Case Study HSC

Sheet1

Case 13.3: North Side Hospital			Copyright © 2017 Foundation of the American College of Healthcare Executives.
	Description	Gross Receivable	January	February	March	Total	15% Not Collected	Remaining
			Collections	Collections	Collections	Collected		Collectible
						Excluding		Receivable
						2% Discount		Balance
	November receivables	$15,000		$0	$0	$0		$0	Note: November receivable comprised 15% second month after service collection plus 15% uncollectible—thus, 50% in each category.
	December receivables	$25,000			$0	$0		$0	Note: December receivable comprised 20% month after service, 15% second month after service, plus 15% uncollectible—thus total of 50%. Split is, therefore, January 20%/50%, February 15%/50%, and Not Collected 15%/50%.
	January receivables	$200,000						$0
	February receivables	$210,000	$0					$31,500
	March receivables	$220,000	$0	$0	$110,000			$77,000
	Less: 2% discount		$2,000	$2,100	$2,200	$0			Note: 2% discount only applies to current month 50% of gross monthly revenues.
	Total cash inflows from receivables	$670,000	$115,500	$150,400	$179,800
		December	January	February	March
	Cash disbursements for expenses in month incurred	$75,000
	Cash disbursement for expenses in month AFTER incurred
	Cash balance change from operations for month
	Cash balance, beginning		$40,000	$40,000	$40,000
	Cash from financing								Note: Since initial cash balance was target cash balance, the operating cash change each month is the Cash From Financing effect.
	Cash balance, ending		$40,000	$40,000	$40,000

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