Discuss the below:
Health Services Finance
1. A statement that reports inflows and outflows of cash during the accounting period in the categories of operations, investing, and financing, is called a(an):
2. Which method(s) of financial reporting does (do) not recognize the impact of changes in purchasing power?
3. Which of the following is the BEST example of a financial metric?
4. What is/(are) the primary determinant(s) of firm value?
5. How are revenues and expenses defined under accrual accounting?
6. What is an audit (in the context of financial accounting)?
7. The HC method, which uses unadjusted historical costs, does not take into account depreciation expenses, purchasing power, and unrealized gains in replacement value. Despite these weaknesses as a financial reporting method, the HC method is used more frequently for accounting purposes than other methods, such as the HC-GPL, CV, and CV-GPL methods. Why is this so?
8. Define and describe the purpose of fund accounting (now called net assets).
1.
From a hospital's perspective, what is most likely to be the highest risk arrangement with a payer?
2. SKF Primary Care Clinic is deciding whether to purchase MRI equipment that would enable it to perform MRI imaging services in-house rather than sending its patients to its competitor's hospital three miles away. From a financial position, if SKF were to make its decision without using net present value analysis, the clinic would need to know (or at least reasonably estimate) which of the following information?
3. Assume that the clinic used the price that they need to exactly break even at 10,000 shots. Fewer people than expected showed up and purchased the flu shot. The clinic would:
4. Which of the following is the first step in any budgetary process?
5. David Jones, the new administrator for a surgical clinic, was trying to determine how to allocate his indirect expenses. His staff was complaining that the current method of taking a percentage of revenues was unfair. He decided to try to allocate utilities based on square footage of each department, administration based on direct costs, and laboratory based on tests. Use the information in the chart below to answer the question.
6. Your hospital has been approached by a major HMO to perform all their MS-DRG 470 cases (major joint procedures). They have offered a flat price of $10,000 per case. You have reviewed your charges for MS-DRG 470 during the last year and found the following profile:
7. How are costs classified?
1.
Coordination of benefits refers to:
2. A withhold is a feature for payment to health care provider that:
3. A medical group includes a provision in its contract with an HMO to receive larger PMPM payments if the HMO members are chronically ill. This type of provision is referred to as a:
4. Suppose that AT&T had made an offer to acquire Merck Pharmaceuticals. Ignoring potential antitrust problems, this merger would be classified as a:
5. An HMO has a Point of Service (POS) option for its members, but will pay only 80 percent of approved charges. If a member goes out of network for a medical procedure with a charge of $2,000, of which $1,200 is approved, how much must the member pay?
6. An uninsured patient receives services with charges of $5,000 from a hospital. The hospital staff bills the patient $1,000 and records $4,000 as charity care. If the hospital's ratio of cost to charges is 50%, what amount would the hospital recognize as charity care in Schedule H of IRS Form 990?
7. Why is tax-exempt financing cited as a benefit received by not-for-profit healthcare providers?