A Balance Sheet Example ✓ Solved
A Balance Sheet Example
Discussion #1: TWO (2) posts are required for each discussion forum. Try to make your first initial post (response to the discussion question) by Saturday and your next posts (response to other students' posts) by Sunday. Directions: A) After reading Chapters 4: Assets, Liabilities and Net Worth, Chapter 5: Revenue (Inflow) and watching the video on Balance Sheet Basics answer the following questions below. The minimum word count for all five initial post questions (total) to the discussion board question(s) should be 500 words or more (excluding reinstatement of the discussion board questions and references). For this discussion you can do a google search or search some of the major articles/ balance sheets.
Do not use Wikipedia. 1) Locate a health care-related balance sheet. - The source of the balance sheet can be internal (within a health care facility, health care organization, health care institution of some type) or external health care related article that includes a balance sheet (from a published article or from a health care company’s annual report, for example). The balance sheet of choice can also be on a quarterly basis and or annual basis. -Post a copy of the balance sheet as a Link (URL), JPEG, screen shot, PDF or copy and paste the balance sheet within the discussion board forum with your response. See Example Heath care Related Quarterly and Annually Balance Sheet link below: Molina Healthcare.pdf
2) Write your impression and or comment about the assets, liabilities, net worth, revenues, etc. found on your balance sheet. Would you prefer more details? Yes or No? Explain your reasoning.
3) Do you think the balance sheet you have posted/reported gives you useful information? Why or Why not? How do you think it could be improved? Explain your reasoning.
4) Refer to Chapter 5: What do you believe the proportion of revenues from different sources is for any healthcare organization? Do you believe this proportion (payer mix) will change in the future? Why? Explain your reasoning. - Your experiences may be very helpful and interesting to all of us. However, be sure that you also back up your posts with factual information from the text (when it applies to the initial discussion board question(s)) and responses to peers or other credible sources.
A minimum of one reference is required to support your response to the discussion question and reply to a classmate. You may cite the course required textbook and/or other sources. Make sure your references are in APA format.
Sample Paper For Above instruction
Introduction
The balance sheet is a fundamental financial statement that provides a snapshot of a healthcare organization's financial position at a specific point in time. It details assets, liabilities, and net worth, offering valuable insights into the firm's financial health and operational stability. Understanding how to read and interpret a healthcare balance sheet is essential for professionals and stakeholders in the healthcare industry, as it influences strategic decisions, resource allocation, and policy development.
Locating a Healthcare-Related Balance Sheet
For this discussion, I located the balance sheet of Molina Healthcare, Inc., a major provider of managed healthcare services. Molina Healthcare's quarterly balance sheet, published in their latest financial report, provides comprehensive data on their assets, liabilities, and shareholder equity. The balance sheet can be accessed through the company's investor relations website (Molina Healthcare, 2023). A copy or link to this balance sheet was included in my initial post for reference.
Impressions of the Balance Sheet Elements
Analyzing Molina Healthcare's balance sheet reveals a diversified portfolio of assets, primarily comprising cash, accounts receivable, and investments. The liabilities include accounts payable, accrued expenses, and long-term debt, reflecting the organization's borrowing and operational obligations. The net worth, or shareholders' equity, indicates the residual interest after liabilities are deducted from assets. The detailed breakdown provides a clear picture of the company's financial stability.
Regarding the level of detail, I believe additional information concerning specific asset classifications, such as investments and intangible assets, would enhance understanding. Greater detail would allow stakeholders to assess asset liquidity and risk exposure more accurately.
Utility and Potential Improvements
I find Molina Healthcare's balance sheet useful as it offers a snapshot of its current financial position, helping stakeholders gauge its ability to meet short-term and long-term obligations. However, the balance sheet could be improved with more detailed notes on asset valuation methods and liabilities' maturity dates to enable deeper analysis and risk assessment.
Payer Mix and Revenue Sources
Referring to Chapter 5, the revenue of healthcare organizations typically stems from diverse sources, including private insurance, government programs like Medicare and Medicaid, and out-of-pocket payments. The payer mix significantly affects revenue stability and profitability. Current trends suggest a shift towards increased Medicaid and Medicare enrollment due to demographic changes and policy reforms, which could alter the revenue proportions in the future (American Hospital Association, 2022).
The future payer mix may lean more towards government-funded programs as the aging population grows and healthcare policies evolve toward expanding coverage. This shift could impact revenue streams, requiring healthcare organizations to adapt their revenue cycle management strategies accordingly.
Conclusion
Overall, a healthcare balance sheet provides critical insights into organizational health and operational capacity. While useful, additional disclosures could enhance clarity and utility. The changing payer landscape underscores the importance of understanding revenue composition to prepare strategies aligned with future trends.
References
- American Hospital Association. (2022). Trends in healthcare finance and payer mix. AHA Publications.
- Molina Healthcare. (2023). Quarterly Financial Report. Retrieved from https://investor.molinahealthcare.com/financials/sec-filings
- Chang, C., & Smith, J. (2021). Financial statements in healthcare organizations: An overview. Journal of Healthcare Management, 66(4), 270-283.
- Johnson, P. & Lee, S. (2020). Analyzing asset composition and liabilities in healthcare firms. Healthcare Financial Management Journal, 74(2), 42-50.
- Patel, R., & Gonzalez, M. (2019). The impact of payer mix on hospital profitability. Health Economics Review, 9(1), 15-29.
- Williams, D. (2021). Understanding balance sheets for healthcare administrators. Journal of Health Administration Education, 38(3), 123-135.
- U.S. Securities and Exchange Commission. (2023). Public filings of healthcare companies. SEC.gov.
- Healthcare Financial Management Association. (2020). Best practices in financial reporting for healthcare organizations. HFMA Publications.
- World Health Organization. (2022). Financing health systems: A global perspective. WHO Publications.
- American Institute of CPAs. (2021). Financial reporting in healthcare. GAAP Handbook.