Financial Statements And The Financial Statement

In healthcare organization’s the major challenge is to analyze a financial statement. These statements are meant too express and make the analyst core challenge that of the true financial figures. Also, changes in the information underlying ratios can hamper comparisons across time and inconsistencies within and across the industry can also complicate

Basic financial statements are valuable documents in the management of health care organizations. Financial statements are helpful in the management of health care organizations and determination of their credit worthiness. Investors and other stakeholders also find the statements highly beneficial in determining the appropriateness for investment in the health care organization. Accepted accounting principles are conventions set to regulate formalized systems of accounting; especially applied in America. Set by the financial accounting and standards board, accepted accounting principles guide the preparation of basic financial statements in all organizations (Riahi-Belkaoui, 2004). The basic financial statements include the balance sheet, cash flow statement, statement of changes in the organization's assets and statements of operations. Health care organizations must adhere to generally accepted accounting principles that are relevant to their operations. Different accepted accounting principles are applicable to the management of health care organizations and preparation of financial documents. Since most health care organizations must conform to the auditing standards by CPA, they must use the various accepted accounting principles.

The role of finance in Health Care Systems, Inc. as a regional not-for-profit hospital relates to both the accounting and financial management aspects of the business. Facets of both accounting and financial management are intertwined with maximizing productivity by way of managing and analyzing financial operations to ensure resources are being utilized properly (Gapensiki, 2013). The divulgence of financial reports to managers and investors will aid in the development of plans and budgets for future growth, assess acceptable levels of financial risk, manage contracts appropriately and make decisions related to capital investments allowing the organization to expand service offerings thereby demonstrating greater value in the community. Operating as a not-for-profit entity requires that the hospital operate exclusively in the interest of the public for a charitable purpose. Through understanding who the primary third party payers

This course is designed as an introduction to the terminology, processes, functions, and financial reports commonly encountered in health care operations. This course introduces the concepts of basic managerial financial functions, such as budgeting, reimbursement methods, and the responsibilities of health care financial

In the health care world finances play a significant role in the quality of care rendered to the consumer. There is no health care facility that is the same when it comes to their financial management because it is needed both internally and externally to ensure that it runs properly. Today’s health care field consist of either not-for-profit organizations, for-profit organizations and governmental, (Gapenski, 2008).

In addition to delivering health care of the highest quality, another main goal of a health care organization is to remain profitable and viable through effective financial management. In an effort to do so, members of administration along with the Chief Financial Officer (CFO) work diligently in attempting to maintain and sustain a successful health care organization by monitoring the flow of cash (in and out) in accordance to GAAP (Generally Accepted Accounting Principles), while ensuring the needs and wants of the consumers are met. With this being the case, health care accounting skills are equally important in

In conclusion, a health care organization’s primary focus may be to provide quality care services; however the financial wellbeing and viability is critical to meet that focus. “A substantial portion of U.S. Generally Accepted Accounting Principles (U.S. GAAP) applies specifically to reporting entities that are involved in the business of healthcare. Therefore, the generally accepted accounting principles were developed as a set of

The income statement monitors a company's progress or position and looks at the profits or losses over a period of time (Shahwan, 2008). The balance sheet monitors the pharmacies financial situation in a snapshot of time. It compiles a pharmacy 's liabilities, assets, and owners' equity (Shahwan, 2008). Although these documents are important for accounting they do not give a good snapshot of the cash flow of the pharmacy, which may potentially indicate the success of the

In order to understand financial statements better, two healthcare organizations, one for-profit and the other non-profit, will be selected and their financial statement will be reviewed. The first healthcare organization that was selected was Adeptus Health, Inc. (Adeptus), a for-profit entity. Adeptus was founded in 2002, and currently serves communities in Colorado, Texas, and Arizona, with partnerships within Ohio and Louisiana (Adeptus, 2016). The company was founded to improve services within the emergency room (ER) setting by offering the community eighty-one free standing ERs and two ER facilities within a fully licensed hospital, as of the end of 2015 (Adeptus, 2016). Adeptus boasts being one of the best companies to work for in Texas in 2016, and has won the Press Ganey Guardian of Excellence Award for three consecutive years, since 2013, which is awarded to ERs that exceed patient satisfaction over the ninety-five percentile across the country (Adeptus, 2016). The company aspires to provide high-quality care that is patient-centered while being cost effective and supportive to their staff.

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

Understanding the financial analysis of healthcare organizations is strategic to the organization by understanding their stand on the amount of revenue they gain, healthcare assets, and their financial goals. This paper will provide a comparison on the performance of financial analysis of several California Healthcare Organizations such as; Scripps Health, Palomar Health, Sharp Healthcare, and Tri-City Healthcare. The four healthcare organizations will be illustrated with an overview about what the organizations have been doing financially , where they have been growing financially, and what have they accomplished over the past year from examining their financial statement. As the nation’s healthcare model continues to evolve,

The following pages present a brief analysis of sample data from one healthcare organization. Accompanying this written report are spreadsheets of the company's financial data its balance sheet and its statement of revenue and expenses that provide not only the figures from the audited reports of the hospital examined, but also show the change from year to year on each item as both a dollar amount and a percentage. Changes of more than five percent are considered worthy of discussion, and as these documents show much

The main goal of a privately 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 record 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 is shown in the statements of the healthcare organizations cash flow statements. Document review of an organization’s balance sheets, statements of operations, statement of changes in net assets, and statements of cash flows, will provide a view into a healthcare’s financial standing, financial organization, and

The comparative income statement gives an idea of the progress of a business over a period of time. The changes in absolute data in money values and percentages can be determined to analyses the profitability of the business.

Assets in the financial statement are always required and show useful information to investors and understand where the information comes from. For instance, accounts receivable net which the organization does not expect to collect all of the money it is due from all patients and insurers, (Finkler, S.A., Ward, D.M. & Calabrese, I.D., 2013). The bad debts become about of the money due. Furthermore, accounts receivables, net represents gross charges less an allowance for poor debts, and many contractual allowances established with those third party payers. Typically, an example of a bad debt would show charges of a large sum of money delivered from a hospital. Then, the contractual allowances from