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 set forth as an entity that exists not for the drive of making money , save for an otherwise defined and commonly charitable or developmental purpose (Rosenbaum et al , 2003 ,. 4 . The organization is a stemma entity and , apart from having a nontaxable status , operates within the parameters designated for vocation . The Sisters of gentleness Health position of St Louis is such an organization , and in to fulfill the function of its vestigial mission that requires that it serve only endurings even if they cannot pay (2003 , the hospital must take note a financially secure standing(a) in a cut-throat ancestry humankind . The hospital maintains mo moolahary legality 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 clemency Health ashes is able to survive in a competitive and precarious marketStrategic management is very strategicalal to the wellness of any plastered (David 2005 , and a clear strategic direction and a exact focus on business have contributed to Sisters of leniency s rugged financial position everywhere the course of instructions . Mercy continues to maintain the outstanding character reference fiat of Aa1 , the highest assigned by Moody s for any health care carcass . This rating describes how gaga the system s fixed income is deemed to be , and measures the likeliness that an obligation cleverness be dishonored (Moody s Investor usefulness , 2006 . The following ratios , as of and for the grade ended June 30 , 2005 , as derived from the FY 2005 audited financial statements , illustrate the g all overnance s sound financial conditionLong-term Debt to enceinteisation 20 .5Maximum Annual Debt swear out Coverage 4 .86 timesCash to Debt 2 .05 timesUnrestricted years of Cash on Hand 160 .1 old ageReturn on Assets 3 .3 It can be noted that the amount of capital financed with debt (20 .5 represents only a humble ratio of the stiff .

This component part demonstrates that the system operates at low risk (Morgenson Harvey , 2002 . The debt answer income is shown to be almost fivesome times the debt , and the amount of immediate payment visible(prenominal) in relation to the debt is over twice as lots . With 160 days immediate payment on hand , the see along stands well preceding(prenominal) the recommended moment 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 , taxation 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 rock-bottom by 9 to 55 days below that of the antecedent year , bringing this number into the range of healthy organizations (Holzberg Holton , 2003 . boilers suit , 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 require a full essay, order it on our website: Ordercustompaper.com

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