Hcs 405

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“Financial Statements Review”

HCS/405 Health Care Financial Accounting

Financial Statements Review

Quality patient care is the key to a hospital’s success and the shareholders in Patton – Fuller Community Hospital, along with the physicians are motivated to provide the best patient care possible. The audit report reflects the commitment to quality patient care that has allowed Patton – Fuller Community Hospital us to develop in the community (Patton-Fuller, 2009).

Audited and Unaudited Financial Statement Differences

Audited Statements differ from unaudited statements by less prone to errors, and rigorous standards. It should not be confused with an auditor’s opinion. Audited, during a set period presents a summary of financial transactions for a company, and use statements, outside stakeholders to make investment decisions about the company, which adds a level of assurance for investors. Unaudited Financial Statements are more prone to errors and less rigorous standards. It is an accounting report that has not been checked for accuracy by corporate. In other words, when it comes to completeness, regulatory compliance, and mathematical correctness, the financial auditors cannot tell whether the data summaries will pass.

Effect of Revenue Sources on Financial Reporting

The most commonly used margin to measure a hospital’s financial performance is the operating margin. It takes a hospital’s overall operating revenue and compares it against its overall operating expenses. The overall operating revenue is the amount of remaining patient revenue and other operating revenue received or expected to be received from third-party payers and patients for the services the hospital provides.

Total margin is the ration comparing a hospital’s received income against its total operating revenue and the total margin includes income from investments as well. This can increase or decrease in any given year. Financial statement...