[Omar Zalatimo]

I would agree with the prior statements. This financial statement is all over the place and does more to confuse than to provide actionable information. While this has been the method most healthcare organizations follow, it seems as though times may be changing with more realistic accounting.

Another issue in many institutions I have worked with is that there are many barriers to getting the proper financial statements in a granular form. Even within the organization, they can put unnecessary cost into overhead depending on how they do the numbers.

We also run into significant silos where groups only focus on their balance sheet without considering how their service has downstream effects as those effects do not have a clear line item on their balance sheet. Being focused is a good way of keeping on top of your Ps and Ls, but without the proper perspective it is missing the forest for the trees.

Having the skills to understand these types of statements is essential.

 

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