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For this assignment, visit the website of a health care system, hospital or health insurance company. Navigate through the website and locate the financial statements of the organization. Hint: the financial statements are usually found under a tab called “Investor Relations” if the organization is for-profit. Please note that this assignment does not pertain to the health care business that you are creating for this class.

Write a one-and-a-half to two-page paper that addresses the following questions; use the suggested outline form as a guide. Do not respond to these questions by numbering them and listing your answers; instead, write a well-constructed paper with paragraphs. The paper should be in standard format, typed and double-spaced and should include a title page and Reference page (be sure to cite the website address of the organization you selected for this assignment).

Introduction – In this section, identify the organization that you are researching and give some background information on this company. Is the organization that you selected a for-profit entity or a not-for-profit entity? How do you know?

Body (financial statement discussion) – Prepare a couple of paragraphs which identify the four types of financial statements used in health care accounting/finance. What information is typically found on each of these financial statements?

Body (income statement analysis) – Locate the income statement for the health care system, hospital or health insurance company that you selected. This statement may also be called the “Statement of Profit and Loss”. In a couple of paragraphs, indicate what was the total incoming revenue for the organization you chose for the most recent fiscal year? What is the total of all operating expenses for the most recent fiscal year? What was the organization’s net income for the most recent fiscal year? Do the expenses appear to be in line with revenue? Why or why not?

Body – In one paragraph, explain the difference between the accrual method of accounting and the cash-basis method of accounting? Which method of accounting does the organization you researched use?

Conclusion – In a well-constructed paragraph, briefly discuss what you learned from reviewing the financial statement section of the website for your organization. Do they appear to be a viable organization overall? Do you have any concerns about this organization, and if so, what are they?

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