Question 2 Please Thanks

1. Although our overall gross charges stayed about the same, our system had an increase in net patient service revenue from prior year, and our days cash on hand is still higher than the market average. Furthermore, contractual adjustments decreased 5% from prior FY based on new contracting. Our net assets also grew over the same time period, so the system's balance sheet is very strong. Charity care and bad debt also both increased over this period, but were ultimately offset by the increase in revenue. Why do we even report things like revenue? Aren't we a non-profit, as in "we do not need to make a profit"? Shouldn't charges and revenue be the same number? How can charges stay the same, but our net revenue go up? How is charity care and bad debt different? Isn't anything unpaid considered "bad debt" to the system? 2. Now focusing on our service line performance, despite our department charges being higher than the previous year, our net revenue has decreased slightly from prior YTD. Our total department encounters did increase in that time period, however. Our payer mix shifted slightly, with Payer A increasing by 10% (to 65% total) and Payer B decreasing by 10% (to 30% total). Payer C made up most of the difference. As you all may know, Payer A reimburses us about 105% of Medicare, whereas Payer B pays us 125% of Medicare. Then how is our department revenue down from last year? As you said, we are all seeing more patients than before. Is 105% of Medicare better or worse than 125% of Medicare? If a payer reimburses us poorly, why do we see those patients at all? 1. Although our overall gross charges stayed about the same, our system had an increase in net patient service revenue from prior year, and our days cash on hand is still higher than the market average. Furthermore, contractual adjustments decreased 5% from prior FY based on new contracting. Our net assets also grew over the same time period, so the system's balance sheet is very strong. Charity care and bad debt also both increased over this period, but were ultimately offset by the increase in revenue. Why do we even report things like revenue? Aren't we a non-profit, as in "we do not need to make a profit"? Shouldn't charges and revenue be the same number? How can charges stay the same, but our net revenue go up? How is charity care and bad debt different? Isn't anything unpaid considered "bad debt" to the system? 2. Now focusing on our service line performance, despite our department charges being higher than the previous year, our net revenue has decreased slightly from prior YTD. Our total department encounters did increase in that time period, however. Our payer mix shifted slightly, with Payer A increasing by 10% (to 65% total) and Payer B decreasing by 10% (to 30% total). Payer C made up most of the difference. As you all may know, Payer A reimburses us about 105% of Medicare, whereas Payer B pays us 125% of Medicare. Then how is our department revenue down from last year? As you said, we are all seeing more patients than before. Is 105% of Medicare better or worse than 125% of Medicare? If a payer reimburses us poorly, why do we see those patients at all