How Universal Health services revenue mix compares to revenue blend of not for profit entity; St Jude Children Research Hospital.
The Universal Health’s revenue mix Inc has its basis on services that are provided to the inpatients while that of St Jude is based on contribution sources. In that respect, the revenue mix percentages for Universal health and St Jude is summarized in the following table.
In view of the above table, Universal’s revenue mix is marked by third party payments through Medicaid and Medicare. Other sources include the managed care and individual patients’ payments. In that respect, Medicare is the largest source followed by managed care and other sources. On the other hand, the non-profit organization’(St Jude) revenue mix is marked by external funding received as grants, gifts and contributions being the most significant followed by program service revenue and government contributions.
Changes in the Revenue mix
Considering St Jude’s 2014 Annual report and SEC filings, the following is the revenue mix for St Jude.
In view of the above table, it is clear that the hospital’s revenue mix is marked by public support, Investment income, Net Patient Service Revenue, research grants and others. That indicates an introduction of Investments as a key revenue source for the non-profit organization. However, the public support retains its significance in the mix while that of government grants reduces. In that respect, there is a change in the revenue mix
How the revenue mix would change if government operated the hospital.
If operated by the government the hospital could be operating in a slightly different manner compared to the current status. For instance, a hospital run by the government does not rely on debt offerings and charitable organizations. Instead, the hospital would seek funds through state, local, and federal taxes. Also, the government operated hospitals have access to unlimited funding through the tax while the funding for non-profit hospitals is limited to contributions from the charitable organization. Also, there would be a change in that the hospital would be operated under the strict instruction and supervision of government compared to the non-profit hospitals whose management answers to the Board.
