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  • Title: Strategic operating indicators point to equity growth.
    Author: Cleverley WO.
    Journal: Healthc Financ Manage; 1988 Jul; 42(7):54-6, 58, 60-4. PubMed ID: 10302514.
    Abstract:
    As healthcare managers become more business-like in their behavior, they are becoming increasingly concerned with the equity growth rate of their organizations. Strong equity growth means a financially healthy organization. Equity growth can be expressed as a product of five financial ratios--the most important ratio being the operating margin. Improvements in operating margins will lead to improvements in equity growth. Thirty indicators, called strategic operating indicators, have been developed to monitor operating margins. These indicators, when compared with values from other peer groups, can help point to strategies for improvement of operating margins, and hence equity growth.
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