Parallon's Website Summary

Parallon’s website includes key metrics and statistics as related to net revenue. Parallon details that 97% of accounts were resolved which increased net collections by 72% in a specific instance (“Case Study,” 2016). Parallon specifies that they provide technology, software, staffing, and analysis services to help customers meet their goals (“Solution,” 2016). Parallon lists how they provide services such as bad debt recovery in detailed steps so the consumer is informed (“How it works,” 2016). Parallon presents case studies and success stories of clients as testimonials to their services (“Insights,” 2016). Parallon does not publish average accounts receivable days on their website due to the amount of clients they service and the differences.

HCA owns 161 hospitals and 114 ambulatory surgery centers in 20 states and the United Kingdom (Herman, 2013). Community Health Systems owns 206 hospitals in 29 states, making them the largest for-profit chain in the world in terms of facilities (Herman, 2014). Tenet Healthcare owns 79 hospitals and 157 ambulatory surgery centers (Herman, 2013). Although Community Health Systems is larger in number of facilities, their earnings still trail those of HCA. Community Health Systems reports admissions growth of 0.3% annually, where HCA reports admissions growth of 2.6% annually (Boyer,

In 2015, HCA reported net revenues of $39.68 billion, gross profits of $33.04 billion, and earnings per share of 5.56 (“HCA Income Statement,” 2016). In 2015, Tenet reported net revenues of $18.6 billion, gross profits of $6.66 billion, and earnings per share of 2.05 (“Tenet Income Statement,” 2016). Net revenues are earnings after discounts, losses, and returns (“Net Revenue,” n.d.). Net revenue is a direct indication of proper accounts receivable handling and timely follow-up. Earnings indicate that HCA’s accounts receivable practices are more efficient than other competitors. Gross profit is an indication of earnings per item sold, or total revenue minus cost of goods sold (“Gross Profit,” n.d.). Higher gross profits indicate more efficient use of resources, supplies, and labor. Earnings per share indicate profits as distributed among each piece of stock, and refer to an organization’s profitability measures (“EPS,” n.d.). Community Health Systems’ earnings per share are higher than all other healthcare organizations listed, at 63.64 (“CHS Income Statement,” 2016). This indicates that investors are willing to pay more for share within the organization. This is usually an indication of high earnings, or higher returns. Community Health Systems’ rapid growth is a contributor to the increase in earnings per