patton fuller

Within the first three months of the project, the company reduced the number of accounts receivable days for the nine hospitals in the region from 65 to 59. Each one of the A/R days equals $13 million, which in turn means that Sutter Health collected an additional $78 million (Souza& McCarty, 2007).

Answer: Aging schedules definitely help a company keep track of which of its customers are paying on time, and are useful in figuring cash flow. In this case, it is apparent that the majority of accounts receivable by the end of March are less than 30 days old (80.8%). By the end of June, that percentage goes down to 63.7%. By the end of March, 19.2% of accounts receivable are between 30-60 days old, and by the end of June, there is 36.3%. 0% of accounts receivable get to be over 60 days old, which indicates payment.

4) Average Collection Period is “the average amount of time that a receivable is outstanding, calculated by dividing 365 days by the receivables turnover ratio” (Kimmel Weygandt, & Kieso, 2007, p. 396). It is used to assess the effectiveness of a company’s credit and collection policies. An increase in collection period may be an indication of a decline in financial health of customers. Hershey’s collection period increased 32.45 in 2002 to 34.05 in 2003 and then decreased to 33.64 days in 2004. Tootsie Roll increased from 23.44 in 2002 and 22.29 in 2003 to 25.48 days in 2004. I could not locate an industry average against which to compare both companies.

The greatest financial challenges to a health care provider are its revenue cycle and receivable management. The revenue cycle is the process that includes all the administrative as well as the clinical functions that are essential and important for capturing, managing, and collecting the patient service revenue whereas the receivable management deals with the planning, organizing, directing, and controlling the receivables. Therefore when all these are taken into account with proper measures they can serve well in making the health care provider sustainable in financial decision. Well if we look at the health care organization we can concatenate many of these who are actually available for the discussion of their alternative to the

In 2015, Jackson Memorial Hospital had $ 1,252,551,454 in total operating revenues with total operating expenses of $1,588,328,771 generating a total operating loss of 335,773,317 ( p. 18). Jackson Memorial however, ended the 2015 fiscal year with positive numbers due to its non-operating revenue. Due to Jackson’s total non-operating revenue of $467,855,586, net income ended at $209,430,749 (Public Health Thrust of Miami-Dade, 2015, p. 18). Compared to 2015, Jackson Memorial’s operating numbers were slightly low in 2014. Jackson Memorial had $1,173,157,623 in total operating revenues with total operating expenses of $1,506,814,082 generating a total operating loss of $333,565,459 in 2014 (Public Health Thrust of Miami-Dade, 2015, p. 17).

Accounts receivable, or A/R, represent the cash due to a provider, or physician in this case, by insurance carriers or the insured patient. To reduce, or decrease, the total balance due, the payments are applied, or added, to the patients account. In other words, accounts receivable is cash that is owed to a company or practice by its debtors. Payments due from guarantors, patients, or payers is known to be accounts receivable. Getting paid in a manner that is timely and correct is something every practice wishes to achieve. They must do that by managing their accounts receivable. They also measure accounts receivable, or A/R, in days. To do this, you must calculate by dividing the total accounts receivable by the average charges daily for the practice. For example, "60 days in A/R" means that the practice is due payment for the equivalent of 60 days of work. Some practices handle these accounts receivable by:

Deductions from revenue for June increased by 5% due to unsuccessful attempts to decrease accounts receivable by year-end, which was approximately $1.5 million higher than year-end FY16. A consultant has been engaged to review efficiencies and recommend improvements. Contractual allowances ended FY17 on budget, while patient free care was $352k under budget and bad debt was $49k under budget for FY17. The combined YTD results of the 340(b) Revenue, Ambulance Support, and Other Income were $630k above budget.

Moreover, from the analyse tab and the function “Age”, an aging of the Accounts Receivable was performed.

Based on a request from our Chief Executive Office I had the opportunity of analyzing the current financial standing of Virginia Hospital Center. Overall the hospital appears to be in a strong position financially. I will be presenting a brief overview of aspects of our financial statements which I feel are relevant and will set you at ease based on our financial strength. I focused this presentation on four important aspects, they are VHC’s Operating Margin, Current Ratio, Excess Margin and finally VHC’s Average payment period. I will go into more details about what these benchmarks represent and our current performance on them.

The intention of this research paper is to further understand the financial statement of four distinct hospitals located in the San Diego, California County. An analysis of the financial report for Sharp HealthCare, Scripps Health, Tri-City HealthCare, and Palomar Health will be briefly discussed individually on each important financial outcome’s Such as: assets, liabilities, revenue, expenses, hospital debt, and investments. To analyze further, a break down between the hospitals assets, liabilities, and revenue will be compared in the paper.

The first computation that is needed is the Average collection period (ACP) see figure 1. Which is interred related to average accounts payable period (APP) see figure 2. the ACP is a simple equation that allows the firm to have a good idea about how long on average there accounts receivables takes to get collected. In order to solve for this equation we must know that the denominator is simply sales divided by accounts receivables then we divided the days in sales over our first computation and get the ACP. The APP was given in the case but it is a good idea to understand what this formula is doing and why the number is important to us as you see In figure 2 it is a pretty straight forward formula where we take inventory period and add average collection period the formula computed above a subtract our cash cycle form that. The APP is important because it allows the firm to know the average time it takes them to pay

One of the largest U.S. hospital management companies is Hospital Corporation of America (HCA). The Hospital Corporation of America was founded in 1968. It’s the nation’s first hospital companies and now the nation 's leading provider of healthcare services with about 165 hospitals, 115 freestanding surgery centers, and employs around 204,000 people (“Hospital”, n.d). Besides offering traditional services, HCA has been a leader in the ever growing for-profit medical-services and hospital-management industry which cause them to achieve a strong international presence. HCA is ahead on its considerable debt payments, incurred when the company went private, but still faces challenges. It is difficult for non-HCA physicians and physician office staff using non-HCA devices (e.g. personal computers, etc.) to remotely access their patients’ data on the existing HCA clinical applications. Because of this difficulty users (non-HCA physicians) are likely to send their business to an HCA competitor if that competitor provides easier access to patient information than HCA (Encyclopedia, 1982). HCA mission is to puts patients first and find ways to constantly improve the care we provide. By introducing a virtual desktop infrastructure (VDI), HCA will be able to meet their mission of constantly improving care we give to our patients and empower our employees (by centralizing user access) (“Hospital”, n.d). Most importantly HCA will be able to stand above our competitors

The facility has a potential growth by acquiring IT systems. As mentioned, the major challenges are staffing, technology, and limited financial resources which is expected since the merger Suburban’s administration never performed any improvements or major capital investment. In my opinion, the selling of the facility demonstrate failure but also without the acquisition of technology the hospital could not expand their capabilities neither improve their services.

Day’s sales in receivable is the average of number of days that a company usually takes before collecting the credit sales. Walmart takes on average 5 days to collect the money, While Boeing takes on average 29 days to collect credits sales. In this case, Boeing takes longer times to collect the money.

The days in inventory can give a lot information and can show the ratio of the numbers that is need to know on how many days that inventory has had to be held in warehouse, before been ship to stores, purchase by customers. The receivable can be compared to the business sales track activity and then can show the ratio. These is call the average collection period or the days sales outstanding. The comparison can be used to indicate these periods to show when customers are going to pay off their dues that company needs. Now, when it comes to low ratio indicates can show better outcome. These can imply that customers are purchasing more inventory within shorter period. The high statistic can imply that customers could buy more of the inventory, switch can hold inventory for longer