For-Profit Health Care Organizations: Case Study

List several efforts that have been enacted by payors to control costs. The following are efforts that have been made by payers to control costs: Reduce avoidable, ineffective and duplicate use of services - including technology that does not improve patient care - and encourage clinically effective care based on comparative effectiveness research and implementation of IT, To pay appropriately and foster the adoption of innovative models of health care delivery, To ensure accurate pricing of services, To ensure an appropriate physician workforce specialty mix, To reduce administrative costs, Reduce costs from medical malpractice and defensive medicine
Explain the ramifications of allowing/disallowing an individual to be able to sue his or …show more content…
In profit care organizations each of the financial statements commonly called: Balance sheet, Income statement, Statement of retained earnings, and Statement of cash flow.
The following questions relate to the statement of operations of not for-profit health care organizations. What is the analogous for-profit statement called? What are the main sections of the statement of operations? Statement of operations is analogous to for-profit income statements. The main sections of statement of operations are: Total Revenue, Cost of goods sold, Operating expenses, Operating Income, Earning before Tax, Taxes, Net Income, and EPS
What are revenues, gains, and other support? What are expenses and losses? Funds released from restricted net assets to unrestricted net assets are presented in what section of the statement of revenue, expenses and other activities? Revenues are from providing medical and health related services and other patient services. Expenses are salaries, purchases of services and employee benefits. The organization serves to insured and uninsured and any cost arising out of it is bore by the entity …show more content…
The purpose of this statement is to answers the question of where did the cash come from and where it has gone. In the financial statement the explanatory statement will be available in the Notes to Cash Flow Statement. This information provides details and explanation of certain key aspects of the cash flow statement. Purchase of Long Term Investments can be located in the Cash Flow Statement under the section Investing Activity. Under the accrual basis of accounting income and expenses are accounted when the get due irrespective of the fact whether they are received or not , whereas under cash basis of accounting income and expenses are accounted or taken into account in the year in which they are received irrespective of the fact in which year the same has got