Requirement B: Revenue Mix (Strategy-Related Considerations) The 10-K filing of Universal Health Services, Inc. describes the mix of revenue sources, as depicted in Table 5.3-3. Table 5.3-3: Patient Revenue Mix PERCENTAGE OF NET PATIENT REVENUES 2000 1999 1998 1997 1996 Third Party Payors Medicare 32.3% 34.3% 35.6% 35.6% Medicaid 11.5% 11.3% 14.5% 15.3% Managed Care (HMOs and PPOs) 34.5% 31.5% 27.2% 19.1% N/A Other Sources 21.7% 22.4% 27.2% 30.8% 49.1% Total 100% 100% 100% 100% 100% N/A-Not available (Source: 10-K filed 3/28/2001) Table 5.3-1: Financial Comparisons of the Not-for-Profit Entities St. Jude Children's Research Hospital Form 990 American Lebanese Syrian Associated Charities, Inc. (ALSAC) Form 990 Fiscal Year Ended 1999 $91,978,426 $231,793,748 Contributions, gifts, grants and similar amounts received: Direct public support Indirect public support 2,906,934 Government contributions (grants) 31,469,447 46,034,710 Program service revenue, including government fees and contracts (.e., health insurance revenue) Accounts receivable 24,217,029 4,230,764 Pledges receivable 23,604,748 Allowance for doubtful accounts 9,363,328 Program service expenses 99,282,906 Program service expenses: Research 87,225,830 5,471,186 Program service expenses: Education and training Program service expenses: Medical Services 93,735,602 -4,023,815 65,891,269 Reconciliation of revenue, gains, and other support to audited numbers: net unrealized gains on investments -4,023,815 65,891,269 Reconciliation of revenue, gains, and other support to audited numbers: net unrealized gains on investments Deferred grant revenue 1,857,628 (Statement 5) 91,978,426 (Statement 7) Support from American Lebanese Syrian Associated Charities, Inc. 91,978,426 (paid per Statements 4, 6) Excluded contributions 2,746,295 (Statement 1) Excess or (deficit) for the year -10,933,191 120,521,982 Net assets or fund balances at end of year 199,707,440 994,501,910 Temporarily restricted 15,715,890 Permanently restricted 14,000,000 247,147,826 Total liabilities 21,956,792 7,017,192 157,628 Schedule of deferred debits & credits by contract (FAS 116 adjustment noted to result in this deferred revenue) Table 5.3-2: Universal Health Services, Inc.'s Financial Excerpts* Income Statements (in thousands) Reported 1999 Calendar Year Net revenues $2,042,380 Operating charges 1,913,346 Components: Salaries, wages, and benefits 793,529 Provision for doubtful accounts 166,139 Lease and rental expense 49,029 Interest expense, net 26,872 Net income 77,775 Total assets 1,497,973 Total liabilities 856,362 Total retained earnings 482,960 Capital stock 306 Paid-in capital in excess of par 158,345 1. How does this revenue mix compare with the revenue blend of the not-for-profit entity, St. Jude Children's Research Hospital (ALSAC)? Access the latest SEC filing and compare the reported revenue mix; has it changed? What does that imply as to the strategies of investor-owned hospitals in managing risk and ensuring adequate capital relative to not-for-profit entities? An opportunity exists to explore the greater social and political questions that are frequently debated about the compatibility of profit-oriented entities and quality of health care, relative to not-for-profit entities. As background, identify what the latest SEC filings report concerning charity care. Requirement B: Revenue Mix (Strategy-Related Considerations) The 10-K filing of Universal Health Services, Inc. describes the mix of revenue sources, as depicted in Table 5.3-3. Table 5.3-3: Patient Revenue Mix PERCENTAGE OF NET PATIENT REVENUES 2000 1999 1998 1997 1996 Third Party Payors Medicare 32.3% 34.3% 35.6% 35.6% Medicaid 11.5% 11.3% 14.5% 15.3% Managed Care (HMOs and PPOs) 34.5% 31.5% 27.2% 19.1% N/A Other Sources 21.7% 22.4% 27.2% 30.8% 49.1% Total 100% 100% 100% 100% 100% N/A-Not available (Source: 10-K filed 3/28/2001) Table 5.3-1: Financial Comparisons of the Not-for-Profit Entities St. Jude Children's Research Hospital Form 990 American Lebanese Syrian Associated Charities, Inc. (ALSAC) Form 990 Fiscal Year Ended 1999 $91,978,426 $231,793,748 Contributions, gifts, grants and similar amounts received: Direct public support Indirect public support 2,906,934 Government contributions (grants) 31,469,447 46,034,710 Program service revenue, including government fees and contracts (.e., health insurance revenue) Accounts receivable 24,217,029 4,230,764 Pledges receivable 23,604,748 Allowance for doubtful accounts 9,363,328 Program service expenses 99,282,906 Program service expenses: Research 87,225,830 5,471,186 Program service expenses: Education and training Program service expenses: Medical Services 93,735,602 -4,023,815 65,891,269 Reconciliation of revenue, gains, and other support to audited numbers: net unrealized gains on investments -4,023,815 65,891,269 Reconciliation of revenue, gains, and other support to audited numbers: net unrealized gains on investments Deferred grant revenue 1,857,628 (Statement 5) 91,978,426 (Statement 7) Support from American Lebanese Syrian Associated Charities, Inc. 91,978,426 (paid per Statements 4, 6) Excluded contributions 2,746,295 (Statement 1) Excess or (deficit) for the year -10,933,191 120,521,982 Net assets or fund balances at end of year 199,707,440 994,501,910 Temporarily restricted 15,715,890 Permanently restricted 14,000,000 247,147,826 Total liabilities 21,956,792 7,017,192 157,628 Schedule of deferred debits & credits by contract (FAS 116 adjustment noted to result in this deferred revenue) Table 5.3-2: Universal Health Services, Inc.'s Financial Excerpts* Income Statements (in thousands) Reported 1999 Calendar Year Net revenues $2,042,380 Operating charges 1,913,346 Components: Salaries, wages, and benefits 793,529 Provision for doubtful accounts 166,139 Lease and rental expense 49,029 Interest expense, net 26,872 Net income 77,775 Total assets 1,497,973 Total liabilities 856,362 Total retained earnings 482,960 Capital stock 306 Paid-in capital in excess of par 158,345 1. How does this revenue mix compare with the revenue blend of the not-for-profit entity, St. Jude Children's Research Hospital (ALSAC)? Access the latest SEC filing and compare the reported revenue mix; has it changed? What does that imply as to the strategies of investor-owned hospitals in managing risk and ensuring adequate capital relative to not-for-profit entities? An opportunity exists to explore the greater social and political questions that are frequently debated about the compatibility of profit-oriented entities and quality of health care, relative to not-for-profit entities. As background, identify what the latest SEC filings report concerning charity care