Problem
A. How would you explain the three steps of financial analysis at the organizational level?
B. What is the purpose of creating a balance sheet? List the three general classifications of the balance sheet and possible categories under these classifications.
C. What is the purpose of the statement of operations? List the main classifications and the possible categories under the classifications.
D. What types of organizations use the statement of changes in net assets, and why?
E. What is the statement of cash flows? The statement is divided into three segments; list each category.
F. What are the four classifications of ratios on which the financial statement analysis focuses?
G. What are the operating indicators used to analyze the financial performance of an organization?
H. What must an annual report include to be considered a good report?
Tax Status of Healthcare Organizations
A. How would you explain the rationale for granting organizations tax-exempt status?
B. What are the benefits and the burdens of tax-exempt status for hospitals?
C. What are the steps necessary to qualify for tax-exempt status? [not covered in the book]
D. What are the bases of legislative, judicial, and IRS challenges to tax-exempt status?
E. Is the Affordable Care Act of 2010 being viewed as friend or foe to tax-exempt hospitals? Why?
F. Under the ACA, if more people are covered by insurance and fewer people need charity care, how will tax-exempt hospitals justify their tax-exempt status?