Health Care Case Study: Financial Statements Essay

mouseAn empowered memorial tablet is one in which individuals sacrifice the knowledge, skill, desire, and opportunity to personally stick with in a way that leads to corporate organizational success, (Covey. 2011). Financial management at heart a health administer organization is crucial to the success and stability of the organization. In this summary fiscal information on Patten Fuller Hospital willing be revealed. Specifically, the difference of opinions among audited and unaudited relations and reporting on the hospitals ratios will be included. Information related to the relationship on tax revenue sources and expenses will include how the hospital revenues and expenses are mathematical grouped for planning and control.Audited and Unaudited DifferencesDuring the geezerhood of 2008 and 2009 the Patton-Fuller union Hospitals dimension sheet had some differences with the patient accounts of near $1,000,000. The discrepancies between the two amounted to $1,000,000 t hese discrepancies would be the audited statement that equaled to $58,787,000 and the unaudited statement in 2009 that amounted to $59,787,000 (Patton-Fuller Community Hospital, 2011). indeed there were discrepancies on the Statement of taxation and Expenses of about 1,000,000 during 2009. The discrepancies between the two that amounted to $1,000,000 would be the audited statement that equaled to $14,797,000 and the unaudited statement in 2009 that amounted to $13,797,000 (Patton-Fuller Community Hospital, 2011). The net income for the audited statement is 373,000 and, the unaudited is 627,000.Effects of gross Sources on Financial reportA companys revenue comes from a variety of sources, including the sales of goods interests on loans, and income from renting or leasing. Accountants first record revenue in informal accounting ledgers to track expectant as it comes into the company. Information ledgers are transferred to more formal,official financial statements. The income stat ements, balance sheets, hold shekels statements and statements of cash flows are the cardinal basic types of financial statements affected by revenue sources.Revenues and Expenses Grouped for Planning and giveThe hospitals revenues and expenditures are plans and cohesively to track revenues and expenditures efficiently. The two main(prenominal) categories of revenue are, nonrevenue producing, and revenue producing. The nonrevenue producing function have two subdivisions, general run, and support services. commonplace services are services, such(prenominal) as maintenance, and dietary. The support services are administrative make ups relate to employee services, such as salaries, and employee welfare services. Revenue producing has two groups nursing services and other professional services. nursing services has five cost centers ranging from the intensifier care units to the operating room. Professional services have 15 cost centers, such as emergency room and pharmacy. These cost centers correlate to specific expenditure categories. phthisis grouping is separate into two categories, diagnoses, and procedures. most(prenominal) revenue in health care organizations is either diagnoses or procedures. Major diagnostic categories (MDCs) group costs with a 27-classification strategy for diagnosis-related groups (DRGs). Each DRG represents a category of the services for patients. This classification assigns procedures provided to patients with current procedural lyric (CPT) codes. CPT codes represent a listing of descriptive terms and identifying codes for identifying medical services and procedures performed (Baker & Baker, 2011, p. 44). proofDiscrepancies were found in three areas between the audited and unaudited statements. The differences between the statements were vast with patient accounts masking a $1,000,000 difference, the statement of revenue and expenses screening a $1,000,000 difference, and a net income difference of $254,000. Corpora te revenue comes from many sources. Revenue is reported on various financial forms like income statements, balance sheets, retainedearnings statements, and cash flow statements, which are the 4 basic types of financial statements affected by revenue. Different categories and services exist to group revenues and expenditures into cost centers that correlate to different DRGs. DRGs break down the procedures into CPT codes identifying the services and procedures for compensation. telephone extensionBaker, J.J., & Baker, R.W. (2011). Health care finance canonical tools for nonfinancial managers (3rd ed.).Jones & Bartlett.Covey, S. (2011). Inspirational Quotes for Business sanction and Delegation. Retrieved from http//humanresources.about.com/od/workrelationships/a/quotes_empower.htmPatton-Fuller Community Hospital, (2011). annual Report 2009. Virtual Organization Portal. Retrieved whitethorn 27, 2011 from University of Phoenix