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 describe of making money , but for an separate defined and usu wholey charitable or developmental purpose (Rosenbaum et al , 2003 ,. 4 . The organization is a line of caper entity and , apart from having a exempt status , operates within the parameters designated for business enterprise . The Sisters of gentleness Health spatial relation of St Louis is such an organization , and in to fulfill the fraction of its vestigial mission that requires that it serve all endurings even if they cannot pay (2003 , the in theatreary must husband a fiscally secure standing(a) in a cut-throat business manhood . The hospital maintains mo last-placeary fair crop by implementing an array of strategies to two care for its community of interests and maintain fiscal viability . The interest epitome will turn in how the Sisters of clemency Health administration is able to survive in a competitive and raving mad marketStrategic management is very strategicalal to the wellness of any unwavering (David 2005 , and a clear strategic direction and a miserly focus on business have contributed to Sisters of gentleness s well-knit financial position all over the course of instructions . Mercy continues to maintain the outstanding accredit revisal of Aa1 , the highest assigned by Moody s for any healthcare carcass . This rating describes how barbaric the system s fixed income is deemed to be , and measures the likeliness that an obligation mogul be dishonored (Moody s Investor inspection and repair , 2006 . The following ratios , as of and for the twelvemonth ended June 30 , 2005 , as derived from the FY 2005 audited financial statements , illustrate the outline s sound financial conditionLong-term Debt to greatisation 20 .5Maximum Annual Debt utility 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 thin ratio of the firm .

This component part demonstrates that the system operates at low risk (Morgenson Harvey , 2002 . The debt service income is shown to be almost v times the debt , and the amount of bullion visible(prenominal) in relation to the debt is over twice as a good deal . With 160 days silver on hand , the play along stands well in a higher place the recommended anatomy 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 healthcare organizations , gross realization proceed to be a focal point as a progeny of continuing emergences 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 bring down by 9 to 55 days below that of the antecedent year , bringing this number into the range of healthy 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 demoralize a full essay, order it on our website: Ordercustompaper.com

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