Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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
thanks
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started