Hcs/405 Health Care Financial Accounting

Introduction

The Patton-Fuller Community Hospital is a for-profit, 600-bed, full-service hospital that strives in providing cutting edge patient care. Since 1975, the hospital has provided Northwest valley with exquisite care for both inpatient and outpatient treatment. The Patton-Fuller Community Hospital is owned and controlled by a 14 person board, 12 of whom are active physicians, and owners of the hospital, the chief executive officer (CEO), and the chief financial officer (CFO). Together, the board works on a budget that benefits them and the hospital. The goal is to make a profit while providing patients with the best care around (Patton-Fuller Community Hospital, 2009). This is a summary of the financial statements published for the 2008-2009 year.

How did the audited and unaudited financial statements differ?

After examining the financial statements of the audited and unaudited Patton-Fuller Community Hospital Statement of Revenue and Expenses for 2009 and 2008, there is a distinct difference when examining the statements. The statements show a difference in dollar amounts relating to total expenses, operating income, and net income. The provision for doubtful accounts show an increase of $1,000 in the audited statement, while the decrease in the operating income dropped from $689 to $311, a difference of $378 and net income dropped from $627 to $373, a difference of $254. These decreased figures show up on the audited statement. The unaudited statement shows the larger amounts.

Are the financial ratios for the hospital improving? Explain

Susanna

Relationship between revenue sources and expenses on Patton- Fuller’s financial performance

The sources of revenue for the Patton-Fuller Community Hospital are mostly from patient care. The other revenues come through grants or donations from private companies, and the government. Expenses are accrued through numerous portals, one being employee salaries, and another being upkeep, and...