Financial reports are documents you create to review and track how much revenue your facility is making (or not). Many facilities have outside investors, owners, shareholders, board members or lenders who require information contained in financial reports. They also have a right to know if their money is being spent wisely or returning a profit. After all, they are partially supporting your facility, and it is essential that they are kept up-to-date with your financial position.
Use of integrated software, such as PointClickCare, allows you to perform clinical and billing functions with the added benefit of the general ledger and accounts payable module, where you can customize your own financial statements. This integration allows you to automate the reporting process, and that results in less potential for human error, as opposed to Microsoft Excel-based statements.
Customizing your financial reports also allows you to compare apples to apples at a more focused scope, such as by payer. This payer focus can be utilized to produce reports with more accurate costs per day due to the integration between the modules. There are accurate census days flowing to the general ledger to reflect accurate PPDs on the income statements, because you’re comparing private revenue with private days, Medicaid revenue with Medicaid days, etc.
Effective use of the income statement would also involve comparisons to prior periods to watch for trends and then using all of the financial reports in combination to analyze the business and its outlook for the future.