Managerial Accounting : Financial Data For Internal Process

Effective financial management is the basis of thriving health care organizations. Organizations must make good investment decisions based on objective analysis (Healthcare Financial Management Association [HFMA], 2005). Integration of financial management principles provides decision makers with guidance to make capital decisions maximize mission-based benefits at effective costs (HFMA, 2005). An operating budget is the statement of profit and loss for the entire organization. Various health care entities prepare operating budget for the following year for discussion and approval by top management (Academic Writing Tips, 2011). At the end of the year, departmental managers provide an account for the previous year’s

In this paper I have defined accrual and cash basis accounting. Also, I have answered the following questions: Explain the difference between the accrual basis of accounting and the cash basis of accounting. What are the major reasons for using accrual accounting? What are the purpose of a journal and a ledger? Give an example of a contra-asset, and explain how it is recorded on the ledger as a transaction. Explain what a “prepaid expense” is and how it is recorded on the ledger as a transaction. What are the major differences in recording transactions for a for-profit organization versus a not-for-profit, or are there any? List and record each transaction

The revenue cycle and reimbursements can be interrelated by the fact that sale of medicines generates revenue and reimbursement will affect the stock. The delivery of services to patient are also a part of reimbursements and revenue cycle. Since this facility primary financial resource relies on Medicare and Medicaid reimbursement. Quality of services seems to need improvements as better services to patients

If a daily cash budget is required, some additional assumptions about volume and collections are required. More specifically, it should be assumed that the clinic operates 7 days a week, that the patient volume is more or less constant throughout the month, so the daily billings forecast will be 1/(# of days in the month) multiplied by the billings forecast for that month and that the daily billings follow the 20%, 20%, 60% collection breakdown based on monthly billings. Furthermore, it should be presumed that the patient payments occur on the day of billing and “early” payers are assumed to pay 30 days after billing, and “late” payers are

1.The Days Receivables increase, again effectively removing millions in cash from the facility and leaving it in the hands of the payers. Due to the accounting method used at the hospital (Provision for Doubtful Accounts is shown as an “expense” and does not directly reduce “Net Patient Revenue”), the effect of the $4,224 audit adjustment was not as apparent in this ratio.

In order to insure each staff member was obtaining their individual and team goals, each member was given their own business (Souza). The tools in which the PFS were given provided them with the tools to prioritize and automate account work lists, sort accounts in various ways and see at a glance their ranking with their work group and office-wide. Managers were given their own dashboard and tools which able them to use query all aspects of receivables for trending purposes and identify problem areas, drill down to the patient account level, monitor revenue, payments, adjustments, receivables, and days for periods from the previous day and week to the previous 18 months, calculate average daily revenue by day and 30-day period, assess their performance for the month to date, and estimate likely results at the month end, view all receivables or select any segment for quick analysis, and generate timely reports on demand, including aging analysis, A/R stratification, discharged not final billed (DNFB) analysis, credit balance analysis, and analysis of problem payers. Finally, a denials management component was implemented in late summer, which will allow registration staff to go online at the end of the year (Souza).

I had a difficult time deciding on the organizational structure of Accounting and Finance without understanding the full scope of this department but I decided on three additional positions set to include: another Receivable Clerk, another Payable Clerk, and a second Financial Analyst. The Analysts will split the tasks of forecasting, budgeting, trends, data analytics, cost analysis, and organizational data requests. The analysts will assist with

The overall process of recording and processing financial events in a business is known as the accounting cycle. The collective process includes ten different steps that begin with analyzing and recording transactions and ending with post-closing and trial balance is prepared. Through this paper it will be explained all the steps with examples of how the steps are implemented in real life business situations.

|Selling Price per|Year 1 Sales Units |Year 1 Year End Stock units |Year 2 Unit Sales |Sales Revenue Year 1 |

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.

Benchmarking A/R objectives isn’t as difficult as many medical collections teams think, if you approach the task with the proper tools and vision. Your accounts receivable assets are a living, breathing organism that is constantly evolving. Every transaction throughout the day increases or decreases the distance to the imaginary finish line, that magic number your accountant establishes as an acceptable outstanding balance.

Of my many medical office manager hats that I wear, accounts receivable management is a key responsibility and I would agree that these four metrics are noteworthy for the success of any practice. To gain insight into the health of the practice’s patient receivables, the article is straight forward about examining patient collections data and incorporating the four key measures. As I continue with my degree in Supervision and Management in Health Management I continuously gain knowledge with each class. As with the case of this assignment I believe that practices should continuously monitor these key measures, especially in light of how the insurance industry has shifted financial liability to the

Accounts receivable reflects a balance of how much money is owed to the clinic. A summary of accounts receivable can reflect any outstanding balances on a patient account and can be helpful information to the clinic, especially if a patient’s account is sent to a collection agency. Other money owed to the clinic in the form of rent, royalties, and interest should be tracked and documented in a separate area from accounts receivable. Accounts payable reflects the amount of money that is owed to others, such as overpayments due to patients and vendor invoices or statements. Business invoices or statements should be placed in a specific spot according to office protocol until each bill is paid and documented accordingly.

For instance, the concept of cost estimation which assists in estimating future expenditure as the expenditure depends on the cost of the respective activities can be applied in the setting of a budget which is simply an estimate and schedule of all costs required to be assigned to an activity. One can make an estimation of the resources required for an activity by applying the cost estimation techniques. Since there are limiting factors to each activity such as scarcity of resources for activities, the concept of constraints can be applied together with the concept of cost volume profit analysis to ensure that maximum benefits are driven from the scarce resources and the number of activities that are available. This facilitates the allocation of resources that most equitable and profitable. The theory of constraints is also applicable in the process of setting up budgets. In setting up budget one considers the amount of resources that are available and cannot therefore set a budget plan that exceeds the amount of resources that are available. This implies that the budget is constrained by the amount of

A management accounting system collects accounting information and converts the information to an analysis report in order to help managers make correct decisions and let stakeholders fully understand how the company runs. In another word, the main purpose of the management accounting system is assessing the company’s performance with the help of different measurements. Thus, management accounting system reform should be closely linked to performance measurement.