Augusta Georgia Hospital's Worksheet G Series Comparison
On the Medicare Cost Report, the Worksheet G series contain financial statement information. Most of the time, the information provided would not be from audited financial statements. Just want to point out the information can change. It’s also rare, if ever, these worksheets are audited. Again, the information reported might not be accurate.
The worksheets are as follows:
- Worksheet G - Balance Sheet
- Worksheet G-1 - Statement of Changes in Fund Balances
- Worksheet G-2 - Statement of Patient Revenues and Operating Expenses
- Worksheet G-3 - Statement of Revenues and Expenses.
Let’s see if we can take a look at these worksheets and derive any meaningful financial information regarding these hospitals.
Worksheet G - Balance Sheet
A balance sheet is Assets = Liabilities + Owners Equity.
| Type | AU Medical | University Hosp | Doctors Hosp | Burke Medical | Univ-McDuffie |
|---|---|---|---|---|---|
| Assets | $611,608,418 | $997,157,168 | $191,333,254 | $7,577,818 | $41,782,495 |
| Liabilities | $301,889,466 | $376,880,404 | -$475,454,274 | $2,854,316 | $23,649,955 |
| Owners Equity | $309,718,952 | $620,276,764 | $666,787,528 | $4,723,502 | $18,132,540 |
The negative liability amount for Doctor’s Hospital looks odd; could be right though. Overall, nothing crazy. Surprised how light Burke Medical’s numbers are. Wonder if that’s changing now that they are under new management.
Worksheet G-3 - Income Statement
They don’t call it an income statement, but it sure looks like one to me.
| Type | AU Medical | University Hosp | Doctors Hosp | Burke Medical | Univ-McDuffie |
|---|---|---|---|---|---|
| Revenue | $3,469,376,238 | $1,579,358,932 | $3,907,920,833 | $35,511,344 | $80,069,641 |
| Contractual Allowances | $2,723,971,951 | $1,096,700,768 | $3,361,545,683 | $27,549,763 | $58,500,001 |
| Net Patient Revenue | $745,404,287 | $482,658,164 | $546,375,150 | $7,961,581 | $21,569,640 |
| Operating Expenses | $937,367,826 | $499,362,053 | $363,823,959 | $14,105,566 | $21,314,782 |
| Net Income - Patient Svcs | -$191,963,539 | -$16,703,889 | $182,551,191 | -$6,143,985 | $254,858 |
| Other Income | $191,486,251 | $72,306,823 | $2,525,917 | $8,612,857 | $4,573,584 |
| Net Income | -$477,288 | $55,602,934 | $185,077,108 | $2,468,872 | $4,828,442 |
It sure does look like AU Medical lost money operating during this cost report period.
There are few things I want to point out regarding operating a hospital. Revenue is not really a meaningful number. They can charge whatever they want, but they have contracts that will pay what they agreed to. That’s what contractual allowances are. These are the adjustment made to revenue to bring down account balances to the expect amount due per contract. For AU Medical, net patient revenue is about 21% of total revenue. University Hospital is about 31% of total revenue and Doctors Hospital is about 14% of revenue.
The second thing I want to point out is a lot of these hospitals are losing money providing patient services. See the “Net Income - Patient Svcs” line. This industry gets a lot of hate, but it is certainly a tough industry to survive in.
Musing Revelation
Overall, I’m really surprised at how little assets Doctors Hospital and Burke Medical Center have. It’s also surprising and a little scary how most of the hospitals struggle to cover expenses for providing patient care. The other income figures make most of the hospitals look really healthy - and maybe they are. It appears though some of the other income is tied to investment income. If you continually have to take money from savings, eventually the piggy bank will be empty. This is the COVID-era, so maybe things will turn around quickly. We desperately need healthcare.
University Hospital Worksheet G series
Doctors Hospital Worksheet G series