Health Care Case Study: Financial Statements Essay

AbstractAn empowered organization is wholeness in which individuals have the knowledge, skill, desire, and opportunity to personally succeed in a mood that leads to collective organizational success, (Covey. 2011). fiscal counsel within a health carry off organization is crucial to the success and stability of the organization. In this summary monetary nurture on Patten Fuller infirmary get out be revealed. Specifically, the differences between audited and unaudited rehearsals and coverage on the hospitals ratios will be acceptd. Information related to the family relationship on tax receipts sources and expenses will include how the hospital revenues and expenses argon grouped for mean and control.Audited and Unaudited DifferencesDuring the years of 2008 and 2009 the Patton-Fuller biotic community Hospitals residue sheet had some differences with the patient of accounts of about $1,000,000. The discrepancies between the 2 amounted to $1,000,000 these discrepancie s 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). Then there were discrepancies on the recital of Revenue and Expenses of about 1,000,000 during 2009. The discrepancies between the 2 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. answers of Revenue Sources on Financial ReportingA companys revenue comes from a variety of sources, including the gross revenue of goods interests on loans, and income from renting or leasing. accountants first record revenue in informal accounting ledgers to confidential information capital as it comes into the company. Information ledgers argon transferred to more formal, official financial statements. Th e income statements, balance sheets, retained earnings statements and statements of cash mixs ar the four basic types of financial statements affect by revenue sources.Revenues and Expenses Grouped for supply and ControlThe hospitals revenues and use of goods and works are plans and cohesively to track revenues and expenditures efficiently. The deuce main categories of revenue are, nonrevenue producing, and revenue producing. The nonrevenue producing work have ii subdivisions, general function, and subscribe services. General services are services, much(prenominal) as maintenance, and dietary. The support services are administrative constitutes relate to employee services, such(prenominal) as salaries, and employee welfare services. Revenue producing has two groups nursing services and other passe-partout services. Nursing services has five price centers ranging from the intensive care units to the operating path. master copy services have 15 cost centers, such as e mergency room and pharmacy. These cost centers agree to specific expenditure categories.Expenditure grouping is separate into two categories, diagnoses, and procedures. Most revenue in health care organizations is either diagnoses or procedures. major diagnostic categories (MDCs) group costs with a 27-classification system for diagnosis-related groups (DRGs). Each DRG represents a form of the services for patients. This classification assigns procedures provided to patients with current adjective terminology (CPT) codes. CPT codes represent a lean of descriptive terms and identifying codes for identifying medical services and procedures performed (Baker & Baker, 2011, p. 44).ConclusionDiscrepancies were found in three areas between the audited and unaudited statements. The differences between the statements were capacious with patient accounts showing a $1,000,000 difference, the statement of revenue and expenses showing a $1,000,000 difference, and a net income difference o f $254,000. Corporate revenue comes from many sources. Revenue is reported on various financial forms like income statements, balance sheets, retained earnings statements, and cash flow statements, which are the four 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 calibrate the procedures into CPT codes identifying the services and procedures for compensation.ReferenceBaker, J.J., & Baker, R.W. (2011). health care finance Basic 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). yearly Report 2009. Virtual Organization Portal. Retrieved whitethorn 27, 2011 from University of Phoenix