MEETING WITH DR. DOCTOR The CMO Dr. Doctor tells you: We only have eight physicians who practice at CMMC, but they have been very loyal to the medical center and the community. Most of the physicians are in family practice, though we have one general surgeon and one orthpedic surgeon who also runs a physi- cal therapy clinic. MEETING WITH MR. OPERATOR Mr. Operator, the COO and a recent graduate from a program in healthcare administra- tion, expresses the following concerns regarding the hospital: It's easy to understand how we lost money last year-Mr. Chief just won't say no. Our revenues are down because of the pandemic and our expenses continue to increase. While we have applied for COVID-19 relief, that probably will not be enough to get us out of financial trouble. Furthermore, we need your help on some potential problems. Mr. Operator asks you to do the following. [Note: For reference, see corresponding chapters in this textbook as noted at the end of each step, and use the additional information in the tables at the end of the case study.] 1. After reading the case, provide a list of questions, concerns, or requests for additional information to Mr. Chief and copy me. Develop a non-GAAP [generally accepted accounting principles] statement of operations (start with gross patient service revenue) and balance sheet for 2020 (you can assume the format and numbers are correct on the 2019 balance sheet, and you can further assume that all balances carry forward to the 2020 balance sheet with the exception of accounting for the profit or loss from the 2020 statement of operations). With the exception of starting with gross patient service revenue, please ensure that you prepare the financial statement in current GAAP. Please use ratio analysis to analyze the ratios (use data from Optum's 2018 Almanac of Hospital Financial and Operating Indi- cators for comparative statistics-use the median for critical access hospitals which is provided in Table II [at the end of this case study]). [See chapter 3.]