598 Financial statement

Centra Health Inc.’s Expenses and Revenue’s Performance Student Name Institution Professor Name Course Date Centra Health Inc.’s Expenses and Revenue’s Performance Trends in Expenses and Revenue, and whether They are on Target to Meet Budget Goals The following are the recent expenses and revenues for Centra Health as shown in its financial statement. Centra Health, Inc. and Subsidiaries Consolidated Statements of Operations for the Years Ended December 31, 2021 and 2020 Particulars Amount ($)   2021 2020 Operating revenue and other support     Net patient service revenue 1,194,842,000 995,721,000 Premium revenue 56,683,000 71,947,000 Net assets released from restrictions for operations 2,715,000 2,337,000 Other operating income 92,422,000 119,950,000 Total operating revenue and other support 1,346,662,000 1,189,955,000 Operating expenses:     Salaries and wages 502,826,000 503,704,000 Benefits 111,138,000 102,378,000 Contract Labor 47,387,000 17,837,000 Professional services 57,795,000 61,550,000 Purchased services 111,034,000 88,070,000 Medical supplies and drugs 225,763,000 205,418,000 Medical claims expense 34,519,000 34,972,000 Other operating expenses 110,950,000 104,836,000 Depreciation and amortization 50,582,000 53,766,000 Interest 16,323,000 17,570,000 Loss on early extinguishment of debt 1,287,000 0 Total operating expenses 1,269,604,000 1,190,101,000 Operating gain/ loss 77,058,000 -146,000 Source: https://projects.propublica.org/nonprofits/display_audit/7868920211 From the consolidated statements of operations above, the net assets released from restrictions for operations increased from $ 2,337,000 in 2020 to $ 2,715,000 in 2021. In addition, the net patient revenue increased from $995,721,000 in 2020 to $1,194,842,000 in 2021 (ProPublica, 2024). This data indicates that Centra Health continues to be financially strong. Chmielewska et al. (2022) assert that hospitals use net patient revenue to determine their financial strength, helping them to develop essential business strategies. The increase in the net assets released from restrictions for operations indicates that the hospital used the assets donated to it prudently for the specified project. The above two items were the major contributors to Centra Health’s total operating revenue and other support, which increased from $1,189,955,000 in 2020 to $1,346,662,000 in 2021.   The consolidated statements of operations indicate that medical claims expense and professional services decreased from $34,972,000 and $61,550,000 in 2020 to $34,519,000 and $57,795,000 in 2021, respectively. In addition, salaries and wages decreased from $503,704,000 in 2020 to $502,826,000 in 2021. On the other hand, benefits and contract labor increased from $102,378,000 and $17,837,000 to $111,138,000 and $47,387,000, respectively. Moreover, purchased services, and medical supplies and drugs increased from$88,070,000 and $205,418,000 to $111,034,000 and $225,763,000, respectively. In hospitals, employee income levels play decisive roles, and benefits help employers in branding, recruitment, and employee retention (Ahmed et al., 2020). However, Centra Health should re-look at its benefits and contract labor as they increased at high rates, increasing total operating expenses. Purchased services also increased with benefits and contract labor, which is worrying. Centra Health needs to have better management of purchased services to help it in saving costs. From the above performance, Centra Health improved from an operating loss of $-146,000 in 2020 to an operating gain of $77,05...