Below are the abridged operating statements of two not-for-profit hospitals that serve similar populations.

1. What is the performance indicator of the hospitals?
2. Using the performance indicator, which hospital reported better operations? Does anything else reported give you pause about this assessment?
3. Using just this data, what are some fundamental differences between these two entities that might be important for evaluating financial operations?
4. How much revenue do each earn from patient services? Do you think this difference between the two has any implications?

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Statement of Operations for the Year Ending December 31, 2018 HospitalA Hospital IB Operating revenues Net patient service revenue $3,906.626 177.360 $4,083,986 $2,678,248 4,789,169 $7,467,417 Grants and contracts Total operating revenue Operating expenses Salaries and Fringe benefits Supplies $1,956,341 689,542 1,503,901 102,312 25,980 $4,278,076 $3,359,110 1,312,890 2,021,908 1,736,930 456,712 S7.150,620 S 316.797 wages Interest Total operating expenses Income from operations 194 Change in pension liabilities 135,670 (247,153) Net assets released from restrictions 7,900 0 Increase/(decrease) in unrestricted net assets 50.4 69,644