Your response should be between 300-400 words.

In reviewing the attached snippet of Ross Memorial Hospital's 2021 financial statement (below), you notice that revenue from patients is down over $700,000 from 2020. At the same time, salaries and benefits are up over $5M for the same period. Of note, from 2019 to 2020, patient revenues increased slightly and salaries and benefits only increased a little over $1M. For this exercise, put yourself in the position of a hospital administrator.

Coupled with your knowledge of current events over the past 18 months, what are some explanations of the decline in patient revenues and the significant increase in employee salaries and benefits?

The Ross Memorial Hospital Statement of Operations and Net Assets For the year ended March 31 2021 2020 Revenues $ 90,129,052 Ministry of Health Ministry of Health - Lost Revenue Funding (Note 2) Patient revenues Differential preferred accommodation Chronic care co-payment Other operating revenue Restricted program revenue Amortization of deferred contributions related to equipment $ 97,787,335 1,296,000 1,559,255 361,270 358,057 3,555,011 1,488,266 1,127,262 2,300,752 435,270 564,596 4,364,378 1,316,554 1,232,387 107,532,456 100,342,989 Expenses Salary, wages and other remuneration Employee benefits Supplies and other expenses Medical and surgical supplies Drugs Bad debts Restricted program expenses Equipment amortization 66,105,251 15, 177,995 14,163,809 4,278,443 2,124,264 143,239 1,522,072 2,265,701 61,677,674 14,263,583 13,557,488 4,446,661 2,142,350 196,736 1,323,008 2,172,388 105,780,774 99,779,888 The Ross Memorial Hospital Statement of Operations and Net Assets For the year ended March 31 2021 2020 Revenues $ 90,129,052 Ministry of Health Ministry of Health - Lost Revenue Funding (Note 2) Patient revenues Differential preferred accommodation Chronic care co-payment Other operating revenue Restricted program revenue Amortization of deferred contributions related to equipment $ 97,787,335 1,296,000 1,559,255 361,270 358,057 3,555,011 1,488,266 1,127,262 2,300,752 435,270 564,596 4,364,378 1,316,554 1,232,387 107,532,456 100,342,989 Expenses Salary, wages and other remuneration Employee benefits Supplies and other expenses Medical and surgical supplies Drugs Bad debts Restricted program expenses Equipment amortization 66,105,251 15, 177,995 14,163,809 4,278,443 2,124,264 143,239 1,522,072 2,265,701 61,677,674 14,263,583 13,557,488 4,446,661 2,142,350 196,736 1,323,008 2,172,388 105,780,774 99,779,888