Question
Assignment 6.1: Profit and Loss Review the income statement in Table 7.2 from Chapter 7 of your Financial Statements and the DNP: Essential Knowledge for
Assignment 6.1: Profit and Loss
Review the income statement in Table 7.2 from Chapter 7 of your Financial Statements and the DNP: Essential Knowledge for Success textbook.
Table 7.2 Income Statement (Profit and Loss)
$ in 000's
| March 2017 | March 2016 | Change | 1-Year Growth | |
| Gross Patient Revenues | ||||
| Routine services | $150.000 | $142.500 | $7.500 | Increase5% |
| Inpatient ancillary | $62.500 | $49.350 | $13.150 | Increase27% |
| Outpatient ancillary | $118.000 | $96,500 | $21,500 | Increase22% |
| Other revenue | $2,500 | $2,150 | $350 | Increase16% |
| Total Gross Revenue | $333,000 | $290,500 | $42,500 | Increase15% |
| Deductions From Revenue | ||||
| Bad debt | $18,000 | $21,500 | $3,500 | Decrease16% |
| Government allowance diagnosis-related group (DRG) | $71,000 | $60,800 | ($10,200) | Increase17% |
| Insurance contracts managed care | $35,400 | $38,400 | $3,000 | Decrease8% |
| Charitable allowances | $13,600 | $12,500 | ($1,100) | Increase9% |
| Total Deductions | $138,000 | $133,200 | ($4,800) | Increase 4% |
| Net Revenue from Patient | $195,000 | $157,300 | $45,700 | Increase 24% |
| Operating Expenses | ||||
| Salaries | $90,250 | $79,200 | ($11,050) | Increase 14% |
| Benefits | $34,000 | $31,800 | (2,800) | Increase 7% |
| Supplies | $27,200 | $13,600 | ($13,600) | Increase 100% |
| Medical fees | $4,300 | $3,200 | ($1,100) | Increase 34% |
| Purchased services | $8,400 | $5,520 | ($2,880) | Increase 52% |
| Maintenance | $7,500 | $6,200 | ($1,300) | Increase 21% |
| Professional liability | $1,400 | $1,350 | ($50) | Increase 4% |
| Other | $700 | $350 | ($350) | Increase100% |
| Depreciation | $7,400 | $6,200 | ($1,200) | Increase 19% |
| Financing costs | $6,400 | $6,100 | ($300) | Increase 5% |
| Total Operating Expenses | $187,550 | $153,520 | $34,030 | Increase 22% |
| Net Income from Operations (pretax) | $7,450 | $3,780 | $3,670 | Increase 97% |
| % of Net Revenue (Margin) (Net Income/Net Revenue) | 3.82% | 2.40% | 1.42% |
Address thefollowing questions:
- From your analysis, you understand that the net margin for the organization has shown strong growth over the past year. What factor/s is/are driving this improved performance?
- What concerns do you have regarding current financial performance of this organization? As an executive leader within this organization, what priority issues should this organization address?
- Is your impression of the reported financial performance generally favorable or unfavorable?
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Macroeconomics
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
6th Canadian Edition
321675606, 978-0321675606
