A Private Healthcare Practice

862 Words Feb 29th, 2016 4 Pages
The main goal of a private healthcare practice is to generate profits from services rendered. Private health care practice’s sole purpose just like a business is to generate revenue while maintaining financial viability. Financial viability is determined after reviewing all pertinent financial documents. Financial viability and status is determined by reviewing the organization’s Balance Sheets, Statements of Operations, Statement of Changes in Net Assets, and Statements of Cash Flows. A private healthcare practice financial balance sheet records the organization’s present assets, liabilities, and net assets at the time of review. Revenue statements or statements of operations give a snapshot of the healthcare’s revenue and expenses during the reviewed financial period. Once the revenue statement documents are reviewed, changes in asset and use of equity can be determined by reviewing statements of changes in assets documents. Statements of changes in net assets, list the change in equity during a specific operational time or period of the healthcare organization (“Statements of Change in Net Assets,” cassfraser.ca, gabs.org, May 2007). Fund generation and fund use are shown in the statements of the healthcare organization’s cash flow statements. Document review of an organization’s balance sheet, statements of operations, statement of changes in net assets, and statements of cash flows, will provide a view into a health care firm’s financial standing, financial…
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