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 described as an entity that exists not for the institution of making money , but for another defined and commonly charitable or developmental purpose (Rosenbaum et al , 2003 ,. 4 . The organization is a business entity and , apart from having a nontaxable status , operates within the parameters designated for business . The Sisters of tenderness Health outline of St Louis is such an organization , and in to fulfill the component of its rudimentary mission that requires that it serve both uncomplainings even if they cannot pay (2003 , the in squiffyary must maintain a pecuniaryly secure stand up in a cut-throat business world . The hospital maintains financial integrity by implementing an array of strategies to both care for its conjunction and maintain fiscal viability . The spare-time activity analysis will send how the Sisters of Mercy Health System is able to survive in a competitive and risky marketStrategic management is very abundant to the wellness of any wet (David 2005 , and a clear strategical direction and a rigorous focus on operate have contributed to Sisters of Mercy s strong financial position all over the categorys . Mercy continues to maintain the outstanding credit order of Aa1 , the highest assigned by Moody s for any healthcare impudence . This rating describes how risky the system s fixed income is deemed to be , and measures the likeliness that an obligation might be dishonored (Moody s Investor Service , 2006 . The pursuance ratios , as of and for the year ended June 30 , 2005 , as derived from the FY 2005 audited financial statements , illustrate the System s sound financial conditionLong-term Debt to Capitalization 20 .5Maximum Annual Debt Service Coverage 4 .86 timesCash to Debt 2 .05 timesUnrestricted geezerhood of Ca sh on Hand 160 .1 daysReturn on Assets 3 .3 ! It can be noted that the amount of capital financed by and through debt (20 .5 represents only a small ratio of the true .

This broker demonstrates that the system operates at low risk (Morgenson Harvey , 2002 . The debt attend income is shown to be almost five times the debt , and the amount of cash getable in relation to the debt is over twice as much . With 160 days cash on overstep , the community stands well above the recommended number 60 ) that indicates financial health and viability (Burke , 2002 , and the portionage return on assets indicates the general profitability of the firm (Morgenson Harvey , 2002 disdain these strong ratios , Mercy faced several challenges in 200 5 along with other healthcare organizations , revenue realization proceed to be a focal point as a go out of continuing increases in self-pay revenue as a percent of all other revenueand a slack in self-pay reimbursement . Despite this challenge , days in accounts due were reduced by 9 to 55 days downstairs that of the previous year , bringing this number into the range of hygienic organizations (Holzberg Holton , 2003 . Overall , 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 get a blanket(a) essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: write my essay