This paper will cover an analysis of the financial statements of the fictitious Patton-Fuller Hospital for the years of 2008 and 2009. The analysis is bases on the Balance Sheets and the Statements of Revenue and Expenses for the above years along with the written annual report.

1. Running head: FINANCIAL DATA ANALYSIS 1
Financial Data Analysis
Debbie Fernando
HCS/577
March 25, 2013
Sharon Sanders

2. FINANCIAL DATA ANALYSIS 2
Financial Data Analysis
This paper will cover an analysis of the financial statements of Patton-Fuller Hospital for
the years of 2008 and 2009. The analysis is bases on the Balance Sheets and the Statements of
Revenue and Expenses for the above years along with the written annual report.
There were significant differences between the two years. According to the 2009 annual
report, a patient that has passed away in 2008 had left the hospital $1,000,000 in her will. This
was a huge help to the hospital as in took some hits in the year as well. The return on
investments was negatively affected by the drop in the stock market and real estate. On top of
this, the cost of supplies was massively underestimated by $1,000,000. They finally settled some
disputes with some managed care companies which resulted in a 9% increase in net patient
income over the previous years. This settlement did allow for slower payments, however, so the
Patient Accounts Receivable has risen. This should show up as a gain in 2010 when the
payments start to catch up with the 2009 charges. There was almost a $20,000 difference in
Patient Accounts Receivable with 2009 being the highest.
The drop in the stock market also caused the equipment vendors to drop their prices so
they were able to obtain some much needed new equipment at a discounted price. They had to
use cash and release some of their restricted assets, but the purchases were a good deal on
necessities.
Because of the rise in Accounts Receivable and the huge underestimate of needed
supplies, a business management committee was formed to oversee the efficiencies of the
business office.
They were able to keep the expenses down by showing only a 3% increase over the
previous year. The 9% increase in receivables and the 3% increase in expenses still prove a gain

3. FINANCIAL DATA ANALYSIS 3
of 6% profit. The CEO and the CFO received their bonuses, and the physicians were paid very
well for the hard work of all of the staff at their physician owned Patton – Fuller Hospital.
Balance Sheet
On the balance sheet, it shows around $20,000 less in cash in 2009 than in 2008.
However, due to the availability of the new equipment at a low price, cash was spent on this;
thus there is approximately $40,000 more in total assets in 2009 than 2008. Since the hospital
took out a long term loan, according to the annual report, which is showing up in the liabilities,
both as a portion of the long-term debt and the entire long-term debt. This loan makes the
liabilities in 2009 close to $250,000 more than in 2008. However, the loan was necessary due to
the stock market and other economic developments. There is a concern with the loan having an
adjustable interest rate rather than a fixed rate. The interest rate on the loan could have a positive
or negative affect on the balance sheet for 2010 and beyond.
Statement of Revenue and Expense
The Statement of Revenue and Expense shows that Net Patient Revenue was up in 2009
over $40,000 from 2008. There was only a $6,000 increase in salaries and benefits and a
depreciation of over $10,000 from 2008 to 2009. The total expense was increased just around
$25,000 more in 2009 from 2008.
Conclusion
The balance sheet and the statement of revenue and expense are both very beneficial and
necessary is the health care industry. Both statements show how much money is coming in and
where it is coming from. They both also show how much is being spent and what is being
purchased. In this case, it shows that the supplies’ being hugely underestimated was a major
concern. It could have been a disaster had it not been for the passing of one of their patients and

4. FINANCIAL DATA ANALYSIS 4
her leaving the hospital $1,000,000 in her will. The statements along with the annual report give
a very accurate account of the financial status of the hospital which appears to be in good
standing. The interest rate of the long-term loan, as will health care reform both have a major
effect on the finances of this hospital in the years to follow.

5. FINANCIAL DATA ANALYSIS 5
Reference
Patton-Fuller community hospital. (2013). Retrieved from
https://ecampus.phoenix.edu/secure/aapd/cist/vop/Healthcare/PFCH/docs/2009PFCHAnn
ualReport.pdf
Content
60 Percent
Points
Available
9
Points
Earned
X/9
Additional
Comments:
 Included a Balance Sheet in Microsoft® Excel® with
2008 financial data, 2009 financial data, amount of
change in dollars, and percent change
 Included a Statement of Revenue and Expenses in
Microsoft® Excel® with 2008 financial data, 2009
financial data, amount of change in dollars, and
percent change
 Identified changes greater than 5% between the
years
 Explained significant changes based on information
from the annual report
9
You included the
balance sheet and
Statement of
Revenues with your
analysis. Your
calculations were
correct. I can see that
you did do a thorough
job of examining
changes from year to
year and analyzing
this. You did a great
job of explaining
upcoming changes
necessary based upon
the annual report.
Organization/Development
20 Percent
Points
Available
3
Points
Earned
X/3
Additional
Comments:
 The analysis is 700 to 1,050 words in length.
 The introduction provides sufficient background
on the topic and previews major points.
 The conclusion is logical, flows, and reviews the
major points.
3
Mechanics
20 Percent
Points
Available
Points
Earned
Additional
Comments:

6. FINANCIAL DATA ANALYSIS 6
3 X/3
 The analysis—including the title page, reference
page, tables, and any appendixes—is consistent
with APA guidelines as directed by the
facilitator. The analysis is laid out with effective
use of headings, font styles, and white space.
 Rules of grammar, usage, and punctuation are
followed; spelling is correct.
3
You had no major
spelling or grammar
errors.
Total
Available
Total
Earned
15 15