Keywords: Financial Statements, HealthCare, Palomar Health, Tri-City Medical Center
Comparative Analysis on Palomar Health and Tri-City Medical Center
Looking at Palomar Health (PH) and Tri-City Medical Center (TC) who are both not-for-profit
In this report, we will revisit and evaluate the three methods of analysis: horizontal, vertical, and ratio. Next, we are to summarize each method, and discuss how the financial information is used to make a particular decision. Then, provide a scenario in a health care situation in which a given method of analysis might be used. I will explain each analysis beginning in order of the Horizontal Analysis with the Vertical Analysis and lastly the Ratio Analysis. Each analysis is different from the next and although the horizontal and vertical are similar, they show different aspects of a company by year. A ratio analysis is a combination of many different analyses and will be gone through individually so they are understandable.…
This paper will address the ratio computations to Patton-Fuller Community Hospital taken from Audited and Unaudited Reports from 2008-2009. From 2008-2009 the existing assets reduced, but showed a growth in the hospital’s responsibilities. The hospital is presently making adequate revenue to cover the debts, which equals to no profit. Revenue needs to rise to avoid the debts of the hospital from increasing. Providing excellence service will in turn increase the quantity of patients seen eventually increasing revenue.…
From these computations, taken from the Unaudited and Audited Reports from 2009 and 2008, if any occurred, and address what Patton-Fuller Community Hospital plans are within the next year to five years regarding any changes. In closing this paper will address the reasons that our team agrees or disagrees with the CEO’s report presented to the Board.…
The unaudited financial statement current ratio shows that the hospital is able at 24 to 1 ratio to pay their obligations. Since the ratio is higher than one, it tells us that the company is in good financial health. If we compare this unaudited ratio to the audited ratio we can see a change of ratio. The audited current assets are at $127,867 and the current liabilities are at $23,807. The ratio is represented by a 5 to 1. The ratio in both situations shows an efficiency of the hospital operating cycle and its ability to turn its products into cash. There is a significant change in the ratio when comparing the financial statements. It is important to understand that a high current ratio does not always mean a good thing because it depends on how fast the company can convert into cash their current…
The increase in assets in the year 2009 was 7%, which is caused by an increase in accounts receivable by 56%, inventories by 100% and increase in property plant and equipment by 41%. The hospital may have provided more credit to customers or consumers to raise the revenues and more investment in fixed assets and inventories to enhance the revenues. The Patton-Fuller Hospital organization seems successful, but not completely. The organization lacks in certain areas, as they were only able to raise their revenues by 10%. The increase in fixed assets and current assets have been financed by debt financing, which is evident from an increase in accounts payable and accrued expenses by 120% and net long term debt has increased by 114% as compared to the previous year. The decrease in…
Finance, understanding how it affects the smallest business to the largest organization, is the origin to financial success in businesses. According to Gitman (2006), finance is the art and science of managing money. Virtually every individual business and large organization, Be the organization for profit or non-profit, depends on the rates at which these entities earn, or raise money, and the rate at which they spend or invest these earned monies. Understanding these financial processes will enable the financial manager, or even the non-financial managers to more effectively interact with financial personnel, processes, and procedures.…
An increasing issue within the health care field is the inability to collect debt from the growing population of uninsured or underinsured patients. Healthcare organizations may be struggling to meet operational margins because the industry has never treated its customers like other retail-oriented sectors of the economy. A McKinsy and Company report states that hospitals incur sixty billion dollars in bad debt annually because they typically collect only ten to twenty percent of a total uninsured patient balance after service. (MacKenzie, 2009) This is due to a number of reasons, including poor accounting practices or a lack of patient information. This paper will discuss how one hospital, California’s Sutter Health, has taken steps to correct this issue. It will analyze the accounting practices put into place by Sutter Health and the success of this practice. This author will also provide an alternate solution to the issue of debt collection for self-pay patients as well as an opinion concerning the actions taken by Sutter Health.…
Eighty percent of patients at RRMC were Medicare or Blue Cross and the administration experienced much difficulty when it came to negotiating prices with Blue Cross due to monopoly”(Richards & Slovensky, 2004). In this market, buyers have high bargaining power because reimbursements rates are low. Because Medicare and Blue Cross held monopoly in these services area, negotiating prices remained extremely difficult for RRMC. The suppliers have lower bargaining power due to low Medicare reimbursements and difficulty negotiating prices with Blue…
The cost of health care in the United States remains an important concern for American consumers. The challenges for controlling costs and providing a better health care system are various and complex. These challenges, in many cases, are in the realm of the Department of Health and Human Services (HHS) or other federal or state agencies (Department of Justice, 2012). Hospitals continue to team up with other facilities, insurers and for-profit companies, although the cause of the bump in M&A activity varies. While some hospitals cite financial problems, others join forces because of collaboration mandated under the Affordable Care Act and changing reimbursement models, according to Minnesota Public Radio (Caramenico, 2012).…
Curtis, P & Roupas, T. (2009) Health care Finance, the performance of Public Hospitals and…
Beaumont Health System is a three-hospital regional health system with more than 1,725 beds with additional facilities that include nursing homes, home healthcare agency, research institute, primary and specialty care clinics, rehabilitation, cardiology, and cancer centers. offers a wide-range of services and programs to our adult and pediatric patients which includes Ninety-one medical and surgical specialties are represented on the Beaumont medical staff of more than 3,700 Michigan physicians with numerous community based medical centers throughout Detroit, Oakland, Macomb, and Wayne counties. The service area for Beaumont Hospital is Oakland County which consists of cities, villages, and townships with a population of 1,202,362 people. Approximately 30% of Oakland County's 483,698 households have children aged 18 years old or younger. Beaumont is the exclusive clinical teaching site for the Oakland University William Beaumont School of Medicine. The system draws on a rich history of pioneering medical research to serve the health needs of southeastern Michigan and advance healing techniques nationwide.…
The health care industry is a multi-million dollar industry. Health insurance, providers, technology management, and inpatient and outpatient procedures are among the many terms that we hear nowadays within this industry. The principal phrase that seems to be ringing in the ears of the government and policymakers are debt and cost-control. There are fundamental concepts that should be understood throughout the health care industry as it relates to finance. On one hand, many individuals have a general knowledge concerning health care organizations from the standpoint of insurance, copays, and deductibles. These constructs are more familiar to a person that has any health care needs due to the routine of having to provide some form of payment…
The quality of care has been given first priority in all healthcare systems. Even though medical knowledge has expanded over time, with increased use of sophisticated technology and increased levels of physician trainings, the care quality, investment returns, and medical errors depict a healthy care system that is extremely underperforming (World Health Report,2000; Institute of Medicine, 2001). In the US, the healthcare system is always struggling as a result of the existing mismatch between financial flow, and the complexity of handling patients. Many measures are however being employed by the US government towards implementing cost controls, as well as improving the efficiency of health care industry. This is the underlying reason why the paper will analyze why John Hopkins Hospital is among the top 100.…
Hospitals with higher fixed cost had less flexibility for patients than doctors who made allowances for financially stricken. The hospital’s decrease in patient payment went from receiving $200 for each patient to $60 per patient. The reduction in funds caused hospitals to seek out insurance plans. The plans would help the hospital have a steady cash flow without having financial problems later (1993). The creation of insurance plans was done in several different cities by nonprofit hospitals. To strengthen the income and increase patient…
1. Is it “fair” for the Dialysis Center to suffer in profitability, and hence for the department head to possibly lose his bonus, just because the Outpatient Clinic needs additional space?…