Solution
Kuldeep answered on
Jul 12 2020
Running head: Financial Health
Financial Health
Financial Health
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Contents
Introduction 3
Part 1 3
Part 2 6
Conclusion 7
References 8
Introduction
Pearland Medical Center reported 2012 revenues of $1,500,000,000 and 2013 revenues of $1,250,000,000. Sources of income include 25% of patient-paid income, 50% of third-party payers' income, and the remaining 25% of Grant's an investment grant portfolios. In the past two years, medical centers have spent $15,000,000 a year on marketing. In 2012, the average daily patient census in the hospital was 570, compared with 470 in 2013; in 2012, the number of hospital stays was 202,920 days, and in 2013 it was 171,500 days. The Pearland Medical Center report that operating expenses of about $500 million in 2012; with layoffs and restructuring, operating expenses in 2013 decreased by $200 million. The two-year depreciation charge is $50,000,000. The medical center spends $20,000,000 a year on research along with education. The administration expects that the patient population will not grow much in the coming year and may need to invest in new equipment. Non-profit organizations do not pay dividends or taxes on shareholders.
Part 1
Hospitals and medical centers can obtain funds internally through income or through debt, donations, grants, and gifts. Grants are often competitive, funds may be limited, and contributions are unpredictable. Large hospitals use long-term debt to obtain funds, but the organization's credit characteristics affect the decision to choose debt financing. It is necessary to assess financing needs to determine the best financing option, and the leadership of Pearland Medical Center assesses the organization's ability to use different financing options (Angeli & Maarse, 2012). The Foundation investigates the financial status of the medical center and pays more attention to the income statement to determine how income streams and expenses affect the net income level. Any organization must pay fees and costs, while revenue indicates the likelihood of a profit increase. To understand the company's expected return and potential financial desires, ask Pearland Medical Center owners and accountant to show the expected financial statements of health center. Balance Sheet, health center profit, as well as loss statements, cash flow statements, and tax refunds, have been the main identification of the company's health over the past three years. These documents help with some financial analysis to solve some financial problems and provide a
oad range of financial information. If the business is based on a product, then double check its list. For the first time, buyers often have a stock...