Revenue income for a hospital: Patient service fees received from the patients is the revenue for a hospital. Any contractual adjustments to third parties should not be part of revenue for a hospital. : Net patient service revenue for D Hospital.

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Chapter 19, Problem 19.2.1E

To determine

Concept Introduction:

Revenue income for a hospital:

Patient service fees received from the patients is the revenue for a hospital. Any contractual adjustments to third parties should not be part of revenue for a hospital.

:

Net patient service revenue for D Hospital.

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Transactions (a) through (e) took place in Stoney Heights Private Hospital during the year ending December 31, 2019.a. Gross revenues of $5,000,000 were earned for service toMedicare patients.b. Expected contractual adjustments with Medicare, a third-party payor, are $2,500,000; and an allowance for contractual adjustments account is used by Stoney Heights.c. Medicare cleared charges of $5,000,000 with payments of $2,160,000 and total contractual allowances of $2,840,000 ($2,500,000 + $340,000).d. Interim payments received fromMedicare amounted to $250,000.e. The hospital made a lump-sum payment back toMedicare of $100,000.1. Record the transactions in the general journal.2. Calculate the amount of net patient service revenues.3. What is the net cash flow from transactions withMedicare?4. What adjustments must be made at year-end to settle up with Medicare and properly report the net patient service revenues after this settlement?

White Valley Presbyterian Hospital is a nonprofit initial care facility. For the hospital’s calendar year ending December 31, 2019 journal entries to record the transactions listed in 1 through 14. below Third-parties payers and direct-pay patients were billed $6,500,000 at the hospital's established billing rates The hospital determined that certain of its patients qualified for charity care and that it would not seek to collect $950,000 at established billing rates from direct-pay patients The hospital estimated contractual adjustments for the year of $1,600,000 The hospital originally estimated uncollectible amounts from direct-pay patients to be $250,000 (recall that original estimated uncollectible amounts reduce revenue; only estimates specific to an individual patient are reported as bad debt expense). The hospital received capitation premiums of $2,500,000. It estimated that the cost of providing this care was $1,800,000 The hospital received payments from third-party payers…

Accounting for patient service revenue Ruby Ruth Hospital had the following transactions during the year ended December 31:1. The hospital provided services to patients insured by third-party payer A amounting to $9.0 millionat its established billing rates. The hospital’s prospective billing arrangement with this third partystipulates payment to the hospital of 70 percent of its established rates for services performed.All billings were paid during the year.2. The hospital provided services to patients insured by third-party payer B amounting to $5.4 millionat its established billing rates. Its retrospective billing arrangement with this third party stipulatesthat the hospital should receive payment at an interim rate of 90 percent of its established rates,subject to retrospective adjustment based on agreed-upon allowable costs. By year-end, B had paidall the billings. Before issuing its financial statements, the hospital estimated that the probableamount it will need to refund to B…

Answer 2

Question

Chapter 19, Problem 19.2.1E

To determine

Concept Introduction:

Revenue income for a hospital:

Patient service fees received from the patients is the revenue for a hospital. Any contractual adjustments to third parties should not be part of revenue for a hospital.

:

Net patient service revenue for D Hospital.

Expert Solution & Answer

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Answer 3

Question

Chapter 19, Problem 19.2.1E

To determine

Concept Introduction:

Revenue income for a hospital:

Patient service fees received from the patients is the revenue for a hospital. Any contractual adjustments to third parties should not be part of revenue for a hospital.

:

Net patient service revenue for D Hospital.

Expert Solution & Answer

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See solution

Answer 4

Question

Chapter 19, Problem 19.2.1E

To determine

Concept Introduction:

Revenue income for a hospital:

Patient service fees received from the patients is the revenue for a hospital. Any contractual adjustments to third parties should not be part of revenue for a hospital.

:

Net patient service revenue for D Hospital.

Expert Solution & Answer

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See solution

Answer 5

Chapter 19, Problem 19.2.1E

To determine

Concept Introduction:

Revenue income for a hospital:

Patient service fees received from the patients is the revenue for a hospital. Any contractual adjustments to third parties should not be part of revenue for a hospital.

:

Net patient service revenue for D Hospital.

Answer 6

Chapter 19, Problem 19.2.1E

To determine

Concept Introduction:

Revenue income for a hospital:

Patient service fees received from the patients is the revenue for a hospital. Any contractual adjustments to third parties should not be part of revenue for a hospital.

:

Net patient service revenue for D Hospital.

Answer 7

Chapter 19, Problem 19.2.1E

To determine

Concept Introduction:

Revenue income for a hospital:

Patient service fees received from the patients is the revenue for a hospital. Any contractual adjustments to third parties should not be part of revenue for a hospital.

:

Net patient service revenue for D Hospital.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 19 - Prob. 19.1Q Ch. 19 - Prob. 19.2Q Ch. 19 - Prob. 19.3Q Ch. 19 - Prob. 19.4Q Ch. 19 - Prob. 19.5Q Ch. 19 - Prob. 19.6Q Ch. 19 - Prob. 19.7Q Ch. 19 - Prob. 19.8Q Ch. 19 - Prob. 19.9Q Ch. 19 - Prob. 19.10Q

Revenue income for a hospital: Patient service fees received from the patients is the revenue for a hospital. Any contractual adjustments to third parties should not be part of revenue for a hospital. : Net patient service revenue for D Hospital.

Solution Summary: The author explains that patient service fees are the revenue for a hospital. Any contractual adjustments to third parties should not be part of revenue.

Concept Introduction:

Revenue income for a hospital:

Patient service fees received from the patients is the revenue for a hospital. Any contractual adjustments to third parties should not be part of revenue for a hospital.

:

Net patient service revenue for D Hospital.

Want to see the full answer?

Chapter 19 Solutions

Revenue income for a hospital: Patient service fees received from the patients is the revenue for a hospital. Any contractual adjustments to third parties should not be part of revenue for a hospital. : Net patient service revenue for D Hospital.

Solution Summary: The author explains that patient service fees are the revenue for a hospital. Any contractual adjustments to third parties should not be part of revenue.

Concept Introduction: Revenue income for a hospital: Patient service fees received from the patients is the revenue for a hospital. Any contractual adjustments to third parties should not be part of revenue for a hospital. : Net patient service revenue for D Hospital.

Want to see the full answer?

Chapter 19 Solutions

Concept Introduction:

Revenue income for a hospital:

Patient service fees received from the patients is the revenue for a hospital. Any contractual adjustments to third parties should not be part of revenue for a hospital.

:

Net patient service revenue for D Hospital.