Learning Team Sensitivity Analysis Week 5 Final Project

Resources: Patton-Fuller Community Hospital Virtual

Organization and University of Phoenix Material:

Sensitivity Analysis Grading Criteria

Review the ffinancial statements, annual report, and

budget issues documents, located in the Patton-Fuller

Community Hospital Virtual Organization.

Create a 3 to 4 slide Microsoft® PowerPoint®

presentation that summarizes elements that affect

staffing at Patton-Fuller, such as raises in wages and

changes in the nurse-to-patient ratio. Include speaker

notes.

Include the following in your presentation:

• Provide a comparative analysis of the last two years

of data.

Financial Statements

Patton – Fuller Community Hospital Balance Sheet 2009 – 2008 (In Thousands) (Unaudited)
	2009	2008
Assets
Current Assets
Cash and Cash Equivalents	$22,995	$41,851
Assets of Limited Use	27,594	41,851
Patient Accounts Receivable (net of Allowance for Bad Debts 2009: $10,757 2008: $6,777)	59,787	37,666
Other Receivables (3rd party payer settlements)	—	87
Inventories	18,396	8,370
Prepaid Expenses	95	201
Total Current Assets	$128,867	$130,026
Other Assets
Funded Depreciation	$137,970	$167,404
Held under Bond Indenture	73,584	75,332
Property, Plant and Equipment, net	248,346	175,774
Total Assets	$588,767	$548,535
Liabilities and Equity
Current Liabilities
Current portion of long-term debt	$14,599	$4,185
Accounts payable, accrued expenses	9,198	4,185
Bond interest payable	10	10
Total Current Liabilities	$23,807	$8,380
Other Liabilities
Long-term debt	$452,945	$209,255
less: current portion of long-term debt	14,599	4,185
Net long-term debt	$438,346	$205,069
Total Liabilities	$462,153	$213,450
Equity
Common Stock, $ 0.01 par value 10,000,000 shares authorized 5,000,000 shares outstanding	$50	$50
Additional paid-in capital	0	0
Retained Earnings (or “Net Worth” or “Unrestricted Fund Balance”)	126,564	335,035
Total Liabilities and Equity	$588,767	$548,535

Note: Maximum Annual Debt Service
Bond interest payable	$10	$10
Current portion of long term debt	14,599	4,185
Maximum Annual Debt Service	$14,609	$4,195

Patton – Fuller Community Hospital Operating Budget 2008 (In Thousands)
Revenues
Net Patient Revenue	$418,509
Other Revenue	2,805
Total Revenues	$421,314
Expenses
Salaries and benefits	$214,129
Supplies	71,346
Physician and professional fees	107,065
Utilities	1,164
Other	1,784
Depreciation & Amortization (non-cash expenses)	24,955
Interest	3,597
Provision for doubtful accounts	13,383
Total Expenses	$437,424
Operating Income	($16,110)
Non-operating Income (Loss)
Investment Income	264
Net Income	($15,846)