Building an Annual Report for a Health Care Organization

by Chirantan Basu
Annual reports are informational and promotional tools.

Annual reports are informational and promotional tools.

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Annual reports for small or large health care organizations summarize achievements and financial results for the most recent 12-month period and provide expectations about the future. The target audience for these reports is the stakeholders, including shareholders for publicly traded companies, doctors, patients and equipment suppliers. Nonprofit health care organizations have additional stakeholders, such as donors, volunteers and community organizations.

Mission Statement

The mission statement is usually on the first page of the report, just after the table of contents. The overall mission of a health care organization is to provide patient care while striving to meet shareholders' profit expectations. The mission of a small outpatient clinic could be to provide timely diagnostic and first-aid services, while the mission of a large hospital could be to provide comprehensive clinical and diagnostic services and serve as an affiliated teaching hospital for local universities.

Cover Letter

Annual reports typically contain cover letters from senior management. This brief letter should be part executive summary and part motivational statement. It should summarize the main achievements, such as providing quality patient care and achieving positive cash flow. It should also thank employees for their contributions and ask for their continued dedication in the years ahead.


Health care organizations should highlight a few strategic achievements in their annual reports. For example, a report from a small hospital can point out the impact it has had on the health of local seniors, while a report for a private medical center can highlight its state-of-the-art diagnostic equipment and its doctors' research work with local medical schools.


Health care businesses should summarize their assets and liabilities on the balance sheet, and their revenues and expenses on the income statement. Revenue sources may include insurance reimbursements for patient care, fees for diagnostic services and research grants from public and private funding organizations. Salaries for doctors and nurses usually make up most of the expenses. There should be a brief explanation of significant changes from the previous annual report, such as increased salaries for new nurses or additional cash outlays for upgrading diagnostic equipment. Publicly traded health care companies should provide additional information, such as a statement of cash flow, detailed management analysis and an auditor's report.

Management and Board

The names and brief biographies of senior management officers and board members are usually near the end of an annual report. Health care organizations may also provide the names and credentials of senior doctors, grouped by specialty.


The last few pages typically contain administrative details, such as locations, hours of operation and contact information. A fact sheet containing such details as the number of doctors, nurses and patients served could be on the back of either the front or back cover of an annual report.

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