Patton-Fuller Financial Statement Review
Patton-Fuller Financial Statement Review
Marlyn Aguirre
Kristy Borowicz
Carrie "Shellie" Cobbs
Jessica Wilson
Health Care Financial Accounting
HCS 405
Robert Hammer
November 05, 2013
Patton-Fuller Financial Statement Review
Understanding how finance affects business is essential to the success and longevity of the business. How a business earns its income, raises money, and how a business pays its bills and invests in the businesses future affects the financial growth of the company. The process of making money and spending money applies to health care just the same as other industries. The financial manager, and to some degree the non-financial manager must understand how to interpret, control, and manage the influxes of income …show more content…
This discrepancy shows on the 2009 unaudited statement of $59,787,000 and the 2009 audited statement of $58,787,000. This accounts for the $1,000,000 discrepancy in the patient accounts received. In addition, Patton-Fuller Community Hospital’s Statement of Revenue and Expense reports for 2008-2009 shows a discrepancy of $1,000,000 in the provision for doubtful accounts. This discrepancy shows on the 2009 unaudited report of $13,797,000 and the 2009 audited report of $14,797,000. This accounts for the $1,000,000 discrepancy in the provision for doubtful accounts. The provision for doubtful accounts is normally based on the company’s historical data on debts from customers who cannot or do not pay their bill. Additionally, the 2009 unaudited and audited reports of operating income, exposes a $378,000 discrepancy on the statements of revenue and expenses. This type of over-estimation of income could cause a sizeable amount of stress on the organization’s funds. The net income is off by $254,000 as …show more content…
The revenue is grouped with the two categories net patient revenue and other revenue. The net patient revenue consists of gross revenue generated by the hospitals contractual agreements with the insurance companies or managed care programs. The second category is the “other revenue.” “Other revenue” generates from outside donations and has only one logical expense that deals with the revenue stream. If the marketing departments increased their efforts the donation revenue would be a collaboration; however, if this could not the departments were ineffective and the marketing department must change the methods or consider reducing the department altogether. If there is an increase in patients, expect physician and other professional costs to increase confirming that the net patient revenue increases if it has not done so
Marlyn Aguirre
Kristy Borowicz
Carrie "Shellie" Cobbs
Jessica Wilson
Health Care Financial Accounting
HCS 405
Robert Hammer
November 05, 2013
Patton-Fuller Financial Statement Review
Understanding how finance affects business is essential to the success and longevity of the business. How a business earns its income, raises money, and how a business pays its bills and invests in the businesses future affects the financial growth of the company. The process of making money and spending money applies to health care just the same as other industries. The financial manager, and to some degree the non-financial manager must understand how to interpret, control, and manage the influxes of income …show more content…
This discrepancy shows on the 2009 unaudited statement of $59,787,000 and the 2009 audited statement of $58,787,000. This accounts for the $1,000,000 discrepancy in the patient accounts received. In addition, Patton-Fuller Community Hospital’s Statement of Revenue and Expense reports for 2008-2009 shows a discrepancy of $1,000,000 in the provision for doubtful accounts. This discrepancy shows on the 2009 unaudited report of $13,797,000 and the 2009 audited report of $14,797,000. This accounts for the $1,000,000 discrepancy in the provision for doubtful accounts. The provision for doubtful accounts is normally based on the company’s historical data on debts from customers who cannot or do not pay their bill. Additionally, the 2009 unaudited and audited reports of operating income, exposes a $378,000 discrepancy on the statements of revenue and expenses. This type of over-estimation of income could cause a sizeable amount of stress on the organization’s funds. The net income is off by $254,000 as …show more content…
The revenue is grouped with the two categories net patient revenue and other revenue. The net patient revenue consists of gross revenue generated by the hospitals contractual agreements with the insurance companies or managed care programs. The second category is the “other revenue.” “Other revenue” generates from outside donations and has only one logical expense that deals with the revenue stream. If the marketing departments increased their efforts the donation revenue would be a collaboration; however, if this could not the departments were ineffective and the marketing department must change the methods or consider reducing the department altogether. If there is an increase in patients, expect physician and other professional costs to increase confirming that the net patient revenue increases if it has not done so