The Johns Hopkins Hospital long history has likewise possessed the capacity to give broad budgetary data that has been given consistently in monetary reports. These reports have given significant data to speculators investigating the organization of its current and past financial responsibility to its community and internal stakeholders. Balance Sheet Case Study of John Hopkins Hospital The Johns Hopkins Hospital officially opened May 7, 1889. It was the first teaching hospital, designed to unite functions of patient care with education and research. Today the hospital has evolved into one of the largest teaching hospitals in the country (The Alan Mason Chesney, 2015). The Johns Hopkins Hospital long history has also been able to provide …show more content…
Since companies are often unable to sell their fixed assets within any reasonable amount of time they are carried on the balance sheet at cost regardless of their actual value. As a result, it is possible for companies to grossly inflate this number, leaving investors with questionable and hard-to-compare asset figures (Investopedia.com, 2003). The total asset for Johns Hopkins Hospital is $ 2,769,848 for the reporting date of June 30, 2012. Since the balance sheet has to balance this amount will also appear in the liabilities section of the balance sheet. Liabilities are debts owed that are grouped into two different categories, current and noncurrent. Current liabilities are to be paid within the business cycle such as accounts payable, while long-term liabilities have more time to be paid off that surpasses the twelve-month cycle. These accounts are most often paid after current assets have liquidated to cash to pay outstanding liabilities that are coming due. The balance sheet for Johns Hopkins Hospital does balance since both assets and liabilities total …show more content…
The current ratio measures the hospitals ability to meet short-term obligations with short-term assets. A social enterprise needs to ensure that it can pay its salaries, bills and expenses on time. A ratio less that 1 may indicate liquidity issues (Demonstrating Value, 2015). Current Ratio (Current Assets/ Current Liabilities) 0.81 = 407,053/499,783 Ratio 0.81:1 According to National Healthcare Historical Current Ratio Data, on June 30, 2012 the national average was 1.812. Based on the national average Johns Hopkins was barely meeting their financial responsibilities in 2012. The health of this company needs further investing; the next step will be to analyze the operating statement also known as the income statement. The information provided in the Operating Statement of Johns Hopkins Hospital shows the operating revenue (the daily business that generates income) was 1,791,899 and total-operating expenses including such items as salaries, supplies, provision for bad debt etc. was 1,706,672. By subtracting operating revenue from operating expenses the gross profit can be calculated, which totaled
The expense per discharge and the expense per adjusted discharge are both higher than average. The positive trend in outpatient profitability has been in an increase in profit per visit and net revenue per visit. Outpatients profit has influenced the hospitals in expanding their outpatients and shrinking its inpatient services. Inpatient charges increased the net revenue per discharge shown in the quartile information. The Riverview Community Hospital is known to provide high-quality services to its patients. It provides an adequate amount of revenue to cover its expenses. Moreover, it allows provides charity care without affecting its stability. Also, the Riverview community hospital has joint reimbursement from the government. The length of hospital stays has been below average with allowing doctors and nurses with effective resources. The average length is below average it is quite beneficial to both patients and the hospital because it is less costly, and opens up resources for other nurses and doctors not only does it help out the workers, but allows the patient to be taken care of with accessible facilities. Therefore, it
These achievements have been achieved due to strategic management by the management. The management is more related to that of any other firm or organization with emphasis being in the strengths, weaknesses, threats and opportunities. The strengths are the propelling force that help the institutions under Johns Hopkins to achieve exemplary success in the fields of inpatient care, educational research and innovation. These strengths include: quality infrastructure, latest medical equipment, large financial resources and reserves to cater for the unseen, high trained medical doctors, nurses and technicians, large floor space that enables them to host extensive research
First, let us analyze General Practice Affiliates’ current financial position. The income and expenses report shows a net revenue of $230,250. The net revenue is obtained after expenses, including taxes, of the company have been subtracted from revenue (Paterson, 2014, p. 124). The balance sheet shows a $306,180 in retained earnings. Retained earnings represent stakeholders’ equity (Paterson, 2014, p. 128). Retained earnings are usually invested back in the form of inventory or debt payments (Albrecht, Stice, Stice , & Swain, 2008). General Practice Affiliates’ cash flow analysis shows that the practice invests in new equipment. However, General Practice Affiliates mainly used cash during 2012. The main source of cash from operations came from depreciation expense, which is not a reliable source of funding (Paterson, 2014, p. 130). Accounts receivable increased by $50,000, while accounts payable only increased by $10,000. In addition, cash flow analysis shows a balance sheet data that is affected by future transactions (Paterson, 2014, p. 128). General Practice Affiliates choose to stretch the time to pay suppliers instead of paying its bills. ...
John Hopkins Hospital was founded by John Hopkins a philanthropist and a Quaker by faith in 1867 and endowed in 1873. He dedicated his life and finances approximately $7,000,000 in cash to building a teaching hospital and a university named after him with designations of uniting functions of patient care with education and research. The John Hopkins hospital was officially opened on May 7, 1889. Before Mr. Hopkins died in 1973, he had committed himself to the principle of “united we stand and divided we fall” and selected board of trustees for the hospital and the university whom he entrusted with tasks and responsibilities to carry out his vision. On March 10, 1873, he put in black and white that the hospital must provide for “the indigent sick of the city of Baltimore without regard to sex, age, or color who may need surgical or medical treatment”. In his letter he also specified that the school of nursing and medicine must be established in conjunction with the hospital. Looking at it today, the John Hopkins hospital has evolved into one of the largest teaching hospital in the country. It includes more than 12 smaller hospitals and medical centers affiliated to the main hospital in Baltimore 226 clinical services 977 licensed beds and 37 building in the State of Maryland. The John Hopkins Hospital and School of Medicine are the founding institutions of modern American Medicine and the birthplace of so many traditions of medicine including ward rounds, residency programs, and house staff. Many medical specialties including neuroscience by Harvey, cardiac surgery by Blalock, urology, endocrinology pediatrics, and child psychiatry by Kanner were founded at this hospital....
From the table 3 it is indicated that the current ratio of British Petroleum is higher than one both in the recent financial statements i.e. of 2014 and in the financial statement of previous year i.e. of 2013. In 2013 the current ratio of British Petroleum is 1.33 which indicates that the company has sufficient current assets to satisfy it short term liabilities. However, the current ratio in 2014 is 1.37 (BP Global, 2014) indicating increase and depicting that is in position to satisfy its short term debts. Thus this indicates the strength of company in satisfying its debt.
When analyzing financial statements some of the essential analysis ratios that are reviewed are the profitability of beds occupied and IP discharges within a cycle or operating/patient
Western State Hospital was established in 1871. The site was a military post (Fort Steilacoom)prior
The following document is the financial analysis with financial proposals to move Creekside Community Hospital into a strong economic future. To determine the best financial practices for Creekside Community Hospital, many factors were considered. This analysis starts with an evaluation of current capital structure and the organization’s liquidity and profitability ratios while offering recommendations to improve Creekside Community Hospital’s current financial standing.
For the month of October 2015, The New London Hospital Association, Inc. generated a consolidated gain from operations of $71k compared to a budgeted gain of $373k. That brought the YTD operating gain to $368k versus a budgeted YTD gain of $250k. Monthly Non-Operating Revenue was $44k compared to a budget of $83k. YTD Non-Operating Revenue was $229k compared to a budget of $334k.
The Johns Hopkins Health System Corporation provides health care services. It operates acute care hospitals, community teaching hospital, geriatric care center, home care center, and outpatient care center in Maryland. The company provides services in the areas of ear, nose, and throat; eyes; gynecology; cancer treatment; children’s care; and urology. The company was founded in 1986 and is based in Baltimore, Maryland (Bloomberg Business, 2015; Johns Hopkins Medicine, 2015). For more than a century, Johns Hopkins Health System Corporation has been recognized as a leader in patient care, medical research and teaching. Today, Johns Hopkins Medicine is known for its excellent faculty, nurses and staff specializing in every aspect of medical care.
In 1974 a group of physicians from the Columbia Orthopaedic Group joined with other physicians, from around Columbia to build Columbia Regional Hospital. For the next 36 years the hospital serviced the community, patients and their families. In 2010, Columbia Regional Hospital changed their name to Women’s and Children’s hospital, and since then have commented to serving women, children, and their families.
Despite of the fact that hospitals are normally categorized as non-profit organizations in accounting terminology, it is still important to have a check and balance system through which the difference in expenses and revenues can be effectively monitored. It is a general assessment that the hospital will move for less expensive and cheaper cost drivers and motivators in order to bring down the level of surging expens...
The balance sheet, as provided by McLaughlin (McLaughlin, 2009, p. 125), gives a number of assets that have the potential to be liquefied in an effort to maintain organizational stability. Assets provided by the fictitious organization include cash, savings, pledges, investments, and land and equipment. Cash is usually considered to be the most liquid when meeting debt obligations,
This ratio indicates a Non-profit's relative liquidity or ability to cover its debt, serving as a basic indicator of financial strength because it measures cash availability and liquid assets to meet financial obligations (CBIZ, 2015).
The use of budgets in the healthcare sector have several benefits and serve several purposes. For example, budgets set the performance agenda for the year ahead through estimation of revenues and expenditures (Byrne, 2007). Additionally, a budget allows a health care organization (HCO) to provide a forecast of income and expenditure or profitability, can be used as a tool for decision making, and as a means to monitor business performance (Leo Issac, n.d.). Forecasting allows HCOs to predict whether a profit will be made or not (Leo Issac, n.d.). Moreover, budgets aid in decision making or determining if a potential expenditure has been planned for or not (Leo Issac, n.d.). Lastly, budgeting allows HCOs to