FARS Case
2 /2 7/2 017 M aste ry o f th e F in ancia l A ccountin g R esearc h S yste m ( F A R S) T hro ugh C ases h ttp s://p hoenix .v ita ls ourc e.c om /# /b ooks/9 780470429396/c fi/1 2!/4 /2 /3 4/4 @ 0:1 00 1 /8 P R IN TED B Y: r o se a n gelic a 13@ em ail.p hoen ix .e d u. P rin tin g i s f o r p erso n al, p riv ate u se o n ly . N o p art o f t h is b ook m ay b e r e p ro d uced o r t r a n sm it te d w it h ou t p ublis h er's p rio r p erm is sio n . V io la to rs w ill b e p ro se cu te d . K ey T erm s a n d G lo ssa ry c o nsis te n cy c o m para b ility a cro ss t im e o f g en era lly a ccep te d a cco untin g p rin cip le s’ a p plic atio n d ir e ct c o sts t h ose c o sts t h at f lu ctu ate d ir e ctly w ith t h e p ro duct, s u ch a s r a w m ate ria ls a n d d ir e ct l a b or u se d t o c re ate p hysic al p ro ducts r e cla ssif ic atio ns c h an ges i n t h e a cco unt u se d t o r e co rd o r p re se n t a t r a n sa ctio n, e v en t, o r e stim ate F urth er R ea d in gs A le x an der, D av id . 1 999. “ A b en ch m ark f o r t h e a d eq uacy o f p ublis h ed f in an cia l s ta te m en ts .” A cco untin g a nd B usin ess R ese a rc h ( 2 9, 3 ), p p. 2 39–253. B ell, T im oth y, F ra n k M arrs , I ra S olo m on, a n d H ow ard T hom as. 1 997. A uditin g O rg aniz a tio ns T hro ugh a S tr a te g ic S yste m s L en s. K PM G P eat M arw ic k L LP. C ato , S id . 1 988. “ M an ag er’s J o urn al: W hen p re p arin g a n nual r e p orts , l e ss i s d efin ite ly n ot m ore .” W all S tr e et J o urn al ( A ugust 2 2), 1 988 W LW SJ 4 54421. D oyle , R obert K ., a n d F . G ord on S poor. 1 999. “ H ow t o s ta rt a n i n vestm en t a d vis o ry p ra ctic e.” J o urn al o f A cco unta ncy ( 1 87, 1 , J a n uary ). G olu b, S te v en J ., a n d R obert J . K uep pers . 1 983. S um mary R ep ortin g o f F in ancia l I n fo rm atio n: M ovin g T o w ard M ore R ea dable A nnual R ep orts ( A R ese arc h S tu dy P re p are d f o r F in an cia l E xecu tiv es R ese arc h F oundatio n). J a co bs, S an fo rd L . 1 988. “ A nnual r e p orts i n s h ort f o rm f a il t o c atc h o n.” W all S tr e et J o urn al ( A pril 1 4), 1 988 W LW SJ 4 68976.
L ittle to n, A . C . 1 953. S tr u ctu re o f A cco untin g T heo ry . A m eric an A cco untin g A sso cia tio n M onogra p h N o. 5 . S ara so ta , F L : A m eric an A cco untin g A sso cia tio n, p p. 3 9–40, 4 4.
P ric e, R en eé, a n d W an da A . W alla ce. 2 001. S hades o f M ate ria lity ( T he C an ad ia n C ertif ie d G en era l A cco unta n ts ’ R ese arc h F oundatio n, R ese arc h M onogra p h 2 4 p ublis h ed o n C D R O M ).
P ric e, R en eé, a n d W an da A . W alla ce. 1 996–1997. “ T oo m an y s h ad es o f m ate ria lity o nly s e rv e t o c o nfu se .” A udit & A cco untin g F oru m . A cco untin g T o day ( D ecem ber 1 6–Ja n uary 5 ), p . 6 1. S E C . 2 003. “ F re q uen tly a sk ed q uestio ns r e g ard in g t h e u se o f n onG AAP f in an cia l m easu re s.” P re p are d b y s ta ff m em bers i n t h e D iv is io n o f C orp ora tio n F in an ce. W ash in gto n, D C: U .S . S E C , ( J u ne 1 3).
S E C . 2 003. S A B N o. 1 03, C odif ic atio n o f S ta ff A cco untin g B ulle tin s ( a s p oste d M ay ) — T opic 1 : F in an cia l S ta te m en ts ; T opic 2 : B usin ess C om bin atio ns; T opic 3 : S en io r S ecu ritie s; T opic 4 : E quity A cco unts ; T opic 5 : 2 /2 7/2 017 M aste ry o f th e F in ancia l A ccountin g R esearc h S yste m ( F A R S) T hro ugh C ases h ttp s://p hoenix .v ita ls ourc e.c om /# /b ooks/9 780470429396/c fi/1 2!/4 /2 /3 4/4 @ 0:1 00 2 /8 P R IN TED B Y: r o se a n gelic a 13@ em ail.p hoen ix .e d u. P rin tin g i s f o r p erso n al, p riv ate u se o n ly . N o p art o f t h is b ook m ay b e r e p ro d uced o r t r a n sm it te d w it h ou t p ublis h er's p rio r p erm is sio n . V io la to rs w ill b e p ro se cu te d . M is c ella n eo us A cco untin g; T opic 6 : I n te rp re ta tio ns o f A cco untin g S erie s R ele ase s a n d F in an cia l R ep ortin g R ele ase s; T opic 7 : R eal E sta te C om pan ie s; T opic 8 : R eta il C om pan ie s; T opic 9 : F in an ce C om pan ie s; T opic 1 0:
U tility C om pan ie s; T opic 1 1 : M is c ella n eo us D is c lo su re ; T opic 1 2: O il a n d G as P ro ducin g A ctiv itie s; T opic 1 3:
R ev en ue R eco gnitio n.
S E C . 1 995. W L 3 85858 ( S E C R ele ase N o.) 5 9 S E C D ock et 1 556, R ele ase N o. 3 3–7183, R ele ase N o. 3 43 5893, R ele ase N o. I C 2 1, 1 66. “ U se o f a b bre v ia te d f in an cia l s ta te m en ts i n d ocu m en ts d eliv ere d t o i n vesto rs p urs u an t t o t h e S ecu ritie s A ct o f 1 933 a n d S ecu ritie s E xch an ge A ct o f 1 934.” F ile N o. S 71 39 5, R IN 3 235A G49, ( J u ne 2 7).
V is v an ath an , G nan ak um ar. 2 006. “ A n e m pir ic al i n vestig atio n o f ‘ c lo se n ess t o c ash ’ a s a d ete rm in an t o f e arn in gs r e sp onse c o eff ic ie n ts .” A cco untin g a nd B usin ess R ese a rc h ( 3 6, 2 ), p p. 1 09–120. W alla ce, W an da A . 2 003. “ A naly zin g n onG AAP l in e i te m s i n i n co m e s ta te m en ts .” C PA J o urn al ( L X XIII, 6 , J u ne), p p. 3 8–47.
M ak e t h e s c h em e o f a cco u nts c o n fo rm w it h t h e o p era tin g o rg an iz a tio n o f t h e e n te rp ris e , b eca u se a cco u ntin g d ata c a n t h us b e m ad e t o r e v ea l t h e r e su lt s o f m an agem en t’s u se o f i t s o p portu nit ie s. — A.C . L it tle to n [ S ourc e: S tr u ctu re o f A cco untin g T heo ry , A m eric a n A cco untin g A sso cia tio n M onogra ph N o. 5 ( S ara so ta , F L: A m eric a n A cco untin g A sso cia tio n, 1 966), p . 1 91] C ASE 3 : C harit a b le C on tr ib utio n s a n d D eb t: A C om paris o n o f S t. J u de C hild re n ’s R ese a rc h H osp it a l/A LSA C a n d U niv ersa l H ea lt h S erv ic es C ASE T O PIC S O UTLIN E 1 . S t. J u de C hild re n ’s R ese arc h H osp ita l/A LSA C A . P rim ary O bje ctiv e B . S ourc es o f C ap ita l C . R ep ortin g P ra ctic es 2 . U niv ers a l H ealth S erv ic es A . I n vesto r O wned H osp ita l B . D eb t I n clu din g L ease s 3 . C om paris o n H osp ita ls a re a n i n dustr y i n w hic h b oth n ot fo r p ro fits a n d i n vesto r o w ned f a cilitie s o pera te . T he s o urc es o f c ap ita l a v aila b le t o t h e n ot fo r p ro fits i n clu de c h arita b le c o ntr ib utio ns a n d d eb t o ff e rin gs— unle ss t h ey a re g overn m en ta l, i n w hic h c ase , h ig her t a x es a re a ls o a n a lte rn ativ e. D eb t a v aila b ility i s a lw ay s, i n p art, a f u nctio n o f p erfo rm an ce, a n d j u st a s f a ilu re s h av e a ris e n i n b oth s e cto rs , a b out o neth ir d o f t h e i n vesto r o w ned h osp ita ls h av e b een d esc rib ed a s l o sin g m oney. O f i n te re st i s h ow c an o ne e ff e ctiv ely e v alu ate s u ch a n i n dustr y , w ith t h is t y pe o f d iv ers ity i n o rg an iz atio nal f o rm s a n d c ap ita l a v aila b ility ? A n ecessa ry p re re q uis ite t o s u ch a n e v alu atio n i s t o h av e a f ir m u nders ta n din g o f h ow c h arita b le c o ntr ib utio ns a re p re se n te d .
S t. J u de C hild re n ’s R ese arc h H osp ita l/A LSA C h as t h e m is sio n o f f in din g c u re s f o r c h ild re n w ith c ata str o phic d is e ase s t h ro ugh r e se arc h a n d t r e atm en t. F or t h e f is c al y ear 1 999, t h is e n tity r e p orte d t o ta l a sse ts o f $ 221,6 64,2 32 a n d i n co m e o f $ 177,0 71,8 90. A W eb s ite a t h ttp ://w ww.s tju de.o rg , a s w ell a s G uid esta r’s l is tin g, r e fe re n ces a F orm 9 90 ( R etu rn o f O rg an iz atio n E xem pt f ro m I n co m e T ax ) f ilin g, a v aila b ility o f a u dite d f in an cia l s ta te m en ts u pon r e q uest, a n d i n fo rm atio n t h at t h e h osp ita l h as 2 ,1 00 e m plo yees a n d 3 50 v olu nte ers . F ounded i n 1 962, t h e o rg an iz atio n s e ek s f u nds f ro m c o ntr ib utio ns a n d g ra n ts f o r u nre str ic te d o pera tin g e x pen se s, s p ecif ic p ro je cts , 2 /2 7/2 017 M aste ry o f th e F in ancia l A ccountin g R esearc h S yste m ( F A R S) T hro ugh C ases h ttp s://p hoenix .v ita ls ourc e.c om /# /b ooks/9 780470429396/c fi/1 2!/4 /2 /3 4/4 @ 0:1 00 3 /8 P R IN TED B Y: r o se a n gelic a 13@ em ail.p hoen ix .e d u. P rin tin g i s f o r p erso n al, p riv ate u se o n ly . N o p art o f t h is b ook m ay b e r e p ro d uced o r t r a n sm it te d w it h ou t p ublis h er's p rio r p erm is sio n . V io la to rs w ill b e p ro se cu te d . b uild in gs, a n d e n dow m en ts . M ore t h an 4 ,0 00 p atie n ts a re s e en a n nually , w ith a h osp ita l m ain ta in in g 5 6 b ed s. T he F orm 9 90, P art I II s ta te s t h at t h e h osp ita l p ro vid ed 1 5,2 31 i n patie n t d ay s o f c are d urin g t h e f is c al y ear a n d p atie n ts m ad e 4 0,9 82 c lin ic v is its . A LSA C i s t h e A m eric an L eb an ese S yria n A sso cia te d C haritie s, I n c., t h e f u ndra is in g a rm o f S t. J u de C hild re n ’s R ese arc h H osp ita l. I t r e p orte d 1 999 t o ta l a sse ts o f $ 1,0 07,6 99,3 20 a n d i n co m e o f $ 274,1 23,3 99. T his o rg an iz atio n r e p orts t h e n um ber o f e m plo yees a s 5 65 a n d t h e n um ber o f v olu nte ers a s 8 00,0 00. W ith i ts s o le f o cu s o n t h e h osp ita l, A LSA C’s s e lf d esc rip tio n e x pla in s t h at n o c h ild h as e v er b een t u rn ed a w ay d ue t o a n i n ab ility t o p ay f o r t r e atm en t a n d e x pla in s k ey a cco m plis h m en ts i n t h e r e se arc h a re a a ch ie v ed b y S t. J u de’s r e se arc h a n d t r e atm en t o f c h ild re n w ith c ata str o phic d is e ase s. W hat i s b orn e o ut b y t h e e x am ple o f S t.
J u de i s t h e f a ct t h at a r e v ie w o f t h e F orm 9 90 f ile d f o r t h e f is c al y ear e n din g 6 /3 0/9 9 i n dic ate s i n P art V I t h e n am es o f r e la te d o rg an iz atio ns: A LSA C a n d S t. J u de H osp ita l F oundatio n, b oth o f w hic h a re t a x e x em pt. T o g ain a s e n se o f c ap ita l a v aila b ility t o a n ot fo r p ro fit e n tity , a ff ilia te d e n titie s m ust b e c o nsid ere d . I n a d ditio n, t h e r o le o f v olu nte ers i s a s o urc e o f h um an c ap ita l n ot e ff e ctiv ely c ap tu re d w ith in t h e f ra m ew ork o f f in an cia l s ta te m en ts f o r n ot fo r p ro fits , a s r e fle cte d i n t h e F orm 9 90 f o r t h e f is c al y ear e n din g 6 /3 0/9 9 f o r A LSA C, w hic h s ta te s i n P art V I:
U npaid v olu nte ers h av e m ad e s ig nif ic an t c o ntr ib utio ns o f t h eir t im e, p rin cip ally i n f u ndra is in g a ctiv itie s. T he v alu e o f t h ese s e rv ic es i s n ot r e co gniz ed i n t h e f in an cia l s ta te m en ts s in ce i t i s n ot s u sc ep tib le t o a n o bje ctiv e m easu re m en t o r v alu atio n a n d b ecau se t h e a ctiv itie s o f t h ese v olu nte ers a re n ot s u bje ct t o t h e o pera tin g s u perv is io n a n d c o ntr o l p re se n t i n a n e m plo yer/e m plo yee r e la tio nsh ip .
H en ce, a s o ne e v alu ate s c ap ita l s o urc es a n d u se s b y n ot fo r p ro fits , c are i s n eed ed t o c o nsid er a ff ilia te d o rg an iz atio ns’ r o le , t o ta l c o ntr ib utio ns, a n d t h e e ff e ct o f v olu nte eris m o n t h e c o m para b ility b etw een n ot fo r p ro fit a n d i n vesto r o w ned o pera tio ns.
U niv ers a l H ealth S erv ic es, I n c. f ile d i ts 1 0K o n M arc h 2 8, 2 001, f o r t h e c ale n dar y ear 2 000, w hic h i n clu des c o m para tiv e i n fo rm atio n f o r 1 999. A naly sts h av e d esc rib ed t h e c o m pan y a s t h e m ost a g gre ssiv e c o m pan y i n t h e i n dustr y o ver t h e 1 999–2001 t im e f ra m e i n m ak in g a cq uis itio ns, p artic u la rly o f n ot fo r p ro fit o pera tio ns a n d i n vesto r o w ned o pera tio ns e x perie n cin g l o sse s. T he c o m pan y i s p ra is e d f o r i t h ig h o pera tin g l e v era g e, t h e r e la tiv ely s m all n um ber o f s h are h old ers r e la tiv e t o t h e m ag nitu de o f t o ta l r e v en ue, a n d s to ck p ric e a s a m ultip le o f e arn in gs. T he c o m pan y o pera te s 5 9 h osp ita ls a n d, a s o f 1 999, h ad a n a v era g e n um ber o f l ic en se d b ed s o f 4 ,8 06 a t a cu te c are h osp ita ls a n d 1 ,9 76 a t b eh av io ra l h ealth c en te rs , w ith p atie n t d ay s o f 9 63,8 42 a n d 4 44,6 32, r e sp ectiv ely . O f i n te re st i s a c o m men ta ry o n t h e c o m petitio n f o und i n t h e c o m pan y’s f ilin g:
C om petitio n I n a ll g eo gra p hic al a re as i n w hic h t h e C om pan y o pera te s, t h ere a re o th er h osp ita ls w hic h p ro vid e s e rv ic es c o m para b le t o t h ose o ff e re d b y t h e C om pan y’s h osp ita ls , s o m e o f w hic h a re o w ned b y g overn m en ta l a g en cie s a n d s u pporte d b y t a x r e v en ues, a n d o th ers o f w hic h a re o w ned b y n onpro fit c o rp ora tio ns a n d m ay b e s u pporte d t o a l a rg e e x te n t b y e n dow m en ts a n d c h arita b le c o ntr ib utio ns. S uch s u pport i s n ot a v aila b le t o t h e C om pan y’s h osp ita ls . C erta in o f t h e C om pan y’s c o m petito rs h av e g re ate r f in an cia l r e so urc es, a re b ette r e q uip ped a n d o ff e r a b ro ad er r a n ge o f s e rv ic es t h an t h e C om pan y. O utp atie n t t r e atm en t a n d d ia g nostic f a cilitie s, o utp atie n t s u rg ic al c en te rs a n d f re esta n din g a m bula to ry s u rg ic al c en te rs a ls o i m pact t h e h ealth care m ark etp la ce. I n r e cen t y ears , c o m petitio n a m ong h ealth care p ro vid ers f o r p atie n ts h as i n te n sif ie d a s h osp ita l o ccu pan cy r a te s i n t h e U nite d S ta te s h av e d eclin ed d ue t o , a m ong o th er t h in gs, r e g ula to ry a n d t e ch nolo gic al c h an ges, i n cre asin g u se o f m an ag ed c are p ay m en t s y ste m s, c o st c o nta in m en t p re ssu re s, a s h if t t o w ard o utp atie n t t r e atm en t a n d a n i n cre asin g s u pply o f p hysic ia n s. T he C om pan y’s s tr a te g ie s a re d esig ned , a n d m an ag em en t b elie v es t h at i ts f a cilitie s a re p ositio ned , t o b e c o m petitiv e u nder t h ese c h an gin g c ir c u m sta n ces. ( S ourc e: 1 0K f ile d 3 /2 8/2 001) F in an cia l i n fo rm atio n i s p ro vid ed i n T ab le s 5 .3 1 a n d 5 .3 2 f o r b oth t h e n ot fo r p ro fit a n d t h e i n vesto r o w ned h osp ita ls .
T ab le 5 .3 1 : F in an cia l C om paris o n s o f t h e N otfo rP ro fit E ntit ie s 2 /2 7/2 017 M aste ry o f th e F in ancia l A ccountin g R esearc h S yste m ( F A R S) T hro ugh C ases h ttp s://p hoenix .v ita ls ourc e.c om /# /b ooks/9 780470429396/c fi/1 2!/4 /2 /3 4/4 @ 0:1 00 4 /8 P R IN TED B Y: r o se a n gelic a 13@ em ail.p hoen ix .e d u. P rin tin g i s f o r p erso n al, p riv ate u se o n ly . N o p art o f t h is b ook m ay b e r e p ro d uced o r t r a n sm it te d w it h ou t p ublis h er's p rio r p erm is sio n . V io la to rs w ill b e p ro se cu te d . F is c a l Y ea r E nded 1 999 S t. J u de C hild re n ’s R ese a rc h H osp ita l F orm 9 90 * A m eric a n L eb an ese S yria n A sso cia te d C haritie s, I n c. ( A LSA C) F orm 9 90 * C ontr ib utio ns, g if ts , g ra n ts a n d s im ila r a m ounts r e ceiv ed : D ir e ct p ublic s u pport $ 91,9 78,4 26 $ 231,7 93,7 48 I n dir e ct p ublic s u pport 2 ,9 06,9 34 G overn m en t c o ntr ib utio ns ( g ra n ts ) 3 1,4 69,4 47 P ro gra m s e rv ic e r e v en ue, i n clu din g g overn m en t f e es a n d c o ntr a cts ( i.e ., h ealth i n su ra n ce r e v en ue) 4 6,0 34,7 10 A cco unts r e ceiv ab le 2 4,2 17,0 29 4 ,2 30,7 64 P le d ges r e ceiv ab le 2 3,6 04,7 48 A llo w an ce f o r d oubtf u l a cco unts 9 ,3 63,3 28 P ro gra m s e rv ic e e x pen se s 9 9,2 82,9 06 P ro gra m s e rv ic e e x pen se s: R ese arc h 8 7,2 25,8 30 P ro gra m s e rv ic e e x pen se s: E ducatio n a n d t r a in in g 5 ,4 71,1 86 P ro gra m s e rv ic e e x pen se s: M ed ic al S erv ic es 9 3,7 35,6 02 R eco ncilia tio n o f r e v en ue, g ain s, a n d o th er s u pport t o a u dite d n um bers : n et u nre aliz ed g ain s o n i n vestm en ts − 4,0 23,8 15 6 5,8 91,2 69 D efe rre d g ra n t r e v en ue 1 ,8 57,6 28 ( S ta te m en t 5 ) 2 /2 7/2 017 M aste ry o f th e F in ancia l A ccountin g R esearc h S yste m ( F A R S) T hro ugh C ases h ttp s://p hoenix .v ita ls ourc e.c om /# /b ooks/9 780470429396/c fi/1 2!/4 /2 /3 4/4 @ 0:1 00 5 /8 P R IN TED B Y: r o se a n gelic a 13@ em ail.p hoen ix .e d u. P rin tin g i s f o r p erso n al, p riv ate u se o n ly . N o p art o f t h is b ook m ay b e r e p ro d uced o r t r a n sm it te d w it h ou t p ublis h er's p rio r p erm is sio n . V io la to rs w ill b e p ro se cu te d . F is c a l Y ea r E nded 1 999 S t. J u de C hild re n ’s R ese a rc h H osp ita l F orm 9 90 * A m eric a n L eb an ese S yria n A sso cia te d C haritie s, I n c. ( A LSA C) F orm 9 90 * S upport f ro m A m eric an L eb an ese S yria n A sso cia te d C haritie s, I n c. 9 1,9 78,4 26 ( S ta te m en t 7 ) 9 1,9 78,4 26 ( p aid p er S ta te m en ts 4 , 6 ) E xclu ded c o ntr ib utio ns 2 ,7 46,2 95 ( S ta te m en t 1 ) E xcess o r ( d efic it) f o r t h e y ear − 10,9 33,1 91 1 20,5 21,9 82 N et a sse ts o r f u nd b ala n ces a t e n d o f y ear 1 99,7 07,4 40 9 94,5 01,9 10 T em pora rily r e str ic te d 1 5,7 15,8 90 P erm an en tly r e str ic te d 1 4,0 00,0 00 2 47,1 47,8 26 T ota l l ia b ilitie s 2 1,9 56,7 92 7 ,0 17,1 92 S ch ed ule o f d efe rre d d eb its & c re d its b y c o ntr a ct ( F A S 1 1 6 a d ju stm en t n ote d t o r e su lt i n t h is d efe rre d r e v en ue) 1 57,6 28 * T he G uid eS ta r.o rg W eb s ite ( h ttp ://w ww.g uid esta r.o rg ) p ro vid es a ccess t o F orm s 9 90 i n .P D F f o rm at. T ab le 5 .3 2 : U niv ersa l H ea lt h S erv ic es, I n c.’ s F in an cia l E xcerp ts * I n co m e S ta te m en ts ( in t h ou sa n ds) R ep orte d 1 999 C ale n dar Y ea r N et r e v en ues $ 2,0 42,3 80 O pera tin g c h arg es 1 ,9 13,3 46 2 /2 7/2 017 M aste ry o f th e F in ancia l A ccountin g R esearc h S yste m ( F A R S) T hro ugh C ases h ttp s://p hoenix .v ita ls ourc e.c om /# /b ooks/9 780470429396/c fi/1 2!/4 /2 /3 4/4 @ 0:1 00 6 /8 P R IN TED B Y: r o se a n gelic a 13@ em ail.p hoen ix .e d u. P rin tin g i s f o r p erso n al, p riv ate u se o n ly . N o p art o f t h is b ook m ay b e r e p ro d uced o r t r a n sm it te d w it h ou t p ublis h er's p rio r p erm is sio n . V io la to rs w ill b e p ro se cu te d . I n co m e S ta te m en ts ( in t h ou sa n ds) R ep orte d 1 999 C ale n dar Y ea r C om ponen ts : S ala rie s, w ag es, a n d b en efits 7 93,5 29 P ro vis io n f o r d oubtf u l a cco unts 1 66,1 39 L ease a n d r e n ta l e x pen se 4 9,0 29 I n te re st e x pen se , n et 2 6,8 72 N et i n co m e 7 7,7 75 T ota l a sse ts 1 ,4 97,9 73 T ota l l ia b ilitie s 8 56,3 62 T ota l r e ta in ed e arn in gs 4 82,9 60 C ap ita l s to ck 3 06 P aid in c ap ita l i n e x cess o f p ar 1 58,3 45 * T he 1 0K f ilin g a s o f 3 /2 8/2 001 a t E D GAR ( h ttp ://w ww.s e c.g ov/e d gar.s h tm l ) p ro vid es f in an cia l s ta te m en t i n fo rm atio n f o r 2 000 a n d 1 999.
R eq uir e m en t A : R eco rd in g R ev en ue 1 . W hat i s m ean t b y t h e r e fe re n ce i n T ab le 5 .3 1 t o a n F A S 1 1 6 a d ju stm en t? 2 . H ow a re c o ntr ib utio ns r e co rd ed ? I s t h ere a d is tin ctio n b etw een p le d ges r e ceiv ab le a n d a cco unts r e ceiv ab le ?
3 . A re t h ere c ir c u m sta n ces w hen f in an cia l s ta te m en ts c an q uan tif y v olu nte ers ’ s e rv ic es? 4 . C an f in an cia l s ta te m en t u se rs o f n ot fo r p ro fit h osp ita ls ’ f in an cia l s ta te m en ts e x pect t o b e f u lly i n fo rm ed r e g ard in g a ff ilia te d p artie s, s u ch a s t h e l in kag es b etw een S t. J u de C hild re n ’s R ese arc h H osp ita l, A LSA C, 2 /2 7/2 017 M aste ry o f th e F in ancia l A ccountin g R esearc h S yste m ( F A R S) T hro ugh C ases h ttp s://p hoenix .v ita ls ourc e.c om /# /b ooks/9 780470429396/c fi/1 2!/4 /2 /3 4/4 @ 0:1 00 7 /8 P R IN TED B Y: r o se a n gelic a 13@ em ail.p hoen ix .e d u. P rin tin g i s f o r p erso n al, p riv ate u se o n ly . N o p art o f t h is b ook m ay b e r e p ro d uced o r t r a n sm it te d w it h ou t p ublis h er's p rio r p erm is sio n . V io la to rs w ill b e p ro se cu te d . a n d t h e f o undatio n c ite d ? E xpla in . R eq uir e m en t B : R ev en ue M ix ( S tr a te g yR ela te d C on sid era tio n s) T he 1 0K f ilin g o f U niv ers a l H ealth S erv ic es, I n c. d esc rib es t h e m ix o f r e v en ue s o urc es, a s d ep ic te d i n T ab le 5 .3 3 .
T ab le 5 .3 3 : P atie n t R ev en ue M ix P E RCEN TA G E O F N ET P A TIE N T R EVEN UES 2 000 1 999 1 998 1 997 1 996 T hir d P arty P ay ors M ed ic are 3 2.3 % 3 3.5 % 3 4.3 % 3 5.6 % 3 5.6 % M ed ic aid 1 1 .5 % 1 2.6 % 1 1 .3 % 1 4.5 % 1 5.3 % M an ag ed C are ( H M Os a n d P PO s) 3 4.5 % 3 1.5 % 2 7.2 % 1 9.1 % N /A O th er S ourc es 2 1.7 % 2 2.4 % 2 7.2 % 3 0.8 % 4 9.1 % T ota l 1 00% 1 00% 1 00% 1 00% 1 00% N /A N ot a v aila b le ( S ourc e: 1 0K f ile d 3 /2 8/2 001) 1 . H ow d oes t h is r e v en ue m ix c o m pare w ith t h e r e v en ue b le n d o f t h e n ot fo r p ro fit e n tity , S t. J u de C hild re n ’s R ese arc h H osp ita l ( A LSA C)? A ccess t h e l a te st S E C f ilin g a n d c o m pare t h e r e p orte d r e v en ue m ix ; h as i t c h an ged ?
2 . W hat d oes t h at i m ply a s t o t h e s tr a te g ie s o f i n vesto r o w ned h osp ita ls i n m an ag in g r is k a n d e n su rin g a d eq uate c ap ita l r e la tiv e t o n ot fo r p ro fit e n titie s? A n o pportu nity e x is ts t o e x plo re t h e g re ate r s o cia l a n d p olitic al q uestio ns t h at a re f re q uen tly d eb ate d a b out t h e c o m patib ility o f p ro fit o rie n te d e n titie s a n d q uality o f h ealth c are , r e la tiv e t o n ot fo r p ro fit e n titie s. A s b ack gro und, i d en tif y w hat t h e l a te st S E C f ilin gs r e p ort c o ncern in g c h arity c are . D ir e cte d S elf S tu dy A ccess t h e 1 0Q ( fro m s e c.g ov ) f o r t h e q uarte rly p erio d e n ded J u ne 3 0, 2 006 a n d e x pla in h ow H urric an e K atr in a a ff e cte d U niv ers a l H ealth S erv ic es. T he s a m e 1 0Q r e p orts o n a f u ndin g c o m mitm en t t h e c o m pan y h as m ad e t o t h e a lm a m ate r o f t h e C hair m an o f t h e B oard o f D ir e cto rs a n d C hie f E xecu tiv e O ff ic er. D esc rib e t h e d is c lo su re 2 /2 7/2 017 M aste ry o f th e F in ancia l A ccountin g R esearc h S yste m ( F A R S) T hro ugh C ases h ttp s://p hoenix .v ita ls ourc e.c om /# /b ooks/9 780470429396/c fi/1 2!/4 /2 /3 4/4 @ 0:1 00 8 /8 P R IN TED B Y: r o se a n gelic a 13@ em ail.p hoen ix .e d u. P rin tin g i s f o r p erso n al, p riv ate u se o n ly . N o p art o f t h is b ook m ay b e r e p ro d uced o r t r a n sm it te d w it h ou t p ublis h er's p rio r p erm is sio n . V io la to rs w ill b e p ro se cu te d . a n d e x pla in w hy t h e e v en t i s a n “ O th er R ela te d P arty T ra n sa ctio n.” [ D ow nlo ad t h e 1 0Q i n t e x t f o rm at a n d a p ply t h e F in d c ap ab ility i n y our w ord p ro cesso r. A ls o a ccess F A RS a n d i d en tif y t h e g uid an ce r e le v an t t o e ach e v en t.]