Hcs 577 - Health Care Budget

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Depreciation expenses were an increase because of the rise in fixed assets in 2009 as compared to 2008. The increased in bad debt expenses was because of the increase in accounts receivable in 2009. The income profit also showed a decrease by 123% which maybe because of the increase in interest expenses in 2009. If the decrease were less in 2009 as compared to the previous year of 2008, the net loss may have been converted into net income. The decrease in net income has affected the return on assets ratio and return equity ratio in both years; they are around 0% in 2009 and -3% in 2008 for both ratios. The ratio has been shifted from negative to almost 0%, due to an increase in revenues and net income. The shareholders of PFCH believe that the hospital will continue its dramatic "turnaround", taking advantage of the stagnation in patient volume, price "deflation", the efficiency of new equipment and the improved arrangements with the managed care companies (University of Phoenix/ Patton - Fuller community hospital).

References:

Andersen, A. (2000, Jan.12). Best Practices: Developing Budgets. INC., (), . Retrieved from http://www.inc.com/articles/2000/01/16379.html

University of Phoenix/ Patton - Fuller Community Hospital . (). Patton - Fuller Community Hospital Operating Budget 2009 . Retrieved from university of Phoenix/ Patton - Fuller Community Hospital , HCS 577 Financila Management in health care website.

University of phoenix/ Patto Fuller Community hospital. (). 2010 Operating Budget Assumptions . Retrieved from university of phoenix/ Patto Fuller Community hospital, HCS 577 Financial Management of health care website.

University of Phoenix/. (). Read Me First HCS/577. Retrieved from University of Phoenix/, HCS577 website.