Charitable Contributions and Debt: A Comparison of St. Jude Childrens Research Hospital/ALSAC and Universal Health Services located in Ch. 5 of Mastery of the Financial Accounting Research System (FARS) Through Cases
Write a 1,050- to 1,400-word response in which you address the following questions from the case study:
Requirement B: Revenue Mix (Strategy-Related Considerations)
The 10-K filing of Universal Health Services, Inc. describes the mix of revenue sources, as depicted in Table 5.3-3.
1. How does this revenue mix compare with the revenue blend of the not-for-profit entity, St. Jude Children's Research Hospital (ALSAC)? Access the latest SEC filing and compare the reported revenue mix; has it changed?
2. What does that imply as to the strategies of investor-owned hospitals in managing risk and ensuring adequate capital relative to not-for-profit entities? An opportunity exists to explore the greater social and political questions that are frequently debated about the compatibility of profit-oriented entities and quality of health care, relative to not-for-profit entities. As background, identify what the latest SEC filings report concerning charity care.
3. How would your answers to Requirements B differ if the government owned and operated the hospital?