DISCUSSION QUESTIONS Financial Statements 1. Create an operating statement for a not-for-profit hospital given the fol- lowing list of its revenues and expenses. What would this statement be called for a for-profit hospital? $1,500,000 received as support services and contributions. $10,000,000 earned for patient services. $4,000,000 received from capitated contracts with health maintenance organizations (HMOs). $2,500,000 given in contractual discounts to Medicare and Medicaid patients. $1,000,000 in uncollected debts. $1,000,000 in depreciation and amortization of assets. $4,500,000 in salaries, insurance paid, and utilities. $500,000 in supplies. $2,000,000 in other expenses. 2. Where would cach of the following be listed on a balance sheet? a. Cash b. Parking garage c. Accounts payable d. Accounts receivable e. Bonds payable in four years f. Prepaid expenses Ratios 4. Hospital XYZ has annual revenues of $100,000,000 and its current accounts receivable is $7,500,000. What is its days in patient accounts receivable, and what does this figure mean? 5. Compute the ratios and metrics given the following information on Hos- pital XYZ: Current assets: $10,000,000 Total assets: $100,000,000 Current liabilities: $12,000,000 Total liabilities: $45,000,000 Annual revenue: $435,000,000 Total expenses: $425,000,000 Operating income: $10,000,000 Inventories: $5,000,000 Depreciation: $2,000,000 FINANCIAL ASPECTS - 59 a. Current ratio b. Working capital c. Days of working capital d. Quick ratio e. Average pay period f. Return on assets g. Return on equity 6. Given the following figures, compute the adjusted discharges for Hospital XYZ. Total inpatient discharges: 11,250 Gross outpatient revenue: $1,000,000 Inpatient gross revenue per discharge: $14,000 Time Value of Money Need Q1, 2, & 5 answered