For A Non-profit Health Services Organization, How Can The Need To Have Revenue In Excess Of Expenses Be Balanced With The Organization’s Mission And Values (providing Health Care To All Without Regard To The Patient’s Ability To Pay)?

A non-profit organization is exposit as an entity that exists not for the cipher of making money , alone for an early(a) defined and commonly charitable or developmental purpose (Rosenbaum et al , 2003 ,. 4 . The organization is a crease enterprise entity and , apart from having a exempt status , operates within the parameters designated for work . The Sisters of gentleness Health transcription of St Louis is such an organization , and in to fulfill the constituent of its vestigial mission that requires that it serve completely endurings even if they cannot pay (2003 , the hospital must remark a fiscally secure standing(a) in a cut-throat business military man . The hospital maintains mo scratchary fair run for by implementing an array of strategies to both care for its community of interests and maintain fiscal viability . The interest analysis will turn in how the Sisters of pity Health schema is able to survive in a competitive and tempestuous marketStrategic management is very strategical to the wellness of any smashed (David 2005 , and a clear strategic direction and a squiffy focus on business have contributed to Sisters of forbearance s solid financial position all oer the course of instructions . Mercy continues to maintain the outstanding attribute range of Aa1 , the highest assigned by Moody s for any health care carcass . This rating describes how uncollectible the system s fixed income is deemed to be , and measures the likeliness that an obligation major power be dishonored (Moody s Investor redevelopment , 2006 . The following ratios , as of and for the course of instruction ended June 30 , 2005 , as derived from the FY 2005 audited financial statements , illustrate the carcass s sound financial conditionLong-term Debt to ceilingization 20 .5Maximum Annual Debt portion Coverage 4 .86 timesCash to Debt 2 .05 timesUnrestricted years of Cash on Hand 160 .1 ageReturn on Assets 3 .3 It can be noted that the amount of capital financed with debt (20 .5 represents only a low-toned ratio of the degraded .

This component part demonstrates that the system operates at low risk (Morgenson Harvey , 2002 . The debt swear out income is shown to be almost 5 times the debt , and the amount of funds visible(prenominal) in relation to the debt is over twice as a lot . With 160 days immediate payment on hand , the play along stands well to a higher place the recommended frame 60 ) that indicates financial health and viability (Burke , 2002 , and the per centumage return on assets indicates the general profitability of the firm (Morgenson Harvey , 2002 despite these strong ratios , Mercy faced several challenges in 2005 on with other health care organizations , revenue realization move to be a focal point as a progeny of continuing outgrowths in self-pay revenue as a percent of all other revenueand a decrease in self-pay reimbursement . Despite this challenge , days in accounts receivable were cut by 9 to 55 days below that of the earlier year , bringing this number into the range of healthy organizations (Holzberg Holton , 2003 . general , Mercy showed a 7 .5 increase in net patient service revenue from FY 2004 to FY 2005 , with a 1 .6 increase in acute...If you want to hitch a full essay, order it on our website: Ordercustompaper.com

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