What are the largest expense categories incurred by health care service organizations?
In opinion, one of the biggest expenses for medical facilities is unpaid services. Costs occurred from patients that are unpaid privately or not fully reimbursed from insurance companies would be one of the biggest expenses incurred in health care services. Another expense that is high on the list of expenses for health care services would be equipment and personnel. Health care personal have high salaries as well as costs for additional training and tuition reimbursement if the health care facility participates in such programs.
Equipment also can cost in the tens of thousands of dollars to over a million to buy the equipment, depending on the equipment. Then there is the training for the personnel operating it, the maintenance on the equipment and anything else having to do with each specific piece. A medical facility has costs no matter what it is they do. The overhead costs, which includes the operating of the building, the salaries of the personnel in the building and anything that has to do with that account for much of the expenses incurred in health care facilities along with services rendered.
What are the titles and functions of the four financial statements usually included in an audited financial report?
The four basic financial statements include the balance sheet, the statement of revenue and expense, the statement of fund balance or net worth, and the statement of cash flows. The balance sheet records what an organization owes and what it is worth if for profit organization and uses fund balance rather than equity for nonprofit organizations. Like the name suggests the balance sheet balances finances in the organization. It is stated at a particular point in time. It displays the total of assets of the organization and the total of what the organization owes. That is its...