Health Care Organizations

Question 1

How do Hospitals modify the format of the Statement of Activity?

Answer 1

-Include Operating and Non-Operating sections

Question 2

Detail the Operating Section for Hospitals.

Answer 2

\+ Net Patient Service Revenues
-Provision for Bad debts
= Net Patient Service Revenues less Provisions for Bad Debts
\+Other Operating Revenues
\+Premium Revenues (Capitation Fees)
=Total Operating Revenue

Question 3

Detail the calculation for Net Patient Service Revenue.

Answer 3

\+Gross Patient Service Revenues (including Ancillary Revenues)
-Charitable Services
=Patient Service Revenue
-Contractual Adjustments
=Net Patient Service Revenue

Question 4

For hospitals, how is bad debt expense related to receivables other than patient service revenue presented?

Answer 4

-As operating expense

Question 5

What are three categories of hospital revenue?

Answer 5

• Patient Service Revenue
• Other Operating Revenue
• Non Operating Gains

Question 6

What are Premium Revenues (Capitation Fees)?

Answer 6

-Payments made to health care providers for comprehensive client coverage for a fixed fee