Hcs/405 Week 2

You have been asked by a health care magazine to write a series of articles focusing on health care financial concepts. The articles will be included in five consecutive issues and will be geared towards readers with little knowledge of finance. You must ensure that the articles are both informative and engaging to your audience. You must also ensure that your articles relate financial principles to the health care industry.

HC1: Public health is here to assist in the prevention of disease, promote health and continually adding longevity to life (WHO, 2015). It is broken down into a few different functions. There are assessments and monitoring of different health communities and the populations which are at risk (WHO, 2015). Second, would be how policies are designed to solve certain problems on the local and national levels (WHO, 2015). And last, would be to make sure that all populations have adequate access to health care and that it is cost effective (WHO, 2015). Quality improvements is increasing its approach to get maximize services that will be effective while also minimizing the costs (HHS, 2011). When making improvements one must first identify strategies and characteristics that are essential to the concern (HHS, 2011). Once that is completed, apply the quality improvements to produce a measurable improvement (HHS, 2011). This will show whether there were improvements in efficiency, effectiveness as well as performance and outcomes (HHS, 2011). Another improvement would be making the role that environmental health has to give more of an impact in public

The four phases of a disaster plan will consist of Preparedness Efforts, Mitigation Measures, Response Phase, and the Recovery Function. This is where I will describe each part in its own section of this essay.

After reading the following, “From bottom to top: How one provider retooled its collections” (Souza &McCarty, 2007). The article sheds light on the fact that Sutter Health is a non-profit public based- healthcare system. Not to mention it is based in Sacramento, in the northern part of California. This type of healthcare systems services patients and families where the system providers have joined force and share their expertise that have helped progress and advance the quality of healthcare. According to Souza & McCarty, they reference the fact that the non-profit network has initiated the interface having the intentions of developing revenue collection for healthcare facilities that can collect from self-paying patients. (2007, p.68). However, with a traditional payment system it does have its disadvantages meaning there are delays in the payment process of the effective revenue system in healthcare facilities. Mainly, is the limitations of the processing because of the result of not having the accessibility of precise information on accounts. Souza & McCarty further discuss that fact that Patient Financial Services staff are not in a position to have the real-time information that aids in processing the financial and operational indicators of the healthcare facility. (2007, p. 70). There were also unproductive and incompetent performance measures in the

Internal audit will discover flaws in Bryant’s Hospital revenue cycle process. One problem, is the untimely of processing claims for patients and third party billers. This issue will not only delay payment which the hospital needs, but it will increase their Account receivable account, due to aged accounts.

“An income statement measures the performance over some period of time, usually a quarter or a year”, states the authors of Essentials of Corporate Finance. (Ross, Westerfield, Bradford 2014, p. 27). There are three aspects of an income statement that a financial manager needs to keep in mind when analyzing the numbers; GAAP, cash versus noncash item, and time and costs. GAAP will show revenue when it accrues. According to the authors of Essentials of Corporate Finance, “The general rule is to recognize revenue when the earnings process is virtually complete and the value of an exchanges of goods or services is known or can be reliably determined” (Ross, Westerfield, Bradford 2014 p. 28). As some production costs of items produced are made on credit, the revenue on that item will not be recognized until the sale of that item occurs; any other costs incurred in assembling that product will also not be recognized until the time of its sale (Ross, Westerfield, Bradford 2014 p.28- 29). With this situation occurring, the income statement might not be able to represent all the

The accounting department of CAM is instructed by the CFO to recognize the revenue only after the collection of cash, due to uncertainty of collection, which is reasonable and does not show any management intention to deliberately choose the method that results lower net income. Although this method complies with revenue recognition criteria under IFRS, it substantially postpones the revenue recognition process, as well as understates the net income as it only accounts for cash received. Under this approach, the occurrence of expense does not match with the related revenue, thus misrepresents the company’s profitability and income statement.

Income measurement is typically described as a two-step process consisting of revenue recognition followed by matching of expenses to the recognized revenue. The criteria which guides the recognition of revenue clearly plays a critical role in determining the outcome of the accounting process, and it is not surprising recognition criteria are the focus of continuing debate (Antle & Demski, 1989).

• A customer comes into your repair shop and needs front and back brakes and rotors. Under the cash method, you do the repairs and the customer hands you a credit card (or check or even a stack of cash). You record it into your point of sale system and the money is recorded as revenue. But if the customer has an account with your business and doesn’t hand you the money until the beginning of the next month the transaction will not be recorded as revenue until

In accrual accounting, we recognize revenues when they're earned and expenses when they're incurred. When you immediately record the expenses, you are matching them with the revenue those expenses helped produce. Take for example, materials and labor are the expenses incurred to provide the services reflected in the revenue they are matched against.

Although accrual accounting is most commonly used, it is often argued which of accrual accounting or cash flow accounting is most appropriately used in a firm’s financial statements. The difference between the two methods is when expenses and revenues are realised on the financial statements, thus measuring a firm’s performance differently. This text will argue the advantages and drawbacks of respective accounting method, and further discuss which accounting method provides potential investors with the most relevant and timely financial information.

The Entire Case Study is due Sunday at Midnight Mountain time at the end of Week 3.

2. In a service enterprise, revenue is considered to be earned at the time the service is performed.

Revenue recognition is an area that concerns managers, regulators and auditors. For managers, selecting the wrong accounting method or one that may be challenged can damage reputation and credibility. Those possibilities have been becoming more real, given revenue recognition and classification decisions are a largely subjective matter. Thus, IFRS 15 ‘Revenue from Contracts’ has been devised to help combat this issue. It states that for all contracts with customers, revenue will be recognised when control of the promised good or service is transferred to customer, and not when risks and rewards pass as was previously the case.

Cash receipts handled by the purchasing department as well as cheques to settle vendor allowances