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Start with the Income Statement, note how much the net operating revenues changed between the most recent year and the prior year. To the nearest

Start with the Income Statement, note how much the net operating revenues changed between the most recent year and the prior year. To the nearest tenth of a percent, what is the percentage increase or (decrease)?

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Going back to the Income Statement now, note the amount of Operating revenue for the most recent period. Assume that services during the year included these three patients: Mrs. Marple, a Medicare patient whose stay at Reston Hospital (one of HCAs owned hospitals) was for 7 days and who received services which HCA assigned in retail charges (otherwise termed gross revenue) of $25,000. The Medicare DRG payment for her case is expected to be $10,000; Mr. Chan, a patient with little income or assets and one whom the hospital classifies as a charity patient, stayed in the hospital 4 days and received services with gross charges amounting to $18,000; Mr. Friday stayed in the hospital for 3 days and received services with gross charges amounting to $28,000. Although Mr. Friday had no insurance, he did have a significant source of income and had a sizable amount of assets. Attempts by the hospital to locate Mr. Friday to settle his bill have proven fruitless, and currently he has moved and has left no forwarding address.

a. Where, if at all, and at what amounts will Mrs. Marples gross revenue and net expected reimbursement (net revenue) appear on the Income Statement?

b. Where, if at all, and at what amounts will Mr. Chans gross revenue and net revenue appear on the Income Statement?

c. Where, if at all, and at what amounts will Mr. Fridays gross revenue and net revenue appear on the Income Statement?

HCA HOLDINGS, INC. CONSOLIDATED INCOME STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013 (Dollars in millions, except per share amounts) Revenues before the provision for doubtful accounts Provision for doubtful accounts.. Revenues Salaries and benefits Supplies .... Other operating expenses .... Electronic health record incentive income Equity in earnings of affiliates Depreciation and amortization .. Interest expense ... Losses (gains) on sales of facilities Losses on retirement of debt ... Legal claim costs..... 2015 2014 2013 $ 43,591 $ 40,087 $ 38,040 3,913 3,169 3,858 39,678 36,918 34,182 18,115 16,641 15,646 6,638 6,262 5,970 7,103 6,755 6,237 (47) (125) (216) (46) (43) (29) 1,904 1,820 1,753 1,665 1,743 1,848 5 (29) 135 335 17 249 78 35,721 33,437 31,236 3,957 3,481 2,946 1,261 1,108 950 2,696 2.373 1,996 567 498 440 $ 2,129 $ 1,875 $ 1,556 10 Income before income taxes .. Provision for income taxes Net income... Net income attributable to noncontrolling interests Net income attributable to HCA Holdings, Inc. .... Per share data: Basic earnings per share ... Diluted earnings per share .... Shares used in earnings per share calculations (in millions): Basic .... Diluted $ 5.14 $ 4.30 $ 3.50 $ 4.99 $ 4.16 $ 3.37 414.193 426.721 435.668 445.066 450.352 461.913

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