Financial Statements Review
November 14, 2013
Financial Statements Review
The Patton-Fuller Community Hospital is a full-service, for-profit hospital with 600-beds. Since 1975, the hospital has made every effort to provide advanced patient care for both inpatient and outpatient treatment in Northwest valley. The Patton-Fuller Community Hospital is owned by a 14 person board, in which 12 are active physicians. Collectively, the board works on a budget that best aids the board and the hospital. The goal is to make a profit while providing patients with the best care around. This paper will discuss the summary of the financial statements issued for the Patton-Fuller Community Hospital in the years 2008-2009 (Patton-Fuller Community Hospital, 2009).
The effect of revenue sources on financial reporting at the hospital will vary depending on the amount of revenue being generated and the specific source of the revenue. Revenue ...view middle of the document...
In addition, the net allowance for bad debt is shown at, $11,757, a one million dollar increase. The differences showing the audited amounts appear to show a vast difference. In addition, reveal a two million dollar deficit, from the unaudited version. in time This difference could cause the organization to falter . (“News Medical”, 2013.)
The hospital’s revenue it divided into two groups, the net patient revenue and the other revenue. The net patient revenue is the hospitals gross income acquainted by pledged agreements with a number of insurance groups and manages care. The other revenue is made up of contributions expected from outside subscribers. The other revenue flow is from the promoting department siltation of subscribers which makes the other revenue class easy to plan and control. There should be collaboration with the marketing departments increased efforts with an increase in donation revenue. If a direct collaboration does not exist then it would appear that the marketing department’s campaign was not effective and thus the hospital’s directors should consider having the marketing department change its methods or consider reducing or cutting the marketing department.
The net patient revenue and associated expenses such as physician and other professional cost should show a similar collaboration, because an increase in net patient revenue can only occur by an increase in the number of patients seen or by renegotiating the hospitals countless contracts. With an increase in patients you would expect physician and other professional cost to increase as well. The supplies expense would be an expense category that you would be expected to increase and decrease based on the number of patients that has been seen. However, with Patton-Fuller this may not be true. The notes from their budget in 2010 indicated that the hospital over purchased supplies in the year 2009.
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