Assessing Reality in Healthcare Financial Information

Healthcare stakeholders, including management, regulators, investors, rating agencies, lenders, media and others seek information to evaluate operating margins and profitability metrics for hospitals and other healthcare organizations. Financial statements, tax/information returns and Medicare cost reports are key information sources for the healthcare industry, but many times they convey seemingly contradictory information, which creates confusion for both management and external stakeholders. Understanding the purpose and use of distinct information sources is essential to assessing reality in healthcare information.