Financial Accounting > CASE STUDY > Unit 4 Case 2: Sooner Health Network (All)

Unit 4 Case 2: Sooner Health Network

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SOONER HEALTH NETWORK (the Network), which consists of five medical group practices, is a subsidiary of not-for-profit Sooner Health System (the System). The Network includes both primary care and spe ... cialty physicians, with an emphasis on obstetrics/gynecology, eldercare, and pediatrics. Prior to the founding of the Network, the five practices operated independently. The Network has three practice locations, each staffed with a mix of primary care and specialist physicians. Although the Network itself is only marginally profitable, it is an important contributor to the profitability of the System because it generates a large amount of revenues from referrals for both inpatient admissions and inpatient and outpatient ancillary services. In fact, each $1 of revenue generated within the Network is estimated to lead to $8 of inpatient and ancillary revenues to the System. By limiting the amount of ancillary services provided at the three Network locations, patients are forced (or at least encouraged) to use other System facilities for such services. [Show More]

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