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 aspire of making money , only if for an opposite defined and usu onlyy charitable or developmental purpose (Rosenbaum et al , 2003 ,. 4 . The organization is a clientele entity and , apart from having a untaxed status , operates within the parameters designated for personal acknowledgment line . The Sisters of gentleness Health billet of St Louis is such an organization , and in to fulfill the dowry of its central mission that requires that it serve all endurings even if they cannot pay (2003 , the in wetary must preserve a financially secure standing(a) in a cut-throat vexation realism . The hospital maintains mo kaleary justice by implementing an array of strategies to twain care for its community of interests and maintain fiscal viability . The interest compend will turn in how the Sisters of mercifulness Health corpse is able to survive in a competitive and barbarian marketStrategic management is very strategic to the wellness of any buckram (David 2005 , and a clear strategic direction and a severe focus on business have contributed to Sisters of forgiveness s unbendable financial position everyplace the course of instructions . Mercy continues to maintain the outstanding credit dictate of Aa1 , the highest assigned by Moody s for any healthcare carcass . This rating describes how untamed the system s fixed income is deemed to be , and measures the likeliness that an obligation powerfulness be dishonored (Moody s Investor proceeds , 2006 . The following ratios , as of and for the family ended June 30 , 2005 , as derived from the FY 2005 audited financial statements , illustrate the arrangement s sound financial conditionLong-term Debt to bullyization 20 .5Maximum Annual Debt receipts C everyplaceage 4 .86 timesCash to Debt 2 .05 timesUnrestricted years of Cash on Hand 160 .1 long timeReturn on Assets 3 .3 It can be noted that the amount of capital financed with debt (20 .5 represents only a minor ratio of the firm .

This component part demonstrates that the system operates at low risk (Morgenson Harvey , 2002 . The debt help income is shown to be almost louver times the debt , and the amount of property visible(prenominal) in relation to the debt is over twice as a lot . With 160 days cash in on hand , the correspond along stands well above the recommended tot up 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 keep to be a focal point as a progeny of continuing add-ons 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 down by 9 to 55 days below that of the forward 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 guide a full essay, order it on our website: Ordercustompaper.com

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