HCM640 Unit 2 Individual Project_Financial Statement_WatteT_2024

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Colorado Technical University *

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640

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Health Science

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May 14, 2024

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Sunrise Health System, Inc. Financial Statement Overview Tessa A. Watté HCM640 Unit 2 – Individual Project March 30, 2024
We routinely provide Sunrise Health System’s (SHS) financial statements to demonstrate and track our performance. These financial statements give vital details about SHS’s assets, liabilities, revenues, and expenses while illustrating the outcomes of operational decisions. We provide this data to decision-makers and our Board of Directors to track performance and choose the best plans, investments, and adjustments for SHS's ongoing expansion. This quarter's four quarterly reports are total operating revenue , patient revenue , Earnings before interest, taxes, depreciation, amortization identified here as (EBITDA) Margin , and compensation ratio . These financial statements are monitored and tracked in accordance with regulatory and compliance standards (Lane, 2021). (stcharleshealthsystem.org, 2023)
The Securities and Exchange Commission (SEC) is an independent government regulatory body with the power to monitor and enforce the format and content of financial statements. The Financial Accounting Standards Board, which in turn receives authority from the SEC to develop standards for financial statements, is tasked with creating industry-specific standards. The American Institute of Certified Public Accountants then establishes the standards for financial statements in the healthcare sector. Generally Accepted Accounting Principles (GAAP) are the rules established by these three organizations (Credentialing Resource Center, 2011). The total operating revenue looks at SHS’s operating expenses and represents the various expenses associated with operating a healthcare organization. Some of these costs can include labor costs such as salaries and benefits, contract labor costs, staff training and development programs, and those associated with medical supplies and equipment, utilities and facilities needs, as well as housekeeping and administrative costs. Ancillary costs such as diagnostic services, outpatient physical therapy services, nutrition services, and laboratory costs are all operational factors at SHS. We also account for inpatient and outpatient services costs to understand our financial picture and how to manage these costs effectively each year for SHS (Bai & Zare, 2020). The balance sheet and income statement below represent SHS's operating revenue over the last five years. The data for the balance sheet of the report was generated from reports about expenses, grants, assets, liabilities, and funds, and the data for the income statement provides an overview of the inpatient revenue generated, outpatient revenue generated, and the net patient revenue generated (American Hospital Directory Financial, n.d.).
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