...Health Care Case Study: Financial Statements University of Phoenix Health Care Financial Accounting HCS/405 December 06, 2010 Health Care Case Study: Financial Statements This paper is a health care case study of financial statements for Patton-Fuller Community Hospital. This summary is a review of the annual report and financial statements and the differences between the audited and the unaudited statements. The financial ratios are examined to determine if there has been improvement from 2008 to 2009 and to explain the cause. This paper will also summarize the relationship between revenue sources and expenses and explain the effect of revenue sources on financial reporting. The summary will also determine how the hospital’s revenues and expenses are grouped for planning and control. Audited and Unaudited Financial Statements The balance sheets for the Patton-Fuller Community Hospital for the years of 2008 and 2009 appear to have a discrepancy of $1,000,000 in the patient accounts received. On the 2009 unaudited statement, there was $59,787,000 and on the audited there was $58,787,000 which accounts for the $1,000,000 difference. Additionally on the Statement of Revenue and Expense for years 2008 and 2009 there was a discrepancy of $1,000,000 in 2009. This discrepancy appeared on the provision for doubtful accounts. The unaudited report showed $13,797,000 and the audited shows $14,797,000 which accounts for the $1,000,000 difference. This makes the “net...
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...Financial Reporting and Ethical Standards Debra Castagnetta HCS/405 November 7, 2011 Todd Brown Financial Reporting Practices and Ethical Standard In health care finance keeping financial documents have become more detailed and the need for accuracy has increased and many guidelines have been established to ensure there are competencies, and ethical standards are upheld in financial management in health care organizations (Paul, 2008). The Four Elements of Financial Management Health care organizations and other organizations require an array of management actions to operate effectively (Baker & Baker, 2010). To accomplish these actions the four elements of financial management must take place. The financial manager must identifies the objectives and steps through planning, the financial manager must ensure that the organization follow the plan by using the controlling element, the financial manager must organize and direct by deciding how to use the resources of the organization, and provide daily supervision (Baker & Baker, 2010). In addition, the financial manager must make informed choice through the element of decision- making (Baker & Baker, 2010). The General Accepted Accounting Practices In order to have guidelines in the principles of accounting, it is a mandatory requirement that health care organizations and other organizations use the General Accepted Accounting Principles, also known as the GAAP (Paul, 2008). The General Accepted...
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...Natural Sciences HCS/405 Version 5 Health Care Financial Accounting Copyright © 2012, 2010, 2007, 2005, 2004, 2002, 1999 by University of Phoenix. All rights reserved. Course Description This course provides an understanding of the general principles of accounting applied in the health care environment. It includes an overview of sources of revenue for various health care entities. The fundamentals of financial planning, cost concepts, capital budgeting, and management analysis are applied in the health care environment. Issues surrounding the development and management of budgets are also examined. Policies Faculty and students will be held responsible for understanding and adhering to all policies contained within the following two documents: University policies: You must be logged into the student website to view this document. Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Baker, J. J., & Baker, R. W. (2011). Health care finance: Basic tools for nonfinancial managers (3rd ed.). Sudbury, MA: Jones & Bartlett Publishers. All electronic materials are available on the student website. Week One: Overview of Health Care Finance Details Objectives...
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...Health Care Case Study: Financial Statements Health Care Case Study: Financial Statements The paper is a health care case study on Patton-Fuller Community Hospital’s financial statements. The summary of the paper is a review on the annual report financial statements at Patton-Fuller Community Hospital. A discussion on how the audited and unedited financial statements differ. An explanation will be discussed on the financial ratios for the hospital improving. The relationship between revenue sources and expenses on Patton-Fuller’s financial performance will be discussed. The effect of revenue sources on financial reporting at the hospital will be discussed. The hospital’s revenues and expenses grouped for planning and controlling will be explained. Audited & Unaudited Financial Statement Differences The balance sheet for the Patton-Fuller Community Hospital for the years of 2009 and 2008 appear to have a differences or discrepancy of $1,000,000 in the patient accounts receivable. On the 2009 unaudited statement there was $59,787,000 and on the audited statement there was $58,787,000 which accounts for the $1,000,000 difference (Patton-Fuller Community Hospital, 2011). Additionally, on the Statement of Revenue and Expense for years 2009 and 2008 there was a discrepancy of $1,000,000 in 2009. The differences or discrepancy appeared on the provision for doubtful accounts. The unaudited report showed $13,797,000 and the audited report showed $14,797,000 which accounts for the...
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... | | |Finance for the Health Care Professional | Copyright © 2011, 2009, 2007 by University of Phoenix. All rights reserved. Course Description This course is designed as an introduction to the terminology, processes, functions, and financial reports commonly encountered in health care operations. This course introduces the concepts of basic managerial financial functions, such as budgeting, reimbursement methods, and the responsibilities of health care financial management. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must be logged into the student website to view this document. • Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Baker, J. J., & Baker, R. W. (2011). Health care finance: Basic tools for nonfinancial managers (3rd ed.). Sudbury, MA: Jones & Bartlett Publishers. All electronic materials are available on...
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...THE BBDE HEALTH CENTER: A CASE STUDY OF BUSINESS ETHICS EXECUTIVE SUMMARY: BBDE is a behavioral health service center founded by Rulan Wilson to serve the mental health needs in an urban western county. The center provides individual and group therapy, inpatient long-term care, psychiatric care and recreational therap. For 20 years, Rulan has been the director and Chief Executive Officer (CEO) of the growing health center. The center currently employs 100 full time employees and generates approximately $11 million in annual revenue. Revenue comes from state block grants (1/2), Medicaid (1/3) and the balance from county government, insurance, fees and small contracts. The Board of Directors (BoD) is a volunteer board with members from the local community (county commissioner and certified public accountant) as well as individuals with a mental/behavioral health background. The current board members have all served for more than 10 years. The BBDE accounting staff includes a Chief Financial Officer (CFO), controller and several clerks. The controller, Don Blake, had only been with the company three months at the time of the case study. Despite the title of controller, Don spends the majority of his time preparing Medicaid reports instead of focusing on supervising, planning, decision making, and implementing strategy. In Don’s short tenure with the organization, it has been brought to his attention that proper guidelines are not followed for travel expense reimbursements...
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...APPENDIX Checklists A Checklist A-1 Reviewing a Budget 1. Is this budget static (not adjusted for volume) or flexible (adjusted for volume during the year)? 2. Are the figures designated as fixed or variable? 3. Is the budget for a defined unit of authority? 4. Are the line items within the budget all expenses (and revenues, if applicable) that are controllable by the manager? 5. Is the format of the budget comparable with that of previous periods so that several reports over time can be compared if so desired? 6. Are actual and budget for the same period? 7. Are the figures annualized? 8. Test one line-item calculation. Is the math for the dollar difference computed correctly? Is the percentage properly computed based on a percentage of the budget figure? 333 334 APPENDIX A Checklists Checklist A-2 Building a Budget 1. What is the proposed volume for the new budget period? 2. What is the appropriate inflow (revenues) and outflow (cost of services delivered) relationship? 3. What will the appropriate dollar cost be? (Note: this question requires a series of assumptions about the nature of the operation for the new budget period.) 3a. Forecast service-related workload. 3b. Forecast non–service-related workload. 3c. Forecast special project workload if applicable. 3d. Coordinate assumptions for proportionate share of interdepartmental projects. 4. Will additional resources be available? 5. Will this budget accomplish the appropriate managerial objectives for...
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...taken what is not theirs to take. Some of those people intended to steal they just never thought they would get caught. Others were pulled into the original crime or some aspect of the cover-up and before they knew it they were labeled a co-conspirator. This study will examine the people behind the much publicized fraud scheme at HealthSouth. Some did not set out to commit white-collar crime but found themselves as defendants in criminal trials for fraud. In the HealthSouth case in observation, real life examples of people who were "just doing their job" but at some point crossed the line from law-abiding citizens to law-breaking villains. Seemingly small compromises in ethics and morality led to a full-scale commitment to fraud. Finally, we will conclude that nobody sets out in their career to end up in prison cleaning toilets and on the front page of the Wall Street Journal after they are arrested for fraud. At some point, though, many end up that way. A. Background of the Study The study all about the recent accounting scandal that were reported : “The HealthSouth Scandal of 2003” as the researcher has become interested in finding out what made some this issue to happen. B. Statement of the Problem This study all about the story of the recent accounting scandal that were reported: “The HealthSouth Scandal of 2003”. It seeks to answer the following questions: 1. How is...
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...Fresco Community Health Center Case Study Analysis Abstract Arroyo Fresco (AF) currently provides services through eleven clinics and four mobile service vans across western Arizona. The three counties that are served through AF provide high quality primary care and preventative services to demographic areas with diverse geography, culture, income, and other varying factors (“Arroyo Fresco,” 2006). The facility guides its decision making process for organizational strategies with the combination of FOCUS and SWOT analysis. This allows for a well-rounded check and balance system to manage and prepare for current and future strategies for short term and long term processes. The increase in financial demands, consumer expectations, partnerships and mergers, quality of care given, and health care reform restructuring have placed a lot of expectations on health care facilities (“Creating an ethical culture,” 2011). The organizational strategy proves to be an important structure in order to provide a clear definition on how AF can change over time in order to successfully deliver a strategy and action plan that will benefit the short term and long term projections within the company (“Executive Insight,” 2008). AF has an found areas to improve the job descriptions, relationships, and management processes (Miles, Snow, Meyer, and Coleman, 2013). The organization strives to establish a strategic set of goals that will monitor, advance, and demonstrate health care results within...
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...Ethical and Legal Issues in Nursing University of Phoenix Nursing 391 Ethical and Legal Issues in Nursing Marianne, the 79-year old woman who presented with a hemorrhagic stroke in a recent case study, brings up thought for ethical debate. Her outlook is poor, with or without surgery, and she has no advanced directive. Her husband and children cannot come to an agreement on whether life support should end or if all resuscitative measures should be attempted. The following paper will discuss how the American Nurse’s Association Code of Nursing Ethics would influence a final decision, how personal and societal values can influence ethical decision making, the fundamental legal aspects of each case study, and the legal responsibilities of nurses in the work setting. Regardless of any situation that may arise, every nurse has a set standard in place that must be followed. These are nonnegotiable, ethical standards, obligations and duties that every individual swears to when entering the nursing profession. These standards are all found within the American Nurses Association’s code of Nursing Ethics and Conduct. Whether dealing with patients and families during end of life decision making or dealing with nursing negligence within the court of law, the first provision in the code of ethics is the most imperative to remember. Nurses are always obligated to their patient’s best interest, therefore making them an unrelenting patient advocate. Many provisions are pointed...
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...States. The US now has around 5,000 community hospitals that facilitate to people in need of medical attention (American Hospital Association, 2014). The 5,000 hospitals are broken down into for-profit, not-for-profit, and governmental organizations. All of the hospitals have the common goal of quality care for patients but have a different financial structure. For-profit, nor-for-profit, and governmental agencies are the types of organizations that make up the health care system. For-profit hospitals make up a little over a 1,000 of the community hospitals around the United States (American Hospital Association, 2014). For-Profit hospitals are usually owned by a private or public investor. The profits that the hospitals make go to pay expenses, salaries, and also the shareholders. For-profit organizations have to give some of the profits to the shareholders in order for the company to remain viable within the market. For-profit hospitals have higher cost of health care services than other hospitals or organizations (Horwitz, 2013). For-profits have to raise the cost of services in order for a profit to be made and to bring additional income into the facility. The financial structure of a for-profit hospital starts with medical costs for each patient that is serviced. Then the billing and coding department will charge the patient and the insurance company for monies owed. The main goal of a for-profit hospital...
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...is important to comprehend the cause of the poor quality of care with reagrds to the previous assignment analysis conducted in project-1 and 2. This will be achieved through building on the quality management plan created using the three steps of the Schwart’s Cycle—Do, Check, and Act. It is also crucial to develop balanced scorecard specific to the improvement plan through the description of performance measurement tools. Four categories of measurement will be created; both clinical and financial as well as description and justification of each. For every group, three specific measures will be established together with their calculation with respect to performance measurement as well as an explanation of performance change if the analysis is done for the entire organization. Moreover, during the discussion, there is a need to cover issues to be considered in the implementation of program improvement, collection and analysis of data, and description of desired results of the quality improvement plan. PART I Through the use of Schwart’s cycle checklist, it is possible for one to solve the issue faced within Ever Event Hospital by utilization of ‘Do,’ ‘Check,’ and ‘Act’ categories (Kizer, 2008). Schewart‘s PDCA cycle is usually used while ensuring enhancement and coordination of effort for improvement in the different organization. Plan applying the Shewhart Cycle and choosing to evaluate the reduced health care services and performance of the employees, it is imperative to...
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...Unit 4 – Peel Memorial Hospital Case Study GB520 Strategic Human Resources Management Professor Andrew Klein May 28, 2013 Introduction Before the 1990s, government funding allowed Canadian health care facilities to provide excellent service and quality. Increasing health care costs changed government funding, requiring providers to be held accountable for more of the financially responsibility in the early 1990s. During the mid-1990s, hospitals and regional health authorities across Canada were under siege from funding restraints, mergers and forced closures. The healthcare industry focused on delivering high-quality patient care and aligning the key stakeholders to the newly created vision during this time frame. To evolve and to survive, Peel Memorial Hospital implemented the Balanced Scorecard performance management system and that is the focus of this case study. The value of and the benefits to be gained when best practices are successfully used from the corporate sector are also highlighted. History and Issues Peel Memorial Hospital in Brampton, Ontario lacked significant targets and tired Mission Statement that tried to be all things to all people (Harber, 1998). Internal surveys revealed that employees were unclear on the organization’s strategic direction and the linkage of various programs and initiatives undertaken. In 1994, Peel Memorial Hospital took on a comprehensive continuous quality improvement training program and was followed by a lot of improvement...
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...The managed care industry is growing rapidly across the country in every state. Chesapeake Health Plans is one of Virginia’s largest managed care organizations with more than 400,000 members in 15 counties (Gapenski, 2010). The facility covers different products such as HMO, PPO, and POS to accommodate the sick and elderly in the state of Virginia. With all the different financial issues going on with healthcare, Chesapeake has proven to be stable in past years with 85% of the financial business in HMO’s (Gapenski, 2010). As the case study states, premium revenue as well as enrollment increased within one year (2008-2009) of the start of business. When you look at Chesapeake’s financial statement you will find that their total assets were up by $13.6 million in 2009 which led the total margin ratio to be approximately 5.9% with the greatest competitor coming in at 5.8% and the state average at (3.9) (Gapenski, 2010). By using the current ratio formula, the current ratio for 2008 is 1.38 and 1.45 in 2009 which is above the upper quartile at 1.29. With Chesapeake’s administrative ratio cost at 13.2% 2008 and 13.6% in 2009 it wasn’t a big difference on their financial cost for administration but shows that the company may want to look at how they are managing their administration. Overall the company has done well with the administrative ratio cost because they are below most of the competitors except for WellLife. The company took more a loss with their Medical with a 2.2% difference...
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...Assignment: Case Study Directions Access the financial statements of Proctor & Gamble in Appendix 5B in the textbook to answer the questions found in Chapter 4’s Using Your Judgment-Financial Reporting Problem. Follow the instructions indicated in the case study. Provide answers for parts a-e. Submit this assignment to your instructor via the dropbox “LP3.2 Assignment: Case Study.” This assignment is worth 20 points and will be graded according to the following scoring guide. Rating Scale x Criteria = Total Points Scoring Guide (20 Points) | Rating Scale | 4 | Work meets or exceeds criterion at a high level of competence. | 3 | Work reflects an understanding of criterion with minor misunderstandings/misconceptions. | 2 | Criterion partially met, but one or more important concepts/skills are missing or flawed. | 1 | Work reflects an attempt to meet criterion, but significant misunderstandings/misconceptions are apparent. | 0 | Criterion not met or work is absent. | Criteria | 1. | Identified the type of use of income statement format used by P&G. | 2. | Stated P&G's primary revenue sources. | 3. | Computed P&G's gross profit for 2007-2009 and explained trends to gross profit and financial ratios. | 4. | Provided distinction between operating and non-operating revenue. | 5. | Utilized appropriate grammar, punctuation, and spelling. | Financial Reporting Problem Proctor & Gamble a) What type of income statement format does...
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