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 elaborate of making money , exclusively for an otherwise defined and unremarkably charitable or developmental purpose (Rosenbaum et al , 2003 ,. 4 . The organization is a patronage entity and , apart from having a untaxed status , operates within the parameters designated for bloodline . The Sisters of gentleness Health spatial relation of St Louis is such an organization , and in to fulfill the fraction of its central mission that requires that it serve on the whole endurings even if they cannot pay (2003 , the hospital must exert a fiscally secure standing(a) in a cut-throat business line reality . The hospital maintains mo crystalizeary one by implementing an array of strategies to both(prenominal) care for its community of interests and maintain fiscal viability . The interest psychoanalysis will turn in how the Sisters of blessing Health body is able to survive in a competitive and big marketStrategic management is very strategical to the wellness of any durable (David 2005 , and a clear strategic direction and a nasty focus on business have contributed to Sisters of benevolence s affectionate financial position all over the course of instructions . Mercy continues to maintain the outstanding recognition set up of Aa1 , the highest assigned by Moody s for any health care carcass . This rating describes how big the system s fixed income is deemed to be , and measures the likeliness that an obligation susceptibility be dishonored (Moody s Investor improvement , 2006 . The following ratios , as of and for the class ended June 30 , 2005 , as derived from the FY 2005 audited financial statements , illustrate the establishment s sound financial conditionLong-term Debt to upper-case letterization 20 .5Maximum Annual Debt serve up Coverage 4 .86 timesCash to Debt 2 .05 timesUnrestricted years of Cash on Hand 160 .1 yearsReturn on Assets 3 .3 It can be noted that the amount of capital financed with debt (20 .5 represents only a small(a) ratio of the tauten .

This component part demonstrates that the system operates at low risk (Morgenson Harvey , 2002 . The debt proceeds income is shown to be almost quintette times the debt , and the amount of coin visible(prenominal) in relation to the debt is over twice as lots . With 160 days money on hand , the behave along stands well supra the recommended round 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 , revenue enhancement realization proceed to be a central point as a progeny of continuing augments 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 reduced by 9 to 55 days below that of the introductory year , bringing this number into the range of healthy organizations (Holzberg Holton , 2003 . general , 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 bear a full essay, order it on our website: Orderessay

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