Question Description
Mechanisms for Evaluating Financial Health of Health Care Organizations
Case Assignment
Pearland Medical Center reported revenues of $1,500,000,000 in 2012and $1,250,000,000 in 2013. The revenue streams comprised 25% patientself-pay revenue, 50% third-party payors revenue, and the remaining 25%was a combination of grants from the Grant Foundation and investments.The medical center spent $15,000,000 in marketing for each of the pasttwo years. The average hospital daily patient census was 570 in 2012 and470 patients in 2013; patient hospital days were 202,920 in 2012 and171,500 in 2013.
Pearland Medical Center reported operating expenses of $500,000,000in 2012; but due to layoffs and reorganization, operating expensesdecreased by $200,000,000 in 2013. Depreciation expense was $50,000,000in both years. The medical center spent $20,000,000 on research andeducation each year. Executive administration anticipates little growthin patient population in the coming year and will likely need to investin new equipment. The nonprofit facility pays no shareholder dividendsor taxes.
- Create an income statement based on the scenario. Determine thefinancial health of Pearland Medical Center. What were Pearland MedicalCenter’s net income, cash flow, total profit margin, and total profitmargin excluding grants and investments for each year?
- Discuss your suggestions for Pearland Medical Center based on yourinterpretation of the income statement. Is the facility financiallyhealthy? Should the Grant Foundation reconsider their grant?
Assignment Expectations Length: 3 pages, 3 Cited sources from required reading.
Required Reading
Accounting For Management. (2013). Vertical analysis (common-size analysis) of financial statements. Retrieved from http://www.accountingformanagement.org/vertical-an…
Albrecht, C. & Albrecht, C. (2008). The nature of financial statement fraud. Internal Auditing, 23(4), 22-27.
National Health Care Anti-Fraud Association. (2016). The challenge ofhealth care fraud. Retrieved fromhttps://www.nhcaa.org/resources/health-care-anti-f…
U.S. Securities and Exchange Commission. (n.d.) Beginners’ guide to financial statements. Retrieved from http://www.sec.gov/investor/pubs/begfinstmtguide.h…
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Place Order” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.