Hcs 405 Week 2 Paper
Week 2 discussion questions
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 …show more content…
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 liabilities and its net worth (fund balance). This can be visualized as Assets- Liabilities- Net worth/ Fund balance. The statement of revenue and expense covers a point in time rather than one single date or point in time. The concepts shows that revenue, or inflow, less expenses , or outflow, result in an excess of revenue to expenses if the year has been good, or an excess of expenses over revenue resulting in a loss if the year has been bad, The formula for a condenses statement of revenue and expense would be: operating revenue- operating expenses=operating income. A statement of changes in fund balance/net worth is linked to the previous financial reports. The excess of revenue flows back into equity or fund balance through the statement of fund balance/ net worth. The statement of cash flows deals a lot with accrual basis accounting. For example, Depreciation is recognized within each year as an expense, but it does not represent a cash expense. This is a concept that now enters into the statement of cash flows. The fourth major report—the statement of cash flows—interlocks with the other three major reports. (Baker & Baker,
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 …show more content…
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 liabilities and its net worth (fund balance). This can be visualized as Assets- Liabilities- Net worth/ Fund balance. The statement of revenue and expense covers a point in time rather than one single date or point in time. The concepts shows that revenue, or inflow, less expenses , or outflow, result in an excess of revenue to expenses if the year has been good, or an excess of expenses over revenue resulting in a loss if the year has been bad, The formula for a condenses statement of revenue and expense would be: operating revenue- operating expenses=operating income. A statement of changes in fund balance/net worth is linked to the previous financial reports. The excess of revenue flows back into equity or fund balance through the statement of fund balance/ net worth. The statement of cash flows deals a lot with accrual basis accounting. For example, Depreciation is recognized within each year as an expense, but it does not represent a cash expense. This is a concept that now enters into the statement of cash flows. The fourth major report—the statement of cash flows—interlocks with the other three major reports. (Baker & Baker,