American Hospitals in Financial Comparison Essay

Hospital Selection

This paper deals with discussion of the financial aspect of two selected Hospitals from the free area of American Hospitals. The list of American Hospitals belonging to this category is long, but this research narrows down to the selection of two that is, Harrison County Health Department and Georgia Department of Community Health. These two hospitals have well updated financial statements; hence, this project prefers them for a detailed discussion. According to studies, the financial position of the hospital undergoes an annual Summary, whereby their financial performance for the period emerges (Gapenski & Pink, 2007). The reports from each hospital is auditable and so each of them prepare comprehensive budget at the start of the year.American Hospitals in Financial Comparison Essay

Discussing the Financial Position

The financial position of these two hospitals reflects the fact that they operate as mission hospitals, and that their principal objective is not entirely profit-making enterprise, even though Georgia Department of Community Health measures its profitability. They depend on donors for funding and at the end of a financial period; they have either surplus or deficit. For Harrison County Health Department, we view the financial position by evaluation the cornerstone elements of financial statements such as the deficit, surplus. Likewise, for Georgia Department of Community Health, the research explores the nature of its expenses against income from grants and federal resource allocation. The same system of position determination follows, involving a comparison between income and expenditure.American Hospitals in Financial Comparison Essay

Harrison County Health Department Financial position

This research refers to an extract of the financial statement of Harrison County Health Department for the year 2011. The statement reflects a pattern of income and expenditure with the highest expense emanating from Personal Services to the tune of US$415,250.00, and the total expense for the period was US$575,971.56. The total income according to the statement added up to a total of US$591,523.60. The surplus after all the expenditure consideration was US$15,552.04.

Georgia Department of Community Health

For Georgia Department of Community Health, the expenditure summed up to US$520,750 while the sum of all incomes came to US$570,300. This leaves a surplus of US$49,550. What contributes to higher surplus for Georgia Department of Community Health is the fact that the institution has mobilized community-based income generating sources from within rather than depending on external grants. For Georgia Department of Community Health Department, Salaries and taxes takes only 53 percent of the total revenue.American Hospitals in Financial Comparison Essay