Great Deal! Get Instant $10 FREE in Account on First Order + 10% Cashback on Every Order Order Now

Government and Not for profit Accounting – Chapter 14 My Book Details are: To answer these questions, Book Link is below: https://reader.yuzu.com/#/ Login – XXXXXXXXXX XXXXXXXXXXPassword : Newyork2018...

1 answer below »
Government and Not for profit Accounting – Chapter 14
My Book Details are:
To answer these questions, Book Link is below:
https:
eader.yuzu.com/#
Login – XXXXXXXXXX XXXXXXXXXXPassword : Newyork2018
Part 1
1. Account for revenues, including for fee-for-service revenues and capitation revenues (pages 634 – 636)
2. Explain why bad debts must be distinguished from charity care and describe how to account for them (pages 636 – 637)
3. Summarize the issues presented by ‘retrospective’ insurance premiums (page 638)
Answered Same Day Jul 31, 2020

Solution

Preeta answered on Aug 01 2020
139 Votes
1.     Account for revenues, including for fee-for-service revenues and capitation revenues.
Ans:    In most of the health care organizations, patients have to pay only a very small amount and rest of the amount generally come from third party donations like from Medicare, Medicaid, Blue Cross and other private insurance companies. Medicare categorized groups based on diagnosis and pays definite rate to each group. But hospital is not sure about the amount of patient’s bill to be paid by the patient and amount that will be reimbursed by the hospital. In retrospective payment system, payments are made on the basis of total costs of a certain period. Although interim payments are made by third parties yet the final amount is difficult to determine. Even the amount of bills to be paid for the patients who are not insured is unsure. AICPA guides to record fee for service revenues on accrual basis at the ascertained rate of the health care entity whether it...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here