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Hospice of Randolph
County
David Blake, Jessica Childress, Casey
Thomas

Organizatio
n Profile

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Mission

Hospice of Randolph County serves as an educational

leader while promoting quality of life & supporting
patients and their families in preparing for completion
of life.

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Revenue Streams

Approximately 96% of the net patient service revenue

was derived from federal and state third-party
reimbursement programs, this is consistent with
previous years. These revenues are subject to audit
and retroactive adjustment.

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Concentration of Credit Risk

Hospice of Randolph County, Inc. has significantly

decreased it credit risk. In 2009, they held around a 45
different institutions, in 2013 they had accounts
established at 10 different financial institutions. While
they had more cash and cash equivalents in 2009 with
$3,680,350 they had $2,691,393 in 2013 with the
largest account having a total of $830,453. The smaller
number of accounts is a smart move financially
because it places the organization at less of a risk and
makes money easier to manage.

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What They Owe

The organization has a line of credit worth $300,000

with interest rate at prime. It also has a term loan for
$1,167,746 with an interest rate of 5.5%

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Operating Leases

Hospice of Randolph County, Inc. leases office

equipment for one to four years. The schedule for the
operating lease is expected to decrease yearly from
$22,487 in 2013, to $22,507 in 2014, $15412 in 2015,
$14232 in 2016, and $12408 in 2017.

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Retirement Plan

The organization provides an IRA retirement plan to

employees who earned at lead $5,000 in any of the two
preceding years and are expected to yearn at least
$5000 in the current year. They match up to 3% of
eligible wages. They contributed $60,206 in 2013.

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Investment

Hospice of Randolph County, Inc. made a significant

investment in 2013. The entered into a partnership
with two area hospitals to develop StayWell Senior
Care. The mission of this corporation is to provide
benefits to nursing home eligible seniors similar to the
federal program of all inclusive care for the elderly
(PACE). The organization will open in 2014. Hopsice
of Randolph County, Inc. has agreed to pay $105,000
for 5% interest in the corporation. They have paid 50%
of this in 2013 and will pay the remaining 50% when
the center opens in 2014.

A Look at
Hospice of
Randolph
Countys
Financials

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Profitability Ratios
Five Years
2009

Operating
Margin

2010

2011

2012

2013

3.10%

25.90%

0.57%

0.78%

0.58%

12.40%

8.80%

-1%

4.85%

-2.30%

Total Margin

14%

8.70%

-1.10%

5%

-2.50%

Return on
Total Assets

11.60%

7.50%

-0.80%

3.97%

-1.80%

Return on
Net Assets

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5- Year Trends in Operating
Margin
Operating Margin
28

25.9

24
20
16

Operating Margin

12
8
4
0

3.1
0.57

0.78

0.58

2009.0 2010.0 2011.0 2012.0 2013.0

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5- Year Trend in Program
Expense Ratio
Program Expense Ratio
70
68
66

Program Expense
Ratio

64
62
60
58

2009.0 2010.0 2011.0 2012.0 2013.0

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5- Year Trends in Advertising
and Pledges
ADVERTISING

PLEDGES

350,000

350000

300,000

300000

250,000

250000

200,000

200000

150,000

150000

100,000

100000

50,000

50000

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5- Year Trend in Average
Collection Period
Days
80
70
60
50

Days

40
30
20
10
0

2009.0

2010.0

2011.0

2012.0

2013.0

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Charity Care
A Five Year Trend
900000
800000
700000
600000
500000
Dollars

400000
300000
200000
100000
0

2009.0

2010.0

2011.0

2012.0

2013.0

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5-Year Trend of Cash on Hand
350
300
250
Cash
Available On
Hand

200
150
100
50
0

2009.0

2010.0

2011.0

2012.0

2013.0

Moving
Forward:
Recommendatio
ns

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Invest

We recommend that HRC continues to invest and

develop the StayWell Senior Center with its two area
partners and work to meet its goal of paying off the
remaining financial obligation to the center by the end
of 2014 as planned.

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Credit

We recommend that HRC continue to decrease its

credit risk.

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Analyze

We recommend analyzing pledges not only within the

context of the entire amount of funds receivable to
HRC, but on their own. Further, we recommend
separating pledges from individual donors and those
from large grant-making organizations so that the
statement of activities can be used to analyze the way
they handle pledges, and the way they handle billing.

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Look to the Future

The landscape the industry operates in is changing.

The aging population is increasing significantly as baby
boomers age. The Affordable Care act is bringing
systemic changes to how we categorize health care
versus long term services and support.

The End