Financial Data Analysis
Dawn Lawrence
HCS/577
University of Phoenix
July 28, 2020
| Patton-Fuller Community Hospital | ||||||
| Statement of Revenue & Expense | ||||||
| 2009 and 2008 | ||||||
| (in thousands) | ||||||
| (audited) | ||||||
| REVENUE | 2009 | 2008 | $ Change | % Change | Explanation of Changes Based on the Annual Report – WHY did the changes occur? (If the cell is grayed out then you do not need to provide an explanation) | |
| Net patient revenue | 459,900 | 418,509 | 41,391 | 9.89% | There is more understanding of the changes in the contract between entities that are involved in the payment of medical claims on behalf of the insured | |
| Other revenue | 3,082 | 2,805 | 277 | 9.88% | There was an unlimited collection of funds from various people. | |
| Total Revenue | 462,982 | 421,314 | 41,668 | 9.89% | ||
| EXPENSES | ||||||
| Salaries and benefits | 220,752 | 214,129 | 6,623 | 3.09% | ||
| Supplies | 74,584 | 71,346 | 3,238 | 4.54% | The hospital bought more supplies at a favorable price; this, in turn, reduces the expenditure in the following financial year. | |
| Physician and professional fees | 110,376 | 107,065 | 3,311 | 3.09% | ||
| Utilities | 1,200 | 1,164 | 36 | 3.09% | ||
| Other | 1,840 | 1,784 | 56 | 3.14% | ||
| Depreciation & amortization (noncash expenses) | 36,036 | 24,955 | 11,081 | 44.40% | The financial obligation of the hospital, which is to be repaid in a given period appropriately, shows a favorable sum of profit. The profit gained is then financed on the mechanisms used to obtain the loan. | |
| Interest | 3,708 | 3,597 | 111 | 3.09% | ||
| Provision for doubtful accounts | 14,797 | 13,383 | 1,414 | 10.57% | This healthcare center has less possibility to achieve what is required in terms of funds that are needed; therefore, the entity that is involved in paying medical claims is in the position to give cash to the healthcare center. This situation is caused by the more usage of money exceeding what the healthcare center received. | |
| Total Expenses | 463,293 | 437,423 | 25,870 | 5.91% | ||
| INCOME | ||||||
| Operating Income | (311) | (16,110) | 16,421 | 101.93% | ||
| Investment Income | (62) | 264 | 202 | 76.52% | The decrease is due to the low amount of stock and bonds in the market | |
| Net Income | (373) | (15,846) | 16,219 | 102.35% | ||
References
Koop, G. (2006). Analysis of financial data (p. 250). Oxford: John Wiley & Sons.