Synopses & Reviews
Original publisher: Washington, DC: U.S. Govt. Accountability Office, 2008] OCLC Number: (OCoLC)244393680 Subject: Hospitals -- Louisiana -- New Orleans -- Administration. Excerpt: ...Enclosure I: Scope and Methodology For information on hospital operating results before and after Hurricane Katrina, we obtained the hospitals ' audited consolidated financial statements for the 8-year period 2000 through 2007. All of the audited financial statements for 2000 to 2007 12 received unqualified or clean opinions from independent public accounting firms. For Touro Infirmary, we used the 2007 unaudited consolidated financial statements because audited statements were not completed by the end of our review.We also 13 used hospital budgeted financial statements for 2008. The hospitals ' financial statements include a Statement of Operations which shows 14 revenues, expenses, gains, and losses. The Statement of Operations includes the 15 16 operating income or loss and net income or loss for the year. We relied on amounts in the Statement of Operations for our analysis. Our analysis includes the calculation of three profitability measures that are derived from amounts included in the Statement of Operations--operating income or loss, net income or loss, and earnings before interest, depreciation, and amortization ( EBIDA ). We used these three measures to evaluate changes in hospital operating results. The Statement of Operations for the five hospitals included different categories of revenue and expense in the calculation of operating income or loss. We reclassified categories of revenue and expense so that we could consistently report operating income or loss across hospitals for comparison. For example, we reclassified insurance payments as operating revenue to calculate operating income or loss for all five hospitals, although two of the five hospitals had included insurance payments as nonoperating revenue. We also reclassified hospital investment income, Feder...