1. Discuss the relationship between the current ratio and the quick ratio.
2. Give three reasons the ratio of Days of Supplies in Inventory could be lower than the national average for an acute care hospital located in Chicago Illinois.
3. The capitalization ratio for GSU Hospital is 65% net assets to total assets. Is this a good ratio for this type of healthcare institution? Defend your answer.
4. The average age of the physical plant for GSU Hospital is 6.7 years. Is this a good statistic as compared to other similar hospitals in the United States? Why/Why not?
5. Calculate the Days of Revenue in Accounts Receivable given the following information for the year ended December 31, 2013: .
Gross patient accounts receivable $ 25,000,000
Gross patient service revenues $ 164,384,000
a. ___________ Days of Revenue in Gross Accounts Receivable
b. Is this a good ratio? Defend your answer.
6. GSU Medical Clinic plans to purchase a turn-key computer system to handle the medical records for the seven physician practice. What is a turn key system? Are there any disadvantages/advantages for purchasing such a system for a medical practice?
7. Should the GSU Nursing Home cafeteria maintain a change fund? Why/why not?
8. Describe at least three activities a hospital should employ to prevent fraud and abuse
9. ABC Hospital maintains its payroll checking account on an "imprest" basis. How much money should be in the checking account at the end of the month?
10. Define the term "upcoding" as it relates to patient account billing.
11. To whom should the position of Internal Auditor report to? Why?
12. Discuss at least three ways GSU Hospital can prevent fraud/theft from taking place in its storeroom.
13. Which department(s) should be in charge of the following functions? (Explain your answer)
a. Authorizing the payment of overtime pay.
b. Distributing payroll checks to employees.
c. Submitting payroll rate changes to the payroll computer system.
14. Discuss the physical safety and information security requirements for GSU Hospital's Data Center located in the basement of the main hospital.
15. As part of your academic practicum report, you are to analyze the last ten years' financial statements of GSU Hospital. The term "fund balance" shows up in the hospital's Balance Sheets. What is this "fund balance"?
16. At present GSU Hospital's Days of Expenses in Accounts Payable is 95 days. What operational problems could you expect to face given such a ratio? Give at least three examples
17. What is a "stale dated check"? How does one handle the disposition of such a problem?
18. Give at least one reason for using the LIFO method of inventory in valuing Pharmacy Drugs at GSU Hospital. Explain fully.
19. The Medicare auditor has arrived at your nursing home. She has requested access to three specific patients' detailed medical bills as well as the related patients' medical records. What is she looking for? Why?
20. Your Vice President of Finance states that the facility using a "sweep banking account". What is it? Why would you want to use it?
21. Who is eligible for Medicare? List three types of patients currently eligible to enroll in the Medicare Program. Be specific
22. You, a Medicare patient, were hospitalized for congestive heart failure on January 22, 2014. After being discharged January 28, 2014, you were again admitted to the same hospital suffering from renal failure on February 1, 2014. Describe the Part "A" deductibles and coinsurance, if any, you would be liable for on this second admission.
23. Based on question 22, you were discharged from the second admission on February 6, 2014 and admitted to the skilled nursing unit at GSU Nursing Home on the same day. Will Medicare pay for this nursing home care? Yes/No. Explain the rationale for your answer.
24. Based on question 23, you were discharged after 22 days in GSU Nursing Home. What would you, the patient, have to pay to GSU Nursing Home for your care? Provide the total dollar amount you would be liable for.
25. Does the federal government require states to offer home health services to adults enrolled in the state's Medicaid program? Yes/No
26. GSU insurance company is Medicare's Intermediary. What does this mean?
27. Calculate the physician's Medicare reimbursement and the amount the patient must pay under the following scenarios:
Given: Dr. Gellatly bills $120.00 for an intermediate office visit. The usual and
customary Medicare payment is $90.00. The patient's net taxable income for 2013 was $42,000. She filed a single person's federal income tax return.
a. Dr. Gellatly accepts Medicare assignment Medicare ____ Patient ____
b. Dr. Gellatly does not accept Medicare assignment Medicare ____ Patient ____
28. GSU Hospital received an invoice dated February 21, 2014 for $9,000.00.
The invoice total included $400.00 in sales taxes and $150.00 in freight costs.
The terms of the invoice were 2%10EOM.
a. If the hospital paid the bill on time, how much would be the discount amount?
b. When did the invoice have to be paid in order to earn the discount?
29. GSU Hospital received an invoice with terms stated FOB Shipping Point.
a. Who pays the freight costs?
b. When does title to the goods transfer to GSU Hospital?
30. How often does the Medicare program require hospitals to take the following physical inventories?
a. Supplies
b. Property, plant and equipment assets
31. Discuss how a hospital records the value of goods taken on consignment. For example, art work available for sale in the hospital's gift shop.
32. Your friend has made the following statements. Is she correct or wrong?
Defend your answers.
a. While your friend was visiting London England, she broke her leg. She said that Medicare would pay the bill.
b. "Medicare is going broke because of expensive nursing home and retirement home costs for the babyboomers."
c. "Medicaid is going broke because of all of those welfare moms and their kids."