.3 can be seen as a reasonable level of leverage that supports growth while maintaining a manageable risk profile (Alikouzay, 2021).
Weaknesses
A debt-to-equity ratio above 1 indicates that the company has more debt than equity, which could be considered risky. High levels of debt may result in increased interest costs, which can reduce profitability. This might also limit the organization’s ability to borrow more funds if needed for future growth (Alikouzay, 2021). Actions to Improve the Debt-to-Equity Ratio
The healthcare organization can take several steps to either reduce its debt or increase its equity base. The organization can raise additional funds by attracting new investors or issuing new shares if it is publicly listed. This would directly increase the equity portion of the balance sheet, improving the debt-to-equity ratio. The organization can focus on paying down existing debt, especially high-interest loans. This would lower the total liabilities and improve the ratio. The Saudi government, as part of its Vision 2030 initiatives, offers various subsidies and grants to support healthcare projects. These funds can be used to finance expansion without incurring additional debt, thus improving the debt-to-equity ratio (Borsa et al., 2023). Challenges in Financial Statement and Operating Indicator Analyses
Errors in data entry or inconsistencies in accounting practices across periods or departments can distort the analysis of financial ratios. Finding suitable benchmarks for comparison can be challenging, particularly in healthcare, where organizations may differ significantly in size, scope, services offered, and patient demographics. Operating indicators such as patient volume and cost per patient day can vary in their definitions and calculations. This lack of standardization complicates comparisons and trend analysis (Barbazza et al., 2021).
External factors, such as changes in the economy, healthcare regulations, or public health emergencies like the COVID-19 pandemic, can heavily influence both financial statements and operational indicators, leading to skewed interpretations. Financial statements do not capture important non-financial aspects such as patient satisfaction and employee turnover. These factors are crucial in assessing the overall performance and quality of care in healthcare organizations (Barbazza et al., 2021).
Conclusion
A debt-to-equity ratio of 1.3 for a healthcare organization in Saudi Arabia suggests a balanced but somewhat leveraged financial position. Additionally, conducting financial statements and operational analyses can be challenging due to data accuracy issues, benchmarking difficulties, and the impact of external factors.
References
Alikouzay, Z. (2021). Capital structure: Debt and equity decisions for firm performance – University of Twente Student Theses. Utwente.nl, 2(2). https://purl.utwente.nl/essays/86545
Barbazza, E., Klazinga, N. S., & Kringos, D. S. (2021). Exploring the actionability of healthcare performance indicators for quality of care: a qualitative analysis of the literature, expert opinion and user experience. BMJ Quality & Safety, 30(12), bmjqs-2020-011247. https://doi.org/10.1136/bmjqs-2020-011247
Borsa, A., Bejarano, G., Ellen, M., & Bruch, J. D. (2023). Evaluating trends in private equity ownership and impacts on health outcomes, costs, and quality: systematic review. BMJ, 382(1), e075244. https://doi.org/10.1136/bmj-2023-075244
Gapenski, L. (2015, March 1). Understanding Healthcare Financial Management, Seventh Edition (Aupha/Hap Book) (7th ed.). Health Administration Press.
[3:03 م، 2024/11/29] +966 56 646 9807:reply for dr
RE: Debt to Equity Ratio
Collapse
Thanks for your post. How do you think the hospital could best diversify revenue streams to improve its equity position while maintaining alignment with Vision 2030 goals
Debt to Equity Ratio
Name
Institutional Affiliation
Date
2
Debt to Equity Ratio
Introduction
This discussion uses an assumed debt-to-equity (D/E) ratio of 1.3 to assess Madina
National Hospital’s financial health. It looks at whether this is a good performance ratio,
looks at ways to improve it, and discusses the difficulties in analyzing financial statements
and operating indicators. It is essential to comprehend these elements to guarantee the
organization’s economic stability and strategy congruence with Saudi Vision 2030 (Biswas,
2020).
Assessing the Performance of the Debt-to-Equity Ratio
With a debt-to-equity ratio of 1.3, the company has 1.3 riyals of debt for every Saudi
riyal of equity. This score indicates substantial financial leverage, although it is not overly
extreme. This ratio indicates a sensible balance between using debt and equity to support
operations and investments in the healthcare industry, where stability and liquidity are crucial
(Festa et al., 2020). However, whether this is “good” depends on risk tolerance, industry
norms, and loan costs. For instance, a ratio below one is frequently chosen because healthcare
organizations must maintain operational resilience during economic volatility.
Methods for Raising the Debt-to-Equity Ratio
Madina National Hospital can lessen its debt dependency by raising this percentage.
This could entail refinancing high-interest debt to less expensive options or paying off current
loans. Raising equity through investor contributions, government grants, or retained earnings
might improve the equity base (Biswas, 2020). A better equity position can also result from
increased profitability through operational efficiency optimization and revenue stream
diversification. These tactics complement Saudi Vision 2030’s emphasis on prudent financial
management and sustainable growth.
3
Difficulties in Analyzing Financial Statements and Operating Indicators
In healthcare businesses, conducting financial assessments is a complex process. First,
the non-monetary contributions of governmental partnerships or subsidies—substantial in
Saudi Arabia—may not be included in financial accounts. Differences in accounting
procedures and legal constraints might also distort comparisons (Festa et al., 2020). External
factors like pandemics or demographic changes may also impact operating indicator
evaluations, such as revenue per bed or patient volume. Contextual awareness and careful
interpretation are required for these difficulties.
Conclusion
In conclusion, Madina National Hospital’s D/E ratio of 1.3 indicates moderate
leverage; nonetheless, it should be improved to increase financial resilience. The company
may better match its financial strategy with its mission and the objectives of Saudi Vision
2030 by lowering debt, raising equity, and resolving analytical issues.
4
References
Biswas, S. (2020). Measuring performance of healthcare supply chains in India: A
comparative analysis of multi-criteria decision making methods. Decision Making:
Applications in Management and Engineering, 3(2), 162-189.
Festa, G., Rossi, M., Kolte, A., & Marinelli, L. (2020). The contribution of intellectual capital
to financial stability in Indian pharmaceutical companies. Journal of Intellectual
Capital, 22(2), 337-359.
1
Debt to Equity Ratio
Name
Institutional Affiliation
Date
2
Debt to Equity Ratio
Introduction
This discussion uses an assumed debt-to-equity (D/E) ratio of 1.3 to assess Madina
National Hospital’s financial health. It looks at whether this is a good performance ratio,
looks at ways to improve it, and discusses the difficulties in analyzing financial statements
and operating indicators. It is essential to comprehend these elements to guarantee the
organization’s economic stability and strategy congruence with Saudi Vision 2030 (Biswas,
2020).
Assessing the Performance of the Debt-to-Equity Ratio
With a debt-to-equity ratio of 1.3, the company has 1.3 riyals of debt for every Saudi
riyal of equity. This score indicates substantial financial leverage, although it is not overly
extreme. This ratio indicates a sensible balance between using debt and equity to support
operations and investments in the healthcare industry, where stability and liquidity are crucial
(Festa et al., 2020). However, whether this is “good” depends on risk tolerance, industry
norms, and loan costs. For instance, a ratio below one is frequently chosen because healthcare
organizations must maintain operational resilience during economic volatility.
Methods for Raising the Debt-to-Equity Ratio
Madina National Hospital can lessen its debt dependency by raising this percentage.
This could entail refinancing high-interest debt to less expensive options or paying off current
loans. Raising equity through investor contributions, government grants, or retained earnings
might improve the equity base (Biswas, 2020). A better equity position can also result from
increased profitability through operational efficiency optimization and revenue stream
diversification. These tactics complement Saudi Vision 2030’s emphasis on prudent financial
management and sustainable growth.
3
Difficulties in Analyzing Financial Statements and Operating Indicators
In healthcare businesses, conducting financial assessments is a complex process. First,
the non-monetary contributions of governmental partnerships or subsidies—substantial in
Saudi Arabia—may not be included in financial accounts. Differences in accounting
procedures and legal constraints might also distort comparisons (Festa et al., 2020). External
factors like pandemics or demographic changes may also impact operating indicator
evaluations, such as revenue per bed or patient volume. Contextual awareness and careful
interpretation are required for these difficulties.
Conclusion
In conclusion, Madina National Hospital’s D/E ratio of 1.3 indicates moderate
leverage; nonetheless, it should be improved to increase financial resilience. The company
may better match its financial strategy with its mission and the objectives of Saudi Vision
2030 by lowering debt, raising equity, and resolving analytical issues.
4
References
Biswas, S. (2020). Measuring performance of healthcare supply chains in India: A
comparative analysis of multi-criteria decision making methods. Decision Making:
Applications in Management and Engineering, 3(2), 162-189.
Festa, G., Rossi, M., Kolte, A., & Marinelli, L. (2020). The contribution of intellectual capital
to financial stability in Indian pharmaceutical companies. Journal of Intellectual
Capital, 22(2), 337-359.
Purchase answer to see full
attachment