Patton-Fuller Community Hospital- Business Proposal

Analyzing the Financial Statements for 2008-2009 (Balance Sheet, and Statement of Revenues and Expenses): ASSETS: Current Assets Cash and cash equivalents 2009 22,995 to 2008 41,851 = (18,856) = -45% Assets of limited use 2008 27,594 to 2009 41,851= (14,257) = -34.07% Settlement on Managed care contracts 2009 58,787 to 2008 37,666 = 21,121 =156% Other receivables 2009 0 to 2008 87 = (87) = -87% Inventories 2009 18,396 to 2008 8,370 = 10,026 = 220% Prepaid Expenses 2009 95 to 2008 201 = (106) = Total Current Assets: 2009 127,867 to 2008 130,02= OTHER ASSETS: Funded Depreciation 2009 137,970 to 2008 167,404 Held under bond indenture 2009 73,584 to 2008 75,332 Total assets: 2009 587,767 to 2008 548,536 LIABILITIES AND EQUITY: Current Liabilities 2009 14,599 to 2008 4,185 2009 9,198 to 2008 4,185 Bond Interest Payable 2009 10 to 2008 10 = 0 Total Current Liabilities: 2009 23,823 to 2008 8,380 Other Liabilities Long-term debt 2009 452,945 to 2008 209,255 adjustable interest rates 2009 14,599 to 2008 4,185 Net long-term debt 2009 438,346 to 2008 205,069 Total liabilities 2009 452,945 to 2008 209,254

Please Identify the Current Ratio, The debt to asset ratio=Liabilities, and Profit Margin?

Current Ratio: The debt to asset ratio = Liabilities/Assets Profit Margin:

Revenues Net Patient Revenue $459,900 $418,509 Other Revenue $3,082 $2,805 Total Revenues $462,982 $421,314 Expenses Salaries and benefits $220,752 $214,129 Supplies $74,584 $71,346 Physician and professional fees $110,376 $107,065 Utilities $1,200 $1,164 Other $1,840 $1,785 Depreciation & Amorization ("non-cash" expenses) $36,036 $24,955 Interest $3,708 $3,597 Provision for doubtful accounts (1) $14,797 $13,383 Total Expenses $463,293 $437,424 Operating Income ($311) ($16,110) Non-operating income (loss) Investment income ($62) $264 Net Income ($373) ($15,846) (1) includes adjustment due to audit

Patton - Fuller Community Hospital Statement of Revenue and Expense 2009 and 2008 (In thousands) (Audited)

2009 2008

Revenues

Net Patient Revenue $459,900 $418,509 Other Revenue $3,082 $2,805 Total Revenues $462,982 $421,314

Expenses

Salaries and benefits $220,752 $214,129 Supplies $74,584 $71,346 Physician and professional fees $110,376 $107,065 Utilities $1,200 $1,164 Other $1,840 $1,785 Depreciation & Amorization ("non-cash" expenses) $36,036 $24,955 Interest $3,708 $3,597 Provision for doubtful accounts (1) $14,797 $13,383 Total Expenses $463,293 $437,424

Operating Income ($311) ($16,110)

Non-operating income (loss)

Investment income ($62) $264

Net Income ($373) ($15,846)