The Methodist Hospitals, Inc.

The Methodist Hospitals, Inc.

Consolidated Financial Report December 31, 2017

The Methodist Hospitals, Inc.

Independent Auditor's Report Consolidated Financial Statements

Balance Sheet Statement of Operations Statement of Changes in Net Assets Statement of Cash Flows Notes to Consolidated Financial Statements

Contents

1

2 3 4 5 6-24

Independent Auditor's Report

To the Board of Directors The Methodist Hospitals, Inc.

We have audited the accompanying consolidated financial statements of The Methodist Hospitals, Inc. (the "Hospital"), which comprise the consolidated balance sheet as of December 31, 2017 and 2016 and the related consolidated statements of operations, changes in net assets, and cash flows for the years then ended, and the related notes to the consolidated financial statements. Management's Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of The Methodist Hospitals, Inc. as of December 31, 2017 and 2016 and the consolidated results of its operations, changes in net assets, and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

April 12, 2018

1

The Methodist Hospitals, Inc.

Consolidated Balance Sheet

December 31, 2017 and 2016

Current Assets Cash and cash equivalents Short-term investments (Note 6) Accounts receivable - Net (Note 3) Cost report settlements receivable (Note 4) Other current assets (Note 8)

Total current assets

Assets Limited as to Use (Note 6)

Property and Equipment - Net (Note 9)

Other Assets

Total assets

Assets

Liabilities and Net Assets

Current Liabilities Accounts payable Current portion of long-term debt (Note 11) Cost report settlements payable (Note 4) Accrued liabilities and other (Note 10)

Total current liabilities

Long-term Debt - Net of current portion (Note 11)

Other Liabilities (Note 12)

Total liabilities

Net Assets Unrestricted Temporarily restricted Permanently restricted

Total net assets

Total liabilities and net assets

2017

2016

$

612,061 $ 2,080,713

576,070

3,003,724

48,913,705

44,110,820

22,724,126

35,279,556

16,189,252

15,342,574

89,015,214 125,884,579

99,817,387 134,093,580

145,870,116 141,237,536

4,833,351

5,674,302

$ 365,603,260 $ 380,822,805

$ 11,292,470 $ 21,460,327

2,436,521

2,317,017

7,577,574

8,809,918

17,483,748

16,846,060

38,790,313

49,433,322

61,519,535

64,234,151

20,995,640

30,986,826

121,305,488 144,654,299

243,922,279 350,493 25,000

235,714,898 428,608 25,000

244,297,772 236,168,506

$ 365,603,260 $ 380,822,805

See notes to consolidated financial statements.

2

The Methodist Hospitals, Inc.

Consolidated Statement of Operations

Years Ended December 31, 2017 and 2016

Unrestricted Revenue, Gains, and Other Support Net patient service revenue Provision for bad debts

Net patient service revenue less provision for bad debts

Excess of fair value of assets acquired over consideration paid in acquisition of Advanced Imaging Center, LLC

Investment income (Note 6) Other operating revenue Medicaid disproportionate share revenue Net assets released from restrictions used for operations

Total unrestricted revenue, gains, and other support

Operating Expenses Salaries and wages Employee benefits and payroll taxes Supplies Outside services Professional and other liability costs Utilities Repairs and maintenance Medicaid assessment fee (Note 4) Depreciation and amortization Interest expense Other

Total operating expenses (Note 17)

Operating Income

Nonoperating Income

Excess of Revenue Over Expenses

Pension-related Changes Other than Net Periodic Cost (Note 15)

Increase in Unrestricted Net Assets

2017

2016

$ 310,939,690 $ 312,052,331 (20,384,296) (16,098,325)

290,555,394 295,954,006

1,947,592 16,214,524

4,954,056 52,277,548

201,179

366,150,293

7,261,553 5,035,140 51,899,484

85,619

360,235,802

152,262,553 37,537,681 61,364,096 46,278,663 3,032,767 6,989,957 10,019,352 13,881,669 18,855,286 3,470,054 4,336,987

148,178,574 35,789,468 61,365,200 44,199,383 3,047,672 6,776,840 8,359,122 11,970,565 19,132,347 3,582,259 6,886,884

358,029,065 349,288,314

8,121,228

10,947,488

32,083

35,000

8,153,311 54,070

10,982,488 (6,666,451)

$ 8,207,381 $ 4,316,037

See notes to consolidated financial statements.

3

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download