| |
| Financial
Review Sections: |
| General
Background |
| The
General Background section is used to inform the reader of some
of the general information about the facility that may influence
the financial operations of the facility, such as location,
competitive factors, services offered, make up of medical staff,
governmental organization and the make up of the facilities
Board. |
| Summary
of Findings |
| The
Summary of Findings section summarizes the financial issues
in the financial review. The Summary is not intended to be an
all-inclusive list of findings and should not be considered
a priority listing. It is intended to provide Administration
and the Board with a summary of the information that will be
found in the Financial Analysis sections. |
| Financial
Analysis |
| Fiscal
Management: |
| This
is a review of the fiscal management function and how it is
being provided in the facility. An opinion is rendered as to
whether the fiscal management is prospective or only retrospective
in nature. Review of the current job descriptions and policies
and procedures are compared with other successful facilities.
The fiscal management function is reviewed for optimization
of staff and the appropriate accountability and productivity
standards. |
| Organization: |
| The
fiscal services organizational chart is reviewed for job responsibilities
and appropriateness of the functions. |
| Computer
System: |
| The
computer system is evaluated regarding its capabilities in supporting
the fiscal management function. Review of the systems reporting
function as it relates to the adequacy to support the financial
planning process. |
| Payroll/Accounts
Payable: |
| The
payroll and accounts payable function is evaluated as it relates
to its effectiveness in supporting financial operations. |
| Purchasing: |
| The
facilities purchasing system and policy is reviewed to insure
the proper systems are in place to control inventory and minimize
lost charges. |
| Accounts
Receivable: |
| A
detailed analysis of accounts receivable is conducted. A report
is produced to determine the status of the receivables and how
long, on average, it takes for a patient bill to be paid. An
analysis of allowance for doubtful accounts is conducted for
balance sheet purposes. |
| Lost
Charges: |
| The
internal charging systems are reviewed to evaluate their effectiveness
to reduce lost charges in the facility. |
| Lower
of Costs to Charges: |
| The
current year cost report is reviewed to evaluate if the facility
is maximizing its lower of cost to charge cost centers, and
the allocation of salary and wages is taking place. The accounting
system is reviewed to evaluate if it supports the maximization
of the costs reporting process. |
| Operational
Analysis: |
| A
detailed analysis of the financial operations of the facility
is conducted for the past four (4) years, to include a review
of the facilities current financial operations. |
| Internal
Budget Process: |
| Review
of the facilities participation in an internal budgeting process
and how it is being used during the year as part of the monitoring
process. The budget process is reviewed to evaluate its reflection
on the facilities financial planning process. |
| Board
Responsibilities: |
Evaluation
of the Boards participation in the budgeting process regarding
the setting of financial goals for the coming year is reviewed.
The Finance Committee's role in the financial outcomes of the
facility and the information the committee receives for evaluation
is reviewed.
The Boards financial planning involvement is reviewed and their
commitment in taking an active role in the financial planning
process both from a decision making process as well as the monitoring
process. |
| Exhibits |
| Exhibits
are sometimes used to support a problem that is outlined within
the report. The most common type of exhibit is the cost report
analysis of the caparison of costs to charges. Other exhibits
may be included depending on the circumstances. |
| Appendices |
The
Appendices section contains two (2) sections:
1. An analysis of the last four (4) year's financial statements
is conducted. When it is possible the fourth year may be a projection
of the current fiscal year.
2. A detailed analysis of the Accounts Receivable is conducted
for the Hospital and Nursing Home and/or Clinics. This analysis
is conducted for the past fiscal year and for the current period.
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