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 gauge of making money , but for another defined and usually charitable or developmental purpose (Rosenbaum et al , 2003 ,. 4 . The organization is a melody entity and , apart from having a nontaxable status , operates within the parameters designated for business . The Sisters of gentleness Health lieu of St Louis is such an organization , and in to fulfill the constituent of its cardinal mission that requires that it serve all endurings even if they cannot pay (2003 , the hospital must sustain a fiscally secure standing(a) in a cut-throat business world . The hospital maintains mo dismissary honor by implementing an array of strategies to both care for its community of interests and maintain fiscal viability . The interest analysis will t urn in how the Sisters of Mercy Health System is able to survive in a competitive and risky marketStrategic management is very strategical to the wellness of any steadfast (David 2005 , and a clear strategic direction and a rigorous focus on business have contributed to Sisters of Mercy s strong financial position everyplace the course of instructions . Mercy continues to maintain the outstanding credit entry fix of Aa1 , the highest assigned by Moody s for any healthcare carcass . 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 run , 2006 . The following 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 groovyization 20 .5Maximum Annual Debt Service Coverage 4 .86 timesCash to Debt 2 .05 timesUnrestricted years of Cash on Han d 160 .1 daysReturn on Assets 3 .3 It can be! noted that the amount of capital financed with debt (20 .5 represents only a small ratio of the whole .

This component part demonstrates that the system operates at low risk (Morgenson Harvey , 2002 . The debt run income is shown to be almost five times the debt , and the amount of silver visible(prenominal) in relation to the debt is over twice as a great deal . With 160 days cash on hand , the foregather along stands well above the recommended number 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 , revenue realization go along to be a focal point as a progeny of continuing amplifications 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 minify by 9 to 55 days below that of the introductory 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 get a full essay, order it on our website: OrderEssay.net

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