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Patton-Fuller Community Hospital (PFCH) is a for-profit health care provider for the Northwest Valley area. The hospital opened in 1975 and owned by the physicians practicing at the facility, PFCH is dedicated to providing cutting edge services with high quality patient care. Currently, the 600 bed facility received a majority of its revenue (80%) through in-patient services including surgical care, nurse services, both medical and surgical as well as their Intensive Care Unit (ICU). The remaining 20% of revenue is gained through Emergency Department visits and additional out-patient care. The remainder of this paper will determine the variances between the 2008 and 2009 fiscal year in attempts to determine where major gains and losses can be seen within Patton-Fuller’s financial environment.
Variances between 2008 and 2009:
The first area analyzed for variances between the 2008 and 2009 operating years, was the assets of Patton-Fuller Community Hospital. With both the stock market and real estate industries reeling during this most recent economic downturn, the return on these types of investments is much lower in 2009 than in 2008. Cash and Cash equivalents saw a depreciation of 45% going from $41,000,000 in 2008 to $22,000,000 in 2009. Based on long-term investment options, future projections estimate that this loss will ultimately be negligible as the stock market begins to rebound. Additionally, with real estate prices plummeting, the value of the Patton-Fuller Community Hospital property also fell, reducing the overall market value roughly 34% from $41,000,000 to $27,000,000. Patient Accounts Receivable showed a significant increase from 2008 to 2009 due to a change over in contract with HMO insurance providers during the 2008 fiscal year. This change brought about a slow reimbursement process as the new steps were set-up to ensure

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