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Health Care Finance: Financial Statement Analysis

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Submitted By fowlerkelli
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The Northeast Health Council, INC was established in 1993 to meet the primary healthcare needs of the residents of the Northeast through a not-for-profit community-responsible approach. A nonprofit analysis helps nonprofit executives and board members understand their organization’s underlying fiscal health and readiness for change and growth. The analysis is a critical tool for Northeast Health Council planning for program expansion, organizational restructuring and/or realignment, financial and fundraising challenges, new executive and board leadership, a new capital project, or acquisition or merger with another nonprofit organization (such as the local health clinic). The Northeast Health Council’s analysis helps its executives and board members to understand the underlying financial trends and characteristics of their organization, including revenue composition and growth, expense composition and trends, balance sheet composition, and key ratios. It helps to assess the alignment of the organization’s current financial structure with change; predict the impact of proposed changes on the organization’s future growth, sustainability, and survival; Use financial planning and management tools, such as annual/monthly cash flow projections, budgets of revenue and expenditures versus actual reports, to inform strategic decision making; establish benchmarks for program productivity, financial performance and organization-wide fiscal health.
Additionally, the analysis is a powerful tool for making a sound business- based financial case to current and prospective funders as well as other stakeholders.
Based on my findings from the past 3 years of revenue and expenses breakdown, the amount of revenue received exceeds the total liabilities and deficits by nearly two times the amount and is steadily decreased over the years. Greater than 33.5% of the organizations

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