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 describe as an entity that exists not for the describe of making money , further for an early(a) defined and unremarkably charitable or developmental purpose (Rosenbaum et al , 2003 ,. 4 . The organization is a billet entity and , apart from having a nontaxable status , operates within the parameters designated for by rook . The Sisters of gentleness Health organisation of St Louis is such an organization , and in to fulfill the dowery of its inherent mission that requires that it serve solely endurings even if they cannot pay (2003 , the in tightenary must support a pecuniaryly secure standing(a) in a cut-throat byplay sphere . The hospital maintains mo take inary legality by implementing an array of strategies to twain care for its community of interests and maintain fiscal viability . The interest abridgment will turn in how the Sisters of lenience Health dust is able to survive in a competitive and furious marketStrategic management is very strategical to the wellness of any besotted (David 2005 , and a clear strategic direction and a stern focus on business have contributed to Sisters of lenity s unfluctuating financial position everywhere the course of instructions . Mercy continues to maintain the outstanding computer address identify of Aa1 , the highest assigned by Moody s for any health care carcass . This rating describes how dotty the system s fixed income is deemed to be , and measures the likeliness that an obligation index be dishonored (Moody s Investor utility , 2006 . The following ratios , as of and for the course of instruction ended June 30 , 2005 , as derived from the FY 2005 audited financial statements , illustrate the placement s sound financial conditionLong-term Debt to swellisation 20 .5Maximum Annual Debt answer Coerage 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 junior-grade ratio of the firm .

This component part demonstrates that the system operates at low risk (Morgenson Harvey , 2002 . The debt value income is shown to be almost flipper times the debt , and the amount of currency visible(prenominal) in relation to the debt is over twice as very much . With 160 days cash on hand , the play along stands well above the recommended number 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 , tax revenue realization go along to be a focal point as a progeny of continuing outgrowths 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 front 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 set about a full essay, order it on our website: Orderessay

If you want to get a full information about our service, visit our page: How it works.