FROM MY PT SCHOOL NOTES · HEALTHCARE SYSTEMS · UNIT 3 · CHAPTER 12
Balance sheet and income statement
12 Balance sheet and income statement How can a clinic be profitable on paper but still struggle to pay bills?
Core ideas from class
- Balance sheet equation: assets = liabilities + equity. Cash, receivables and equipment are examples of assets; loans payable are liabilities, not expenses merely because the loan exists.
- Income statement: recognized revenue minus expenses yields a measure of income, but receivables may not yet be collected.
- A useful question is whether operating cash, accounts-receivable aging, denials or overhead are changing while visits remain stable.
Think like a PT
The clinic has a positive operating result but slow payer reimbursement. Why might a manager still need cash reserves?
Remember
Read all three perspectives—profitability, liquidity and obligations—rather than one headline number.
Historical source note: The case figures in the lecture are teaching examples, not contemporary industry benchmarks.
From my class sources: 3 Accounting For Physical Therapists income statements.pdf; 3 Accounting.pdf ⭐️ ⭐️. These are personal school notes with additional editorial context, not current legal advice, payer guidance, a coding manual, or a guaranteed reimbursement rule. Verify any current policy directly.
