The Success of Your Clinic Depends on the Success of Your Financial Management!

1. Health Center Board Member Workshop MPCA Finance 101 Jim Raschke, MBA, FHFMA Finance Director MidMichigan Health Services Roscommon County, Michigan

2. Financial Statements should not be a mystery!

3. Concepts Numbers always tell the truth

5. Are you kidding me?

7. Hey, come back! I’m not done yet!

9. Okay, one more!

10. One More Concept The Success of Your Clinic Depends on the Success of Your Financial Management

14. Income Statement Year to Date Actual Budget Prior Year Gross Patient Service Revenue $1,963,791 $1,898,385 $1,613,452 Provision for Adjustments (356,653) (397,936) (409,435) Net Patient Service Revenue 1,607,138 1,500,449 1,204,017 Other Operating Revenue 464,047 452,755 439,698 Total Operating Revenue 2,071,185 1,953,204 1,643,714 Total Operating Expenses 2,035,416 1,908,265 1,598,732 Total Operating Income 35,769 44,938 44,983 Non-Operating Income 8,172 3,976 (1,407) Total Income $43,941 $48,914 $43,576 Operating Margin 1.7% 2.3% 2.7% Total Margin 2.1% 2.5% 2.7%

16. Income Statement Year to Date Actual Budget Prior Year Gross Patient Service Revenue $1,963,791 $1,898,385 $1,613,452

20. Income Statement Year to Date Actual Budget Prior Year Gross Patient Service Revenue $1,963,791 $1,898,385 $1,613,452 Provision for Adjustments (356,653) (397,936) (409,435) Net Patient Service Revenue 1,607,138 1,500,449 1,204,017

23. Income Statement Year to Date Actual Budget Prior Year Gross Patient Service Revenue $1,963,791 $1,898,385 $1,613,452 Provision for Adjustments (356,653) (397,936) (409,435) Net Patient Service Revenue 1,607,138 1,500,449 1,204,017 Other Operating Revenue 464,047 452,755 439,698 Total Operating Revenue 2,071,185 1,953,204 1,643,714

25. Income Statement Year to Date Actual Budget Prior Year Gross Patient Service Revenue $1,963,791 $1,898,385 $1,613,452 Provision for Adjustments (356,653) (397,936) (409,435) Net Patient Service Revenue 1,607,138 1,500,449 1,204,017 Other Operating Revenue 464,047 452,755 439,698 Total Operating Revenue 2,071,185 1,953,204 1,643,714 Total Operating Expenses 2,035,416 1,908,265 1,598,732

27. Income Statement Year to Date Actual Budget Prior Year Gross Patient Service Revenue $1,963,791 $1,898,385 $1,613,452 Provision for Adjustments (356,653) (397,936) (409,435) Net Patient Service Revenue 1,607,138 1,500,449 1,204,017 Other Operating Revenue 464,047 452,755 439,698 Total Operating Revenue 2,071,185 1,953,204 1,643,714 Total Operating Expenses 2,035,416 1,908,265 1,598,732 Total Operating Income 35,769 44,938 44,983

29. Income Statement Year to Date Actual Budget Prior Year Gross Patient Service Revenue $1,963,791 $1,898,385 $1,613,452 Provision for Adjustments (356,653) (397,936) (409,435) Net Patient Service Revenue 1,607,138 1,500,449 1,204,017 Other Operating Revenue 464,047 452,755 439,698 Total Operating Revenue 2,071,185 1,953,204 1,643,714 Total Operating Expenses 2,035,416 1,908,265 1,598,732 Total Operating Income 35,769 44,938 44,983 Non-Operating Income 8,172 3,976 (1,407)

31. Income Statement Year to Date Actual Budget Prior Year Gross Patient Service Revenue $1,963,791 $1,898,385 $1,613,452 Provision for Adjustments (356,653) (397,936) (409,435) Net Patient Service Revenue 1,607,138 1,500,449 1,204,017 Other Operating Revenue 464,047 452,755 439,698 Total Operating Revenue 2,071,185 1,953,204 1,643,714 Total Operating Expenses 2,035,416 1,908,265 1,598,732 Total Operating Income 35,769 44,938 44,983 Non-Operating Income 8,172 3,976 (1,407) Total Income $43,941 $48,914 $43,576 Operating Margin 1.7% 2.3% 2.7% Total Margin 2.1% 2.5% 2.7%

33. Balance Sheet June, 2006 May, 2006 December, 2005 Assets Cash $697,065 $765,073 $749,766 Net Accounts Receivable 196,960 203,147 184,154 Other Current Assets 407,083 452,382 474,797 Total Current Assets 1,301,109 1,420,603 1,408,717 Net Property & Equipment 2,914,251 2,851,830 2,872,338 Other Assets 9,151 9,389 10,579 Total Assets $4,224,511 $4,281,821 $4,291,634 Liabilities and Net Assets Current Liabilities $669,939 $741,581 $710,766 Other Liabilities 1,293,945 1,312,846 1,405,929 Total Liabilities 1,963,884 2,054,428 2,116,695 Net Assets 2,260,627 2,227,394 2,174,939 Total Liabilities and Net Assets $4,224,511 $4,281,821 $4,291,634

36. Ready for more?

43. Measuring your progress!

47. Jim Raschke, MBA, FHFMA Finance Director MidMichigan Health Services 989.422.2105 [email_address]