Healthcare Profit and Loss Sheet

June 25, 2019

Healthcare setups run on a smaller scale need regular surveillance so that the profit or loss of the setup stays in sight. Keeping a log of the profit and loss dramatically helps improve the healthcare setup. It also helps expand the clinic and holistically improves the clinic’s status.

Healthcare organizations are mostly run on a larger budget, even if the setup is on a small scale. An annual summary of the expenses and the subsequent profits or losses gives an idea of the overall financial performance of healthcare organizations. This is particularly applicable, rather necessary, for the healthcare systems we term for-profit healthcare organizations.

What is a profit and loss sheet?

Before describing the profit and loss sheet template, we must know what it is in reality.

So, a profit and loss sheet is basically a statement that summarizes all the revenues for a specific duration of time in an organization. The healthcare profit and loss statement serves as the summary of all the costs, purchases, and profits incurred in a year, in a month, or any specified period. We can compare or relate to an income or bank statement to better understand the healthcare profit and loss sheet.

These sheets are used and saved as records, a source of information about the overall expenditures against the available budget. They are also used to determine a company’s ability to generate profits. We can foresee the company’s current ability and plan for further improvement in revenue-generating methods.

Healthcare profit and loss sheet template

Since we have learned the definition of the profit and loss sheet template, we will discuss the details mentioned in the sheet. A standard template will tell us what to expect from a healthcare profit and loss sheet template.
A complex number of rows and columns begins with the duration, time, or month we need to do the revenue. By saying this, we mean that the statement is organized in different columns and separated for each month.
We begin with the healthcare organization’s income. We mention its total revenue. In the first column of the sheet, we mention the monthly sales turnover, net sales, and other sources of income.
Next, we look into the expenditures for each month. Each month, manufacturing expenses, material consumed, equipment purchased, and other administrative costs are mentioned.
The total expenditures and incomes are summarized in the end. If any debt or balance remains, that is mentioned at the end of the report.
The concerned authorities usually sign this report to make it an official document.