Financial analysis of a publicly traded health care company
Banner Healthcare Financial Analysis
This is a healthcare organization located in the United States and operates over 20 hospitals across the nation. Banner HealthCare is a large organization and is 2nd largest in Arizona after Walmart. It has a mission strategy that directs its strategies as well as objectives. Its mission statement is “We exist to make a difference in people’s lives through excellent patient care” (Banner Health, 2014). The main objective of Banner HealthCare is to provide health services to people.
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Write My Essay For MeTherefore, all its efforts should be geared towards achieving this fate. The health organization is nonprofit making. However, the organizations earnings are significantly high. For instance, in the year 2010, the company reported revenues worth $4.9 billion. The revenues in the year 2013 amounted to $5 billion while that in the year 2014 was $5.4 billion (EY, 2015). This article will analyze the financial reports of Banner Health for the year ended December 2014.
Financial Analysis for Banner health
In the year 2014, the organization made total revenue of $5,397,871 billion. This was an increase from the revenue of $5,097,004 billion it had generated in the year 2013. The total expenses for the year 2014 were $5,134,603 while that of the year 2013 was $4,842,904 (EY, 2015). This is an indication that the organization spent more money to generate income in the year 2014. The excess revenues for the year 2014 were less as compared to the totals in the year 2013. This was caused by the little money realized from investments as well as the increased level of expenses. Excess revenue attributable to Banner Health was $238,335 in the year 2014, down from $833,395 in the year 2013 (EY, 2015).
The total current assets for the year 2014 increased to $1,401,737 from $1,383,922 in the year 2013. The organization invested more on current assets in the year 2014 hence the increase. Net assets for the year also increased to $4,603,367. The general implication is that the organization grew in value in the year 2014 (EY, 2015). This is because the assets increased as well as the profitability. The cash flow for the year 2014 was also high. This means that the level of activities in the organization was high during the year. At the beginning of the year, Banner health had cash and cash equivalents totaling to $133,349. By 31st December year 2014, cash and cash equivalents were $67,318. At the beginning of 2013, the cash, and cash equivalents was equal to $54,734 (EY, 2015).
The reports that will be needed
There are some financial reports that should be presented by any organization according to International Reporting Standards (IRS). As per the IRS, Banner health needs to present the reports on income statements. It should also report on the financial position, the cash flow for the year as well as changes in assets during the year. The income statement report explains or gives information on the revenues that the organization generated.
This includes revenues from the various sources of income that the company has. The sources of income could be categorized based on their nature. For instance, there is income from operating activities, income from investments, income from sale or disposal of assets as well as other incomes as may be specified. The report should explain these incomes and give specific details where the need may arise (Gibson, 2011).
The income statement reports also give an explanation on the expenses incurred by the organization during the financial ye…………….
ESSAY 2 Health Care Analysis Essay
Health care reform has been a big topic since the Clinton administration when First Lady, Hillary Rodham Clinton, took it under her belt to devise a new system. Health care is the provision taken to preserve mental and physical health using prevention and treatment. Compared to other health care systems in the world, the United States is ranked 37th in terms of care, claims Michael Moore (2007). Ironically, our health care system spends more than any other nation on its patients, averaging nearly $8,000 per person (DiNitto, 2012). With soaring costs, it is no surprise that one in every seven Americans are uninsured (Kaiser, 2011). Even with these sorry figures, statistics show that 85% of Americans are satisfied with their health care …show more content…
Rather, our mentality reasons, “I paid for my child’s dentist visit, why can’t this child’s parents do the same?”
How must we protect our values without losing our culture? The preexisting satisfaction our nation currently has, allows our patient-focused health care system to prevail. Yet because of the trifling, non-satisfied citizens, the system must be adjusted. Using our current system, we must expand coverage by cutting expenses and seeking justice. We need to implement new laws that reform Medicaid, protect clients, and monitor prices. Expanding coverage will cost money simply because health care expenses are high.
Health care costs are high for multiple reasons. Inefficiency is happening because doctors lack resources that inform them about their patients’ past tests and prescriptions. This costs time and money. According to Furchtgott-Roth (2009), former chief economist at the U.S. Department of Labor, ten cents of every dollar paid to the doctor goes to his or her malpractice insurance. These rates are so high because there is no cap on the amount of money a doctor can be sued. Doctors even fear being sued for doing “too little” in the patients’ eyes. Because of this, doctors end up running unnecessary tests and prescribing unneeded drugs.
Medical News Today acerbates that health care is so expensive because we spend $147 billion per year on proble……………………………
ESSAY 3 Financial Characteristics of Health Care Essay HCA 340
Quality healthcare management includes the financial growth and viability of the healthcare organization. A healthcare organization can realize quality healthcare management only when it is fully staffed with medical and managerial professionals and is able to invest in the most advanced equipment”. (eHow.com). In 2009 it was reported that 46 million Americans were uninsured. In 2011 the uninsured has risen to 50.7 million people. This was due to people losing their jobs, the recession, companies downsizing, and some companies dropping employee health insurance. What can this really mean? With just one person being uninsured in the United …show more content…
The average cost to insure a family of four is already about $14,000”. (USA Today.com)
Where do human resources fit into this health Care system? “The management of human resources is an important function within HSOs because the performance of HSOs is tied directly to the motivation, commitment, knowledge, and skills of clinical, administrative, and support staff. Human resources actions of HSOs are undertaken for both strategic and administrative purposes. A variety of human resources activities are included within the human resources area, and these activities typically fall within the domains of workforce planning/recruitment and employee retention. While human resources serves as a support function for line managers within HSOs, line managers and staff managers carry out human resources management roles as well, because they are involved in hiring, supervising, evaluating, promoting, and terminating staff. Therefore, human resources staff and other manager’s work closely to ensure, that HSOs perform well. The contribution of the human resources management function is increasingly being evaluated by senior management, similar to other organizational functions, to determine the net contribution of human resources staff to organizational success. It is likely that management of human resources will increase in importance in the future, as HSOs face heightened external and internal pressures to recruit and retain comm…..……..
