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Patton Fuller Community Hospital Virtual Organization

The Patton-Fuller Community Hospital is a privately owned, fully fledged and for-profit hospital. The hospital continues to offer advanced medical services to both inpatient and outpatient treatments. The hospital is owned by a management board of 14 people with 12 of them being doctors working in the hospital. As noted in myprivateresearcher.com, the core objective of the hospital is to continue to provide excellent health services to their patients while making a profit at the same time.
The effects of revenue sources to financial reporting within the health facility varies significantly depending on the source of the income and also the amount of that income. All these sources of income should be documented in the hospital’s financial reports for the hospital’s records. A financial statement is frequently stated as an account. The financial statement must be relevant, comparable, understandable and reliable. The reported liabilities, equity, assets, income, and expenses directly relate to the financial strength of the hospital. These financial statements can be used for various reasons; the management board needs these financial declarations to make important decisions within the hospital that may have a direct impact on the running of the hospital. Prospective investors also can use financial reports to assess the viability of investing in the hospital.

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The financial report provided all figures for accounts receivable in 2009. The financial accountant calculated a total sum of $59,787 which is a net allowance considered as poor debt concurrently at $10,757 the inspected financial report is presenting a completely changed scenario. The accounts receivables for the year 2009 indicated a total sum of $58,787. This represents a one million dollar difference and a further poor debt of $11,757 which also represents a million dollar increase and difference. The inspected amount seems to indicate a huge difference with a deficit of two million dollars. This would be shown in the unaudited section.

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