ACCT GOV.+NFP ENTITIES LOOSELEAF W/CONN.
18th Edition
ISBN: 9781260949766
Author: RECK
Publisher: MCG
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Question
Chapter 16, Problem 17.6EP
To determine
State the reason under which the health care organizations are motivated to track the actual cost of the services.
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1. Cost shifting occurs when a provider responds to low reimbursement rates by public payers (e.g., Medicare or Medicaid) or uncompensated care provided to the uninsured by charging private payers—insurers, managed care companies, or private individuals—more. Essentially, hospitals and physicians try to compensate for providing care below costs to some patients by raising their charges to others. To be able to do so, they would have had to not be fully exploiting their market power in the first place. What is a classic example of this in the healthcare marketplace and how would you go about developing a remedy to reduce the unfair burden cost shifting places on certain payers?
1. Briefly explain The Information Flow.
2. How can social media help a hospital manage the patient experience?
3. Briefly explain the difference between short-term and long-term assets.
4. What are the major differences in Government Sourcesand Managed Care Source?
5. Explain the two types of disbursements for services.
6. What is the difference between direct and indirect costs? Explain.
Which is Idemenity Plan and which is Managed Care Plan?
Insureds create contract with an insurer who does not provide health care services
The higher the deductible, the lower the premium
Insured receive health care services from a designated group of providers
May not even involve an insurance company
No annual deduction is incurred, but a small co-payment may be required
I most value the freedom of choice and am willing to pay for it.
Cost is my most important consideration.
I’d rather have the flexibility of either having the insurance company reimburse me or directly paying the health care provider.
Chapter 16 Solutions
ACCT GOV.+NFP ENTITIES LOOSELEAF W/CONN.
Ch. 16 - Prob. 1QCh. 16 - Prob. 2QCh. 16 - Prob. 3QCh. 16 - Prob. 4QCh. 16 - What is an example of a performance indicator and...Ch. 16 - Prob. 6QCh. 16 - Prob. 7QCh. 16 - What are assets limited as to use and how do they...Ch. 16 - Prob. 9QCh. 16 - Prob. 10Q
Ch. 16 - Prob. 11QCh. 16 - Prob. 12CCh. 16 - Prob. 17.1EPCh. 16 - Prob. 17.2EPCh. 16 - Which of the following is a true statement...Ch. 16 - Prob. 17.4EPCh. 16 - Prob. 17.5EPCh. 16 - Prob. 17.6EPCh. 16 - Prob. 17.7EPCh. 16 - Wellness Psychiatric Clinic received a large...Ch. 16 - Prob. 17.9EPCh. 16 - Prob. 17.10EPCh. 16 - Prob. 18EPCh. 16 - Prob. 19EPCh. 16 - The Kyle Sports Medicine facility is a...Ch. 16 - Prob. 21EPCh. 16 - Prob. 22EPCh. 16 - Prob. 23EPCh. 16 - Prob. 24EPCh. 16 - Prob. 25EP
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- Which of the following statements is true regarding postretirement health care benefit obligations and their accounting? a. The estimates involved in accounting for such benefits are generally less complex than those associated with accounting for pensions. b. Such benefits are usually provided as part of a defined contribution postretirement benefits plan. c. Employers usually offer multiple varying tiers of coverage based on beneficiaries’ length of service with the company. d. The gross cost of providing such coverage is commonly offset by government-provided health insurance.arrow_forwardCost Allocation in Health Care Cost allocation is often the centerpiece of conflict that is resolved product line that is of interest to the plaintiff. This is particularly an issue when a company produces in court cases. The litigation usually involves the dispute over how costs are allocated to a pred product line that is of interest to the plaintiff. This is particularly an issue when a company produo some products or services for a price-competitive market while other products or services arees duced for a governmental unit on a cost-plus or reimbursement basis. Nursing Care Inc., or NCI, operates both a small nursing home and retirement home. Thre i single kitchen used to provide meals to both the nursing home and retirement home, meaning lab costs and utilities costs of the kitchen are shared by the two homes. There is also a centralized cles ing department that provides the cleaning services for both homes as well as the kitchen. The nursine home serves only indigent patients…arrow_forwardWhat stakeholders are most interested in the financial condition of a health care business? Why is this important? What have generally accepted accounting principles (GAAP)? What is the purpose of GAAP? Explain the difference between cash accounting and accrual accounting? Why is this important?arrow_forward
- The fact that most medical care purchases are financed through insurance: has no effect on health care consumption because aggregate costs are the same regardless of payment method. reduces the amount of health care consumed. has decreased health care costs and therefore reduced aggregate health care expenditures. increases the amount of health care consumed.arrow_forwardThe main selling point(s) of managed care is (are) what? ☐ 1) Reduce the cost of care. 2) Raise or maintain the quality of care 3) Help employer select healthier employees in the insurance pool. ○ 4) A & B ☐ 5) B & C ○ 6) A & Carrow_forwardNonqualified deferred compensation plan benefits constitute income when: Select one: a. The company acquires a life insurance policy on the employee. b. The company funds the benefits through allocation of its assets. c. The allocated assets are available to the employee with substantial limitations, conditions and risk of forfeiture. d. The allocated assets are available to the employee without substantial limitations, conditions and risk of forfeiture.arrow_forward
- How does having an effective payment model impact the role of a manager / administrators in a healthcare organization .arrow_forwardIn the context of the health insurance and the life insurance, choose the sentence that IS NOT CORRECT: * The deductible in a health insurance is an amount of money the insured must pay before benefits become payable by the insurance company. When we buy a health insurance, we should make sure that we have enough insurance (the opportunity cost of not being adequately insured can be extremely high), but without wasting money by overinsuring Group Health Insurance (most of them being employer sponsored) represents a small percentage (around 5%) of all health insurance issued by health and life insurance companies. In a life insurance, a person purchases a policy by paying a premium and the insurance company promises to pay a sum of money at the time of the policyholder’s death to the designated beneficiary.arrow_forwardHow can errors in a revenue cycle be prevented including patient registration, medical coding, claim follow-up, and due to inadequate staff training and external factors in a healthcare organizationarrow_forward
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