Discuss the below in detail:
Q1. What do you mean by financial management of health care organizations? Identify key elements that are driving changes in health care delivery.
Q2. The following are account balances (in thousands) for ALLAYAKA Health Plan. Prepare a balance sheet and statement of operations for the year ended December 31, 2012.
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Net property and equipment
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$ 2,000
|
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Accounts receivable
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$3,000
|
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Medical claims payable
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$37,000
|
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Patient service revenue (net of contractuals)
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$ 950,000
|
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Supply expense
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$ 255,000
|
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Net assets released from restriction for operations
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$ 45, 000
|
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Depreciation expense
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$ 35,000
|
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Labor expense
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$300,000
|
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Provision for bad debts
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$12,000
|
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Net Assets
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$61,500
|
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Cash & cash equivalents
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$97,000
|
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Long-term debt
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$3,500
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Q3. What are the major differences in recording transactions for a for-profit organization versus a not-for-profit one, or are there any?
Q4. What is the difference between the operating margin ratio and a return on total assets ratio? What is the difference between operating revenue per adjusted discharge ratio and operating expense per adjusted discharge ratio? To what categories of ratios do these ratios belong?