Question
As a healthcare facility manager, there are limiting factors that must be thought about while reviewing financial statements. Cost of medical supplies and equipment increases
As a healthcare facility manager, there are limiting factors that must be thought about while reviewing financial statements.
Cost of medical supplies and equipment increases substantially. Over the years, I have seen the cost of medical supplies increase substantially, especially within the last year. This cost could lead to healfthcare facilities exceeding budgets, or budgets not being made due to higher costs. Take for instance the pandemic and the impact it made on Medical Supplies, from the records I have kept, this is what I saw:
Units Per Pack | 2019 Cost Per Pack | 2021 Cost Per Pack | |
Lab Coats (SM - XL) | 10 | $ 10.99 | $ 49.99 |
Nitrile Gloves | 3000 | $ 12.56 | $ 38.99 |
Face Masks | 50 | $ 11.47 | $ 69.99 |
Our overall expenses have increased, our donations have decreased and our financial gains have not made much of an impact for our organization. As a non-profit organization, this scenario has the potential to place us in a very serious financial situation. As costs increase and revenue decreases, we need to start eliminating FTE in order to compensate for the increased costs. These types of situations can never be anticipated; what is anticipated is that there will be a gradual increase from one year, to the next. These icnreases are incrimental and often allow an organization to absorb the costs incurred. With our other vendors, we typically see an increase of no more than 5%; at teh end of our fiscal year, I am usually compiling information for our accounting department that details what the anticpated costs will be for specific items that we routinely order and set up cost accounts for.
It can only be assumed that the current situation of the company is not how the company performed in years prior. This causes instability which is a huge red flag for investors.
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