Organizational profile

Laurel Ridge Health is a regional, community‑anchored health system headquartered near the Appalachian foothills. Our mission of “improving community wellness through equitable access” guides every decision. While the organization is fictional, its structure and financial statements mirror those of real nonprofit health systems so that learners can engage with authentic scenarios without risking patient confidentiality or institutional reputation.

Structure and facilities

The system consists of a full‑service acute care hospital and a network of outpatient facilities that extend our reach into the community. All core facilities are owned and operated as nonprofit entities, ensuring that patient care remains at the heart of our mission.

• Flagship hospital

  Our 250‑bed flagship campus provides inpatient services, surgery, emergency care and specialty programs to serve a growing population. It anchors the system’s clinical expertise and offers training opportunities for learners.

• Outpatient network

  Two primary care clinics, one urgent care center, a specialty clinic and a rural outpatient center offer convenient access to routine and specialty services. These sites reduce geographic barriers and reflect the shift toward ambulatory care.

• Joint venture & ancillaries

  Laurel Ridge holds a 30% stake in a for‑profit joint venture aligned with our mission. We also manage modest yet profitable ventures—including a community coffee shop, a specialty pharmacy and a small real estate portfolio—that generate non‑operating income to support our nonprofit services.

Strategic position & payer mix

Laurel Ridge is in a mid‑expansion phase. We are investing in new clinic development and acquiring independent practices to better serve our community. These projects are partially funded through additional long‑term debt, which increases leverage and heightens our focus on liquidity and debt service. Despite margin pressure from labor costs and reimbursement, our core operations remain sound.

Our payer mix underscores our commitment to access:

Payer	Share of revenue
Medicare	35%
Medicaid	15%
Commercial	40%
Self‑Pay / Other	10%

With more than half of our revenue derived from government payers, Laurel Ridge navigates tight margins and emphasizes efficiency and stewardship. These constraints create rich opportunities for learners to explore pricing, cost containment and reimbursement strategies.

Instructional design

Laurel Ridge Health was designed as a teaching case in healthcare finance and governance. Students, clinicians and board members can dive into realistic strengths and weaknesses, explore internal tensions and follow a clear financial storyline across multiple years. The system includes income statements, balance sheets and cash flow statements for FY 2023 and FY 2024, along with ratio tables and narrative discussions.

• Trend analysis

  Compare two years of audited financial statements to see how operations, investment income and leverage shape performance.

• Board simulation

  Use leadership letters, board packets and dashboards to role‑play a governance meeting. Evaluate expansion projects, debt capacity and mission impact from multiple perspectives.

• Scenario building

  Create your own pro forma statements and capital project proposals. Explore the effects of changes in volumes, payer mix and capital spending on margins, liquidity and debt covenants.