Interpreting Hospital Financial Statements: The Implications of Change

In 1997 University of California, San Francisco (UCSF) merged its two public hospitals with Stanford’s two private hospitals. The two separate entities merged together to create a not-for-profit organization titled UCSF Stanford Health Care. The merger between the health systems at UCSF and Stanford seemed like a good idea due to the similar missions, proximity of institutions, increased financial pressure with cutbacks in Medicare reimbursements followed by a dramatic increase in managed care organizations. The first year UCSF Stanford Health Care produced a profit of $22 million, however three years later the health system had lost a total of $176 million (“UCSF-Stanford Merger,” n.d.). The first part of this paper will address reasons

In week 2, I will be answering some questions that are relevant to the company “Central Health Services” selling service contracts for healthcare applicants and equipment. I will be discussing adjusting the accounts, adjustments and ethics also located in our textbook. In conclusion, I will be discussing my overall review of my findings and the difficulty in accrual accounting.

While there is still much to learn about financial operation of a health organization, I feel that I have better understand of most of the fundamental principles that apply to a broad spectrum of businesses. Upon reflection this understanding of financial principles also reinforces the need to have a fundamental base of knowledge, but simultaneously services to illustrate the vast body of information that there still is to learn. The allied health community assignments were useful in a general sense, in that they allowed a student to apply some of the concepts that they have learned. This “hands on” approach was helpful because it added context to the lectures and readings. As an exercising in doing the work of an administrator, the allied health community exercises required the student to research additional information about the topics assigned and this allowed me to further mentally cement the concepts.

Palomar Health is one of the largest health care districts located in California around San Diego Counties. Palomar Health operates three hospitals, in addition to home health care, surgery, skilled nursing, ambulatory care, behavioral health services, wound care, and community health education programs. This paper will analyze Palomar Health’s financial statement from fiscal years following 2012 to 2015. An in dept analysis of the Consolidated Statement of revenue, expenses, and changes in net position will be examined to better understand the organizations standings of their financial outcomes for those following years (McIntosh L. 2015).

This research paper provides an in-depth look into Jackson Memorial Hospital’s financial trouble. The paper is broken down into several chapters to better analyze the issues that have led to Jackson’s financial crisis. The first chapter focuses on the research proposal and introduction. It provides a brief history, outlined a list of essential as well as issues over the years. A research question and hypothesis are also formed to further explain the issues. In addition, a detail of the research significance and purpose is discussed, as well as an insight into the research method. In the second chapter, a literature review discussed the two theoretical concepts of lack of internal control and poor strategic planning and two other organizations

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 debate over non-profit versus for-profit healthcare organization has been ongoing, does one provide better care than the other? Do the operations of for profit perform better than the non-profit organizations? Are the criticisms about for-profit organization validated and is there proof? The goal is to examine those questions as well as offer options to improve the financial and operational performance of non-profit and for-profit organizations criticisms.

Nonprofit hospitals have become a common characteristic of the hospital sector because they can be found across the country because of their presence in almost every corner, they never decline to provide treatment, and offer several community-based health programs. On the contrary, the for-profit health facilities are regarded as the corporate model of health care services as they seek to make profit first. They enjoy huge capital that enables them to develop state-of-the-art facilities and purchase the latest clinical technologies.

I chose to report in the area of general medical and surgical hospital, although it provides explanation on cost and revenue it fails to mention them in detail. The article stated that for the past decade hospitals have decreased in numbers, as well as in patient hospital beds. However, reading the article under organization and structure it reveals cost and revenue. For instances in the late 2000’s, the largest source of income for hospitals came from Medicare and Medicaid services, of 2.24 trillion, in governmental funds they provided 1.04 million or 46.2 percent. Medicaid accounted for 19.2 percent and Medicare, 14.7 percent. Private insurances paid 34.6 percent which would be over 775 billion, finally out-of-pocket expenses accounted for 12 percent, which was equivalent to 268.9 billion. The remaining 7.2 percent came from other sources of revenue.

The financial statement analysis of Doctors Hospital raises hopes and concerns regarding the financial performance and financial situation of the hospital. A rise in net assets and drop in liabilities will support the financial base of the hospital. Profits from short-term I nvestments should maintain this base, and improve the total assets. There is a concern in regards to cash flow and net income. There is a large reduction in cash flow of $2,222,000, which means there might be a shortage in cash flow to continue the project or purchase capital equipment. The organization should have to find solutions like to borrow from banks, spreading payments in future, etc. to manage the shortage of cash flow (Finkler et al., 2013). Another area

Paradise Hospital, Inc. is a for-profit hospital. As the facility’s new hospital administrator, you have been tasked with improving the service value of the hospital. The administration has not done this process since the hospital began operating in the year 1995. The investors are not familiar with the value proposition strategies of hospitals in the current day America.

For several decades health care has been tied to the economy and with the current downturn we see continued efforts to control and reduce over-head costs. Health care organizations in their effort to become more efficient and address changes in the industry have altered their strategic business plans. Lee & Alexander (1999) researched organizational change in hospitals and their survival, in this paper I hope to discuss their findings and add other examples to validate their conclusions.

Healthcare managers participate in various important roles that allow them to form and maintain flourishing organizations. Managers ought to be aware of the decisive elements of management and the generally accepted accounting principles. At the same time, they must realize, stick to, and put into effect the general financial ethical standards. Successful management of finances of healthcare is one of countless tests that mug the organization. Revenues and expenses of the organization are essential because they establish the external and internal finances of the company. The

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 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 which need to be met in order to accomplish milestones in the future. The problem arises as to which area holds priority to the company. HCA must decide how the key components of their financial strategy and policy should my approached in order

Financial statements have several key components and specific criteria into them to relay the detailed information for auditors and management. A deeper look into financial statements and the many concepts surrounding them are needed to explain in more detail. It’s also important to recognize the Auditor’s opinion letter, balance sheet, operating statement, statement of changes in net assets, and statement of cash flows and footnotes of their involvement in the process. Relevant accounting articles are a useful supplement to financial statements and how they enhance concepts in the financial statement. The meaningful uses of financial statements for health care organizations are the epitome of current and future success of financial health.