Hcs/405 Health Care Financial Accounting Essay
Financial Statements Review
The following paper will address the Patton-Fuller Community Hospitals financial statements including the differences between the audited and unaudited financial statements, the effect that revenue sources had on the financial reporting for the hospital and how the hospitals revenue and expenses were grouped for planning and control. When organizations report unaudited financials it is important to realize there may be changes in the audited financial reporting that may occur after an independent review by an outside accounting firm. Additionally it is also important to realize the effect revenue sources can have on financial reporting and the importance of grouping revenue and …show more content…
What is the Effect of Revenue Sources on Financial Reporting at the Hospital? Phyllis
The hospitals main source of revenue is from patients, the effect of the revenue sources on the financial reporting at Patton-Fuller Community Hospital center around the fact the hospital has entered into new third-party payment agreements which means in some instances the hospital will not get paid for the full amount of the services they have billed. Therefore, the net patient revue being reported is estimated. The hospital has a significant number of their patients who fall under Medicare and Medicaid as third party providers, which the hospital realizes as a significant risk as it relates to possible bad debt which is reported on the financial statement as doubtful accounts and patient account receivables (University of Phoenix, 2006).
How are the Hospital’s Revenues and Expenses Grouped for Planning and Control?
Financial budgeting is crucial in running an organization efficiently. For managers to