Health Care Cost Study: Financial Statements
The Patton-Fuller Community Hospital has been serving the community since 1975; so handling financial statements are familiar with them. The discussion in this paper will enlighten what is the difference of audited and unaudited statements, the relationship between revenue sources and expenses on performance, and the effect of revenue sources on financial reporting. It will also discuss is the hospital’s revenues and expenses grouped for planning and control.
The audited and unaudited balance sheets from the Patton-Fuller statements differ by the net allowance of bad debts and retained earnings, or unrestricted fund balance. The ...view middle of the document...
The difference between audited and unaudited statements illustrates the importance of auditing and certifying financial information for accuracy.
At Patton-Fuller Community Hospital the company’s financial ratios are improving.” An analysis of the unaudited financial statements shows that all financial ratios have improved, and the hospital is poised to continue its profitable trend.”(Davis Geach, Chief Executive Officer, 2009)
The main way to tell that the company’s financial ratio is improving, is by looking at the total operating revenue and then subtract the total operating expenses. Once you have done that and the revenue is more than the expense the hospital is making a profit.
In order to determine this for Patton-Fuller Community Hospital, you would go to the Statement of Revenue and Expenses. Find the total amounts for revenue and amounts for expenses and then subtract them. So this hospital is making a profit of $689. At Patton-Fuller Community Hospitals financial ration is improving for the year 2009. In 2008 the financial ratio was not good. They lost $16,110 at that time.
The relationship between revenue and expenses are:
Revenue is the income that a company receives from its services it provides to its customers. Expenses are an outflow of money to another person or group for an item or services.
-Salaries and benefits $220,752
-Physician and professional fees 110,376
-Depreciation and Amortization 36,036
-Provision for doubtful accounts 13,797
-Net patient revenue $459,900
-Other revenue $3,082
It turns out that in 2009 Patton-Fuller’s financial performance showed that both expenses and revenue are almost the same amount. The expenses for 2009 are $462,293. The revenue for 2009 is $462,982.
Company’s use revenue sources at the hospital as a financial record to track performance of the source providers. The financial reports give an...