For the month of October 2015, The New London Hospital Association, Inc. generated a consolidated gain from operations of $71k compared to a budgeted gain of $373k. That brought the YTD operating gain to $368k versus a budgeted YTD gain of $250k. Monthly Non-Operating Revenue was $44k compared to a budget of $83k. YTD Non-Operating Revenue was $229k compared to a budget of $334k. Gross Revenue – October’s consolidated gross revenue was $169k lower than budget, but still $724k over budget YTD. Within the Hospital, the largest over budget variances occurred in the Lab ($106k over budget in Oct., $453k YTD) and Radiology ($102k over, $554k YTD). The NLH Medical Group’s October gross revenue was essentially on budget, with positive variances in NLH and DHMC Orthopedics for a combined $107k over budget and General Surgery at $27k over budget. The Clough Center’s October gross revenue was $18k over budget. Deductions from Revenue and Other Income – Deductions from Revenue were set at budget for October in anticipation of the results of the Medicare Cost Report. Patient Free Care was $74k below budget in October and $269k below budget YTD. Bad Debt was $23k under …show more content…
a budgeted gain of $25k.
• Hospital – YTD operating gain of $2.007 million vs. a budgeted gain of $2.115 million.
• Medical Group – YTD operating loss of $1.56 million vs. a budgeted loss of $1.83 million. Remember that much of the Hospital’s business is due to referrals from the Medical Group.
• Clough Center – YTD operating loss of $96k vs. a budgeted loss of $27k. Balance Sheet and Covenants – Our cash position was at 115.1 Days of Cash on Hand at October 31th, although there were 46 offsetting days in third party reserves. Days in Accounts Receivable were at 51.3 days. The Debt Service Coverage Ratio at the end of October was 4.69-to-1 versus the minimum covenant requirement of
I attended the Saturday Lab 1 session discussing the Denison Specialty Hospital case study. In our session, we had a through discussion into the different budget terminology. I learned about the difference between accrual and cash accounting methods, which is based on the timing of when the revenue and expenses are recognized. I also learned about responsibility centers as an organizational unit under the supervision of a manager, who is responsible for its activities and results. In addition, the manager is accountable for the budget of the department that they head. Therefore, a centralized form of management in developing the budget because it makes easier to because the information for the department budget is located
As of December 26, 2004, our liquid assets totaled $10,924,000. These assets consisted of cash and cash equivalents in the amount of $10,642,000 and short-term investments in the amount of $282,000. The working capital deficit increased slightly from $50,359,000 as of December 28, 2003 to $51,041,000 as of December 26, 2004. This increase was due primarily to increases in the loss reserve and unearned premiums related to the captive insurance subsidiary and accounts payable and was partially offset by increases in inventories and receivables.
Emanuel Medical Center (EMC) is having an enormous amount of issues, financially. Even the CEO, Robert Moen, knows they are experiencing a number of challenges and it cannot be fixed overnight. One of the main challenges EMC are facing is the federal regulation change(s). They are playing a big role in the financial struggle with lower reimbursement rates for federal insurance programs, implementation of EMTALA laws, development of services offered by other local competing hospitals, changes in service area demographics, which have all contributed to five sequential negative operating margins for EMC.
During the 1960’s, America’s solution to the growing population of mentally ill citizens was to relocate these individuals into mental state institutions. While the thought of isolating mentally ill patients from the rest of society in order to focus on their treatment and rehabilitation sounded like a smart idea, the outcome only left patients more traumatized. These mental hospitals and state institutions were largely filled with corrupt, unknowledgeable, and abusive staff members in an unregulated environment. The story of Lucy Winer, a woman who personally endured these horrors during her time at Long Island’s Kings Park State Hospital, explores the terrific legacy of the mental state hospital system. Ultimately, Lucy’s documentary, Kings
...and his vision in successfully transforming the medical center to a tertiary care facility. However, in 2008 under Ron Henderson, the medical center expenses began to skyrocket and revenues failed to keep up. Also, a hospital census indicated that, on average, Medicare patients consisted of 58% and Medicaid patients consisted of 18% which caused the medical center to suffer from reductions in reimbursements. Although noted by solid evidence that utilization was experiencing a steep decline, Mr. Henderson added 127 new positions to the medical center. In 2009, Mr. Henderson was fired after the board of trustees realized that this financial bind of an $8.6 million deficit was caused by Mr. Henderson. In order for the new CEO, Richard Reynolds, to succeed at his new job title, he must create a benchmarking process adopting certain goals to remain a worthy competitor.
Revenues of $10,161 million in the fiscal year ended December 2014 was seen by the organization, an increase of 5.3% over 2013.The company 's operating profit was $419 million in fiscal 2014, as compared to an operating loss of $22 million in 2013. Its net profit was $402 million in fiscal 2014, an increase of 34% over 2013 (Sutter Health, 2016).
The purpose of financial measurement in healthcare is to provide the community with the services it needs, at a clinically acceptable level of quality, at a publicly responsive level of amenity, at the least possible cost. This is done by providing healthcare finance managers with accounting and finance information to help accomplish the purpose of the organization (Nowicki, 2015). When making accounting decisions about budgeting and inventory control, an understanding of economics, statistics, and operations research is needed. Major Financial Measures
First, let us analyze General Practice Affiliates’ current financial position. The income and expenses report shows a net revenue of $230,250. The net revenue is obtained after expenses, including taxes, of the company have been subtracted from revenue (Paterson, 2014, p. 124). The balance sheet shows a $306,180 in retained earnings. Retained earnings represent stakeholders’ equity (Paterson, 2014, p. 128). Retained earnings are usually invested back in the form of inventory or debt payments (Albrecht, Stice, Stice , & Swain, 2008). General Practice Affiliates’ cash flow analysis shows that the practice invests in new equipment. However, General Practice Affiliates mainly used cash during 2012. The main source of cash from operations came from depreciation expense, which is not a reliable source of funding (Paterson, 2014, p. 130). Accounts receivable increased by $50,000, while accounts payable only increased by $10,000. In addition, cash flow analysis shows a balance sheet data that is affected by future transactions (Paterson, 2014, p. 128). General Practice Affiliates choose to stretch the time to pay suppliers instead of paying its bills. ...
Dr. Molloy, owner of Medi-Exam Health Services (MEHS), has a seemingly “good problem” within his medical practice. Based on an income statement for the month of August, MEHS had profited $4,000 more than estimated by the profitgraph put together by his accountant. Although this may seem okay due the nature of estimation that comes with profitgraph analysis, Dr. Molloy needs to investigate and understand the root of the discrepancy between the outputs.
Looking at the individual ratios seen in exhibit 1 and comparing it to the industry average shown in exhibit 2 gives a sense of where this company stands. Current ratio and quick ratio are really low and have been decreasing. For 1995, the current ratio is 1.15:1, which is less than the industry average of 1.60:1, however to give a better sense of where this stands in the industry, as seen in exhibit 3, it is actually less than the average of the bottom 25% of the industry. The quick ratio is 0.61 is less than the industry is 0.90. Both these ratios serve to point out the lack of cash in this company. The cash flow has been decreasing because, it takes longer to get the money from customers, but the company still needs to pay for its purchases. Also, the company couldn’t go over the $400,000 loan limit, so they were forced to stretch their cash.
During the year, budget performance was monitored closely. Each week’s and monthly, sales revenue performance figures were sent to Herb Stolzer by Roy Black. Roy Black also sent a monthly management report to Stolzer that included income statement highlights and a summary of key balance sheet figures and ratios. All information was provided with reference to (1) position last month (2) position this month (3) budgeted position.
Organizations use financial statements and ratio analysis assess financial performance viability. The ratio analysis are used to identify trends and to perform organizational comparison (financial) with other companies within same industry. Ratio analysis, using data reported on the financial statements, are divided into five major categories: common size, liquidity, solvency, efficiency, and profitability. This paper will assess the financial stability of John Hopkins Hospital (JHH) using the five ratio analysis.
Hospital Corporation of America (HCA). Staff Analysis Statement of Problem HCA, after following a conservative financial policy since its establishment, has entered the new decade preparing to make some changes in order to realign their financial strategy and capital structure. Since its establishment, HCA has often been used as a measure for the entire proprietary hospital industry. Is it now time for the market to realign their expectations for the industry as a whole? HCA has target goals that need to be met in order to accomplish milestones in the future.
Total revenue change from budget for rooms is 473, 979 – 541, 800 = -$67, 821
For the most recent year-end, the Company incurred a net loss before taxes of almost $550 million. This loss is non consistent with historical amounts reported by the Company. Two significant factors contribute to the loss.