"An empowered organization is one in which individuals have the knowledge, skill, desire, and opportunity to personally succeed in a way that leads to collective organizational success.(Covey,2011)." Financial management within an organization is crucial to the success and stability of the organization. Financial information on Patten Fuller Hospital will be covered in this paper. More specifically, difference between audited and unaudited statements and reporting on the hospital's ratios will be included. Finally, information related to the relationship on revenue sources and expenses which included how the hospital revenues and expenses are grouped for planning and control will be included. The differences between the audited and unaudited sections of the financial statements are very different. According to Patton-Fuller (2011), it seems the financial officer had over-estimated the payments, giving the impression that the organization would be doing a lot better than they actually did. When providing numbers for accounts receivable in 2009 the financial officer estimated the total at (totals shown in the thousands) $59,787, with a net allowance for bad debt for the same time-period at $10,757 while the audited version shows a very different picture. Accounts receivable for 2009 revealed a total $58,787, a one million dollar lower receivable difference. In addition, the net allowance for bad debt is shown at, $11,757, a one million dollar increase. The differences showing the audited amounts appear to show a vast difference. In addition, reveal a two million dollar deficit, from the unaudited version. This difference could in time cause the organization to suffer. Are the financial ratios for the hospital improving? Explain. With this scenario I would have to say no they are not improving. The reason for this is a number of ratios must be analyzed together to get a true and reliable picture of the financial performance of the business. Relying on each ratio...
References: Covey, S. (2011). Inspirational Quotes for Business: Empowerment and Delegation. Retrieved from http://humanresources.about.com/od/workrelationships/a/quotes_empower.htm
Baker, J. a. (2011). Healthcare Finance: BAsic Tools for Nonfinancial Managers (3rd ed.). Jones and Bartlett.
Patton-Fuller Operating Budget . (2008). Retrieved from www.phoenix.edu: https://ecampus.phoenix.edu/secure/aapd/cist/vop/Healthcare/PFCH/HosDepts/CFO/HDCFO004.htm
Patton-Fuller Balance Sheet . (2008). Retrieved from www.phoenix.edu: https://ecampus.phoenix.edu/secure/aapd/cist/vop/Healthcare/PFCH/HosDepts/CFO/HDCFO004.htm
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