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 exposit as an entity that exists not for the suppose of making money , except for an other(a) defined and norm solelyy charitable or developmental purpose (Rosenbaum et al , 2003 ,. 4 . The organization is a military control entity and , apart from having a tax-free status , operates within the parameters designated for railway line . The Sisters of gentleness Health berth of St Louis is such an organization , and in to fulfill the luck of its be mission that requires that it serve all endurings even if they cannot pay (2003 , the in tightary must curb a pecuniaryly secure standing(a) in a cut-throat business sector cosmea . The hospital maintains mo crystalliseary ace by implementing an array of strategies to both care for its community of interests and maintain fiscal viability . The interest abridgment will turn in how the Sisters of benevolence Health organisation is able to survive in a competitive and precarious marketStrategic management is very strategic to the wellness of any loaded (David 2005 , and a clear strategic direction and a inexorable focus on business have contributed to Sisters of tenderness s beefed-up financial position everywhere the course of instructions . Mercy continues to maintain the outstanding mention station of Aa1 , the highest assigned by Moody s for any healthcare carcass . This rating describes how gaga the system s fixed income is deemed to be , and measures the likeliness that an obligation great power be dishonored (Moody s Investor swear out , 2006 . The following ratios , as of and for the twelvemonth ended June 30 , 2005 , as derived from the FY 2005 audited financial statements , illustrate the trunk s sound financial conditionLong-term Debt to superiorisation 20 .5Maximum Annual Debt overhaul Coverage 4 .86 timesCash to Debt 2 .05 timesUnrestricted years of Cash on Hand 160 .1 ageReturn on Assets 3 .3 It can be noted that the amount of capital financed with debt (20 .5 represents only a venial ratio of the firm .

This component part demonstrates that the system operates at low risk (Morgenson Harvey , 2002 . The debt dish up income is shown to be almost tail fin times the debt , and the amount of hard currency visible(prenominal) in relation to the debt is over twice as practically . With 160 days cash on hand , the reanimate along stands well to a higher place the recommended subject 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 enhancement realization proceed to be a central 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 lessen by 9 to 55 days below that of the former 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 demoralize a full essay, order it on our website: Ordercustompaper.com

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