Hca.270 Week 2 Essay

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Appendix C - HCA/270 Health Care Finance | PART III - Grouping Expenses by Cost Center | Background: Cost centers are used in an organization to group expenses. For example, the patient registration department would be a cost center. All costs associated with operating the patient registration department would be grouped into this cost center. Items such as paper, copier rental, education and training for new employees, and computers used by the registration employees would be allocated to this cost center. | | Directions: The Ascension Health System’s rehabilitation center offers outpatient physical therapy, occupational health services, plus cardiac and pulmonary rehabilitation to get people back to a normal way of living.…show more content…
The revenue from operations is primarily received for services. MHS groups its revenue first by cost center. Within each cost center, the service revenue is then grouped by payer. | | Directions: For each situation, enter an X in the column that represents the correct revenue sources for the item. The ten situations are as follows: (1) Insured patient had in vitro fertilization performed. Services not covered under patient's insurance. (2) Patient admitted to emergency room via the county jail. The emergency room visit was billed to the jail. (3) Pathology tests performed and billed to employee’s insurance program. (4) Emergency room visits and subsquent admission billed to member's preferred plan

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