Ambulatory Surgery Center Statement Of Operations Fiscal

Sheet1ambulatory Surgery Centerstatement Of Operationsfiscal Year Ende

Sheet1ambulatory Surgery Centerstatement Of Operationsfiscal Year Ende

Sheet1 AMBULATORY SURGERY CENTER Statement of Operations Fiscal Year ended December 31, 2018 Revenues 2018 Actual 2018 Budget Variance Variance % Gross Patient Services Revenue $13,894,746 $13,988,832 $(94,086) (0.67%) Contractual Adjustment $7,879,910 $(31%) Charity Care Adjustment $625,497 (4%) Bad Debt Adjustment $277,777 (1%) NET PATIENT REVENUE $5,111,966 $5,168,712 $(56,746) (1.10%) Other Revenue - TOTAL OPERATING REVENUES $5,111,966 $5,168,712 $(56,746) (1.10%)

Expenses Clinical Salaries Expense $608,988 $608,988 0 0% Clinical Benefits Expense $91,348 $0 0 0% Admin Salaries Expense $228,660 $0 0 0% Admin Benefits Expense $34,299 $0 0 0% Allocated Overhead Salaries And Benefits Expense $250,000 $0 0 0% TOTAL PERSONNEL EXPENSE $1,213,295 $1,213,295 0 0% Drugs & Supply Expense $1,558,549,491 $0 0 0% General & Administrative Expense $200,000 $0 0 0% Facilities & Equipment Expense $300,000 $0 0 0% Depreciation Expense $812,143 $0 0 0% Interest Expense $323,612 $0 0 0% Allocated Overhead Other Expenses $40,000 $0 0 0% TOTAL OPERATING EXPENSES $4,447,955 $4,438,540 $9,415 0.21%

TOTAL OPERATING INCOME $664,011 $730,172 $(66,161) (9.07%)

Non Operating Income - %

EXCESS OF REVENUES OVER EXPENSES $664,011 $730,172 $(66,161) (9.07%)

Operational Analysis

  • Surgical Cases Per year: 0.0 (0%)
  • # of ORs needed per year: 2.5 (0%)
  • # of FTEs per year: 14.8 (0%)

Ratio Analysis

Operating margin % (Total Operating Income / Total Operating Revenue): 13% (Actual), 14% (Budget), Variance: -1%

Paper For Above instruction

The financial performance and operational efficiency of ambulatory surgery centers are crucial metrics that reflect their ability to deliver quality care while maintaining financial stability. The fiscal year ending December 31, 2018, provides a comprehensive overview of the financial health of an ambulatory surgery center (ASC), highlighting revenues, expenses, and key performance ratios. Analyzing these elements offers insights into the center’s operational strengths and areas for improvement, which are essential for strategic planning and sustainability in a competitive healthcare environment.

The revenue side of the ASC's financial statement reveals that gross patient services revenue for 2018 was approximately $13.89 million, slightly below the budgeted $13.99 million, resulting in a variance of approximately -0.67%. This shortfall can be attributed to contractual adjustments, charity care, and bad debts, which collectively reduced net patient revenue to about $5.11 million from the expected $5.17 million, a variance of roughly -1.10%. These adjustments highlight the challenges ASC face in optimizing revenue streams given payer negotiations, patient demographic factors, and collection efficiency.

Expenses in the center's operations were primarily driven by personnel costs and supply expenses. Total personnel expenses, including salaries and benefits for clinical and administrative staff as well as allocated overhead, totaled around $1.21 million, with no significant variances from the budget. Notably, drugs and supply expenses alone represented a substantial portion of operating costs at approximately $1.56 million, though the report suggests a possible data entry or formatting error as it appears unusually high relative to total revenues. Nonetheless, other expenses such as administrative costs, depreciation, and interest also contribute to the overall expense profile.

The operating expenses totaled approximately $4.45 million, aligning closely with the budget and resulting in an operating income of about $664,000, which is slightly below the projected $730,000. The operating margin, calculated as operating income divided by total revenues, was 13% versus a budget of 14%, reflecting a narrow gap that suggests overall effective cost management but also indicates potential areas for revenues enhancement or expense control. This margin is significant in the context of healthcare financial management, as it impacts the center’s capacity to reinvest in operations and improve service delivery.

The center’s operational metrics, including surgical case volume, number of operating rooms, and FTE staff, show stable planning with no significant deviations from targets. These metrics are critical for capacity planning, workload balancing, and ensuring adequate staffing to meet patient demand while controlling costs. A consistent operating environment enables the center to focus on quality improvement initiatives without the disruptions of significant operational shifts.

From a ratio perspective, the operating margin of 13% demonstrates the center’s ability to generate profit relative to its revenues, a key indicator of financial health. This margin, slightly below the budget estimate, emphasizes the importance of ongoing revenue cycle improvements and expense management strategies. Healthcare organizations continuously strive to optimize these ratios through process improvements, renegotiated payer contracts, and cost containment measures. Furthermore, the balanced staffing levels and throughput planning reflected in the operational metrics indicate sound management practices aimed at sustainable growth.

Looking forward, ASC management should focus on strategies to enhance revenue, such as improving billing and collections, expanding service offerings, or increasing case volume. Equally, controlling supply chain costs and enhancing operational efficiencies can bolster profitability. Investing in data analytics for real-time financial monitoring and operational adjustments can lead to more agile responses to market changes. Additionally, fostering strong payer relationships and patient satisfaction can lead to higher reimbursement rates and repeat business, ultimately improving financial outcomes.

In conclusion, the fiscal analysis of the ambulatory surgery center underscores its relatively stable financial position with modest margins that can be improved through targeted operational enhancements. Maintaining careful expense control, exploring revenue growth opportunities, and leveraging technological innovations are vital for ensuring long-term viability. As ambulatory surgery continues to grow in the healthcare landscape, centers like this must adapt to changing reimbursement models and patient expectations to sustain their operational and financial health.

References

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