By: Crissel Anne Cailin

LHIN 2: FINANCIAL INDICATORS

1
Budget
2010/11= $2.04 billion 2011/12 = $2.128 billion (4% increase)






2
1,528
0
176
46.4
30.7 4.3 17.1 16.5 8 4.5 5.2 0.3
2011/12 Budget Allocation (million)
Hospitals
Long-Term Care Homes
Commuity Care Access Centre
Community Mental Health
Community Support Services
Acquired Brain Injury
Supportive Housing
Community Health Centres
Addictions Programs
Initiatives (Priorities Fund)
Opertation of LHIN
Initiatives (LHIN Operations)
Total Margin
Total margin is an indicator measuring financial viability.
It is strongly influenced by positive financial outcomes on
a yearly basis.
A positive value indicates that the legal entity had
revenues in excess of expenses (a surplus), while a
negative value indicates that the legal entity had expenses
in excess of revenues (a deficit).
Formula:
Total Revenue Total Expenses
Revenue, Excluding Internal Recoveries





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Total Margin
Trend:
increasing
over time
+ (surplus)

-0.1
0
1.6
0.6
1.7
-0.2
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2005-2006YE 2006-2007YE 2007-2008YE 2008-2009YE 2009-2010YE
TOTAL MARGIN Linear (TOTAL MARGIN)
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Current Ratio
Current ratio is an indicator of a hospitals liquidity that
measures how current assets and liabilities are managed.
The inability to meet short-term obligations can hinder
the delivery of quality patient care services.
A current ratio value <1 indicates that the legal entity did
not have sufficient short-term assets to meet its short-
term debts.
Formula:
Current Assets + Debit Current Liability Balances, Excluding Current Portion of Deferred Contributions
Current Liabilities, Excluding Current Portion of Deferred Contributions + Credit Current Assets, Except Current Asset
Contra Accounts






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Current Ratio
Trend:
increasing
1.0 1.0
0.9
1.5
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2007-2008YE 2008-2009YE 2009-2010YE 2010-2011YE
CURRENT RATIO Linear (CURRENT RATIO)
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ALOS
The average stay counted
by days of all or a class of
inpatients discharged over
a given period. Used as an
indicator of efficiency in
containing inpatient service
costs.
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ALOS: IP Combined Medical/Surgical
Trend:
decreasing
(interim
though)
7.5
7.6
7.7 7.7
7.3
7.1
7.2
7.3
7.4
7.5
7.6
7.7
7.8
2007-2008YE 2008-2009YE 2009-2010YE 2010-2011YE 2011-2012Q2
ALOS Linear (ALOS)
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CPWC
Cost per weighted case (CPWC) is an indicator that
measures the relative cost-efficiency of a hospitals
ability to provide acute inpatient care. This indicator
compares a hospitals total acute inpatient care
expenses to the number of acute inpatient weighted
cases related to the inpatients that it provided care
for. The result is the organizations full cost of treating
the average acute inpatient.






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CPWC
Trend:
increasing
$5,050
$5,100
$5,150
$5,200
$5,250
$5,300
$5,350
$5,400
$5,450
$5,500
$5,550
$5,600
2006-2007YE
2007-2008YE
2008-2009YE
2009-2010YE
$5,260
$5,437
$5,499
$5,589
Series1
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Performance Summary
LHIN 2 is doing good
because:
Positive total margin
(surplus)
Current ratio is within the
ministry standard of 0.8
and 2.0 (liquidity)


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LHIN 2: FINANCIAL
INDICATORS
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