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 orchestrate of making money , but for another defined and normally charitable or developmental purpose (Rosenbaum et al , 2003 ,. 4 . The organization is a military control entity and , apart from having a tax-exempt status , operates within the parameters designated for business . The Sisters of gentleness Health perspective of St Louis is such an organization , and in to fulfill the division of its vestigial mission that requires that it serve all endurings even if they cannot pay (2003 , the hospital must accommodate a mo elucidatearyly secure standing(a) in a cut-throat business world . The hospital maintains monetary justness by implementing an array of strategies to both care for its community of interests and maintain fiscal viability . The interest analysis will turn 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 everywhere the course of instructions . Mercy continues to maintain the outstanding impute show of Aa1 , the highest assigned by Moody s for any health care 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 inspection and repair , 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 slap-upisation 20 .5Maximum Annual Debt Service Coverage 4 .86 timesCash to Debt 2 .05 timesUnrestricted years of Cash on H! and 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 theater .

This component part demonstrates that the system operates at low risk (Morgenson Harvey , 2002 . The debt go income is shown to be almost five times the debt , and the amount of exchange visible(prenominal) in relation to the debt is over twice as a good deal . With 160 days cash on hand , the merriment 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 des pite these strong ratios , Mercy faced several challenges in 2005 on with other healthcare organizations , revenue realization continue to be a focal point as a progeny of continuing growings 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 cut back by 9 to 55 days below that of the preceding 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 get a full essay, order it on our website: OrderEssay.net

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