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Chapter 14: Accounting for Healthcare Organizations
Terms in this set (33)
Qualifications for a hospital to be nonprofit
1. Receive significant contributions from providers who do not expect proportionate benefits in return
2. operate to provide goods and services but not as a profit
3. no owners
Nonprofit Hospital Sources of GAAP
Governmental Hospital Sources of GAAP
GASB Governmental Accounting Standards Board
AICPA Audit and Accounting Guide
How do nonprofit hospitals report net assets and changes in net assets?
Just like all nonprofits:
1. with donor restrictions
2. without donor restrictions
What are the basic financial statements for nonprofit hospitals? (4)
1. Balance Sheet
2. Statement of Operations
3. Statement of Changes in Equity
4. Statement of Cash Flows
How do governmental hospitals report their statements?
Same as nfp but they combine the statement of operations and the statement of changes in equity
What does the nonprofit statement of operations do?
Reports revenues and expenses by presenting only changes in net assets WITHOUT donor restrictions
includes a performance indicator
what does the nonprofit statement of change in net assets do?
reports changes in the two required net asset classifications as wel as changes in net assets for the hospital as a whole
what 3 categories of net position do governmental hospitals report on
net investment in capital assets, restricted net assets, and unrestricted net assets
What 3 basic financial statements do governmental hospitals use
statement of position, statement of revenues/expenses/changes in net position, and statement of cash flows
Different payment services a hospital provides
Private insurers: Health maintenance orgs (HMOs) and blue cross
Uninsured patients have 2 classifications
self-payers or charity care
how are services paid for that the third party payers establish with the hospital?
retrospectively-initial payments based on interim rates with final settlement amounts later
what is a contractual adjustment?
differences between a hospital's established rate an the amount actually paid by third parties
what is a capitation agreement?
when hospitals receive agreed-upon premium payments from third parties (HMOs)
what are capitation payments accounted for as?
NOT HOSPITAL SERVICE/PATIENT REVENUE
patient service revenue journal transaction at established rates
(D) patient AR
(C) patient service rev
calculation for transaction price
Hospital established rate
-implicit price concessions
what do you do with charity care?
who can report bad debt expense?
only nfp hospitals
who can report ADA
both nfp and governmental hospitals
how to record a retrospective third party settlement
(D) provision for contractual adjustments
(C) estimated third party payer settlements payable
how to record accounting for capitation premiums
(C) premium revenue
how to report nfp hospital cash contribution
(C) Contribution revenue-support w/wo restrictioj
contributions to governmental hospitals
accounted as voluntary nonexchange transaction at fair value if meeting all 4 criteria
4 elegibility requirements for a governmental hospital to have voluntary nonexchange transactions
1.required characteristics of recipient
2. time requirements
contribution of services to governmental hospitals
no gaap exists for volunteer work
reporting an interest in nfp hospital foundations
(D) interest in hospital foundation
(C) gains with or w/o donor restrictions-change in (net asset/interest)
adjusting an interest in an nfp hospital foundation
(D)cash restricted for capital acquisition
(C) interest in hospital foundation
how would a governmental hospital report a foundation?
report it as a component unit
how to report assets limited to use for nfps
(D) investments-board designated(type)
do both boards need a performance indicator?
yes! something along the lines of revenue/expenses (FASB) or operating income (GASB)
what to do with malpractice claims?
report if probable and reasonably estimable-same rules as normal accounting
THIS SET IS OFTEN IN FOLDERS WITH...
Gov Acct 365 Ch11
Gov Acct 365 Ch13
Chapter 13: Accounting for Non-Profit Organizations
Chapter 10 - Not for Profit
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