Discussion Board Unit 2

Parktown Medical Center, Inc.. is a small health care provider owned by a publicly heldcorporation. It employs 7 salaried physicians, I0 nurses, 3 support stafl, and 3 clericalworkers. The clerical workers perform such tasks as reception, correspondence, cashreceipIs,billing, and appointment scheduling. All are adequately bonded. Most patients pay for services rendered by cash or check on the day of their visit.Sometimes.however, the physician who is to performservices apprcredit based on an interview. When credit is approved, the physician files a memo vone of the clerks to set up the receivable using data the physician generates.The servicing physician prepares a charge sup that 1s given to one or the clerKs IorDicing and preparation of the patient S bill. At the end of the dav.one of the clerks usesthe bills to preparea revenue summarv and. in cases of credit sales. to update thecounts receivable subsidiary ledger.The frontoffice clerks receive cash and checksdirectly from patients…

VIP-MD is a health maintenance organization (HMO) located in North Carolina. Unlike the traditional fee-for-service model that determines the payment according to the actual services used or costs incurred, VIP-MD receives a fixed, prepaid amount from subscribers. The per member, per month rate (PMPM) is determined by estimating the health care cost per enrollee within a geographic location. The average health care coverage in North Carolina costs $376 per month, which is the same amount irrespective of the subscriber’s age. Because individuals are demanding quality care at reasonable rates, VIP-MD must contain its costs to remain competitive. A major competitor, National Physicians, entered the North Carolina market early in the current year with a monthly premium of $333. VIP-MD wants to maintain its current market penetration and hopes to increase its enrollees in the current year. The latest data on the number of enrollees and the associated costs follow:   Age Enrollment in…

Assume that the entity is a private not-for-profit hospital. During Year 2, the hospital has two portfolios: patients with insurance and patients without insurance. Work with a standard charge of $2 million is done for the first group and work with a standard charge of $1 million is done for the second group. Insurance companies have contracts that create explicit price concessions. The hospital believes it has a 60 percent chance of collecting $1.5 million and a 40 percent chance of collecting $1.3 million. Because of the high cost of health care, uninsured patients receive a variety of implicit price concessions. The hospital believes it has a 70 percent chance of collecting $300,000 and a 30 percent chance of collecting $200,000. The hospital reported exchange revenue of $3 million and a provision for bad debt (a contra revenue account) of $1.2 million to drop the reported balance to the expected collection amount. Assume the hospital wants to use the most likely amount where…

Glencoe Medical Clinic operates a cardiology care unit and a maternity care unit. Colby Hepworth, the clinic’s administrator, is investigating the charges assigned to cardiology patients. Currently, all cardiology patients are charged the same rate per patient day for daily care services. Daily care services are broadly defined as occupancy, feeding, and nursing care. A recent study, however, revealed several interesting outcomes. First, the demands patients place on daily care services vary with the severity of the case being treated. Second, the occupancy activity is a combination of two activities: lodging and use of monitoring equipment. Since some patients require more monitoring than others, these activities should be separated. Third, the daily rate should reflect the difference in demands resulting from differences in patient type. Separating the occupancy activity into two separate activities also required the determination of the cost of each activity. Determining the costs…

City Bus Corporation provides school bus transportation to public schools in Lancaster County. City Bus owns 50 buses that are garaged in three different cities within the county. The firm faces competition from two larger bus companies that operate in the same area. Public school boards gener- ally award contracts to the lowest bidder, but the level of service and overall performance are also considered. b. Identify the major loss exposures faced by City Bus. c. For each of the loss exposures identified in (b), identify a risk management technique or combina- tion of techniques that could be used to handle the exposure. d. Describe several sources of funds for paying losses if retention is used in the risk management a. Briefly describe the steps in the risk management process that should be followed by the risk manager of City Bus. program. e. Identify other departments in City Bus that would also be involved in the risk management program.

The effects of climate related risks on insurance companies.  - Identify the climate related risks which may affect insurance companies in St. Kitts and Nevis and the region on a whole.  - State the mitigating measures registered insurance companies should have in place to minimize the impact of identified risks.  - Include the steps the regulatory authority should take to ensure that this is monitored effectively.

Delaware Medical Center operates a general hospital. The medical center also rents space and beds to separately owned entities rendering specialized services, such as Pediatrics and Psychiatric Care. Delaware charges each separate entity for common services, such as patients' meals and laundry, and for administrative services, such as billings and collections. Space and bed rentals are fixed charges for the year, based on bed capacity rented to each entity. Delaware Medical Center charged the following costs to Pediatrics for the year ended June 30, 20x1: Dietary Janitorial Laundry Laboratory Pharmacy Repairs and maintenance General and administrative Rent Billings and collections. Total Annual Patient Days Up to 22,000 22,001 to 26,000 26,001 to 29, 200 Aides 20 25 31 Patient Days (variable) $ 580,000 270,000 440,000 320,000 Nurses 10 14 16 220,000 $1,830,000 During the year ended June 30, 20x1, Pediatrics charged each patient an average of $300 per day, had a capacity of 50 beds, and…

Delaware Medical Center operates a general hospital. The medical center also rents space and beds to separately owned entities rendering specialized services, such as Pediatrics and Psychiatric Care. Delaware charges each separate entity for common services, such as patients’ meals and laundry, and for administrative services, such as billings and collections. Space and bed rentals are fixed charges for the year, based on bed capacity rented to each entity. Delaware Medical Center charged the following costs to Pediatrics for the year ended June 30, 20x1:    Patient Days (variable) Bed Capacity (fixed) Dietary   $ 540,000       —   Janitorial     —     $ 71,000   Laundry     240,000       —   Laboratory     400,000       —   Pharmacy     320,000       —   Repairs and maintenance     —       33,000   General and administrative     —       1,320,000   Rent     —       1,570,000   Billings and collections     230,000       —   Total   $ 1,730,000     $ 2,994,000…

Local Hospital (LH) has decided that it would like to send nurses to a local supermarket to provide a free health screening for interested supermarket customers. The screening will consist of measuring the individual’s blood pressure and taking a drop of blood, which will be immediately tested for several critical indicators. The director of public relations at the hospital believes that 100 people will take advantage of the screening each day. The plan is to provide the screening every day for one week; thus, a total of 700 screenings are expected. LH expects the supermarket to provide a $1,000 grant to help defray the costs of the program (since it will likely draw more customers to the store). LH anticipates the following expenses: Test Equipment Rental $500 For 1 week Nurses $50/hr Total of 10 hrs/day for 7 days Blood tests $1 Per individual tested Determine the special purpose budget for the program. Show revenues and expenses by line item, and show the expected profit or loss. If…

Which of the following entities would consider portions of the AICPA Audit and Accounting Guide: Health Care Entities category b authoritative guidance? A business-type government hospital. A not-for-profit hospital. A for-profit hospital. All of the above.

Delaware Medical Center operates a general hospital. The medical center also rents space and beds to separately owned entities rendering specialized services, such as Pediatrics and Psychiatric Care. Dela-ware  charges  each  separate  entity  for  common  services,  such  as  patients’  meals  and  laundry,  and  for  administrative services, such as billings and collections. Space and bed rentals are fixed charges for the year, based on bed capacity rented to each entity. Delaware Medical Center charged the following costs to Pediatrics for the year ended June 30, 20x1"                                                                                     Patient Days                  Bed Capacity Dietary ....................................................................... $600,000                           — Janitorial .......................................................................—                                 $70,000 Laundry…

17. In Year 1, Better Sleep Company began to receive complaints from physicians that patients were experiencing unexpected side effects from the company's sleep apnea drug. The company took the drug off the market near the end of Year 1. During Year 2, the company was sued by 1,000 customers who had had a severe allergic reaction to the company's drug and required hospitalization. At the end of Year 2, the company's attorneys estimated a 60 percent chance the company would need to make payments in the range of $1,000 to $5,000 to settle each claim, with all amounts in that range being equally likely. At the end of Year 3, while none of the cases had been resolved, the company's attorneys now estimated an 80 percent probability the company would be required to make payments in the range of $2,000 to $7,000 to settle each claim. In Year 4, 400 claims were settled at a total cost of $1.2 million. Based on this experience, the company believes 30 percent of the remaining cases will be…

General and Technical Rule Cases. Read the following cases. For each, state whether theaction or situation shows a violation of the AICPA Code of Professional Conduct; if so,explain why and cite the relevant rule.a. CPA Jerry Cheese became the new auditor for Python Insurance Company. Cheese knewa great deal about insurance accounting but had never conducted an audit of an insurancecompany. Consequently, Cheese hired CPA Tate Gilliam, who had six years of experience with the State Department of Insurance Audit. Gilliam managed the audit, andCheese was the partner in charge.

General and Technical Rule Cases. Read the following cases. For each, state whether the action or situation shows a violation of the AICPA Code of Professional Conduct; if so, explain why and cite the relevant rule.a. CPA Jerry Cheese became the new auditor for Python Insurance Company. Cheese knew a great deal about insurance accounting but had never conducted an audit of an insurance company. Consequently, Cheese hired CPA Tate Gilliam, who had six years of experience with the State Department of Insurance Audit. Gilliam managed the audit, and Cheese was the partner in charge. b. CPA Mackenzie Palin practices public accounting and is a director of Comedy Company. Palin’s firm performs consulting and tax services for Comedy. Palin prepared unaudited financial statements on Comedy’s letterhead and submitted them to First National Bank in support of a loan application. Palin’s accounting firm received a fee for this service.c. CPA Ellery Idle audited the financial statements of Monty…

Read the following cases. Required: For each case, select whether the action or situation shows a violation of the AICPA Code of Professional Conduct, and select the relevant rule. a. CPA Jerry Cheese became the new auditor for Python Insurance Company. Cheese knew a great deal about insurance accounting but had never conducted an audit of an insurance company. Consequently, Cheese hired CPA Tate Gilliam, who had six years of experience with the State Department of Insurance Audit. Gilliam managed the audit, and Cheese was the partner in charge. b. CPA Mackenzie Palin practices public accounting and is a director of Comedy Company. Palin's firm performs consulting and tax services for Comedy. Palin prepared unaudited financial statements on Comedy's letterhead and submitted them to First National Bank in support of a loan application. Palin's accounting firm received a fee for this service. c. CPA Ellery Idle audited the financial statements of Monty Corporation and gave an unmodified…

The president of the American Insurance Institute wants to compare the yearly costs of auto insurance offered by two leading companies. He selects a sample of 15 families, some with only a single insured driver, others with several teenage drivers, and pays each family a stipend to contact the two companies and ask for a price quote. To make the data comparable, certain features, such as the deductible amount and limits of liability, are standardized. The data for the sample of families and their two insurance quotes are reported in the table. Family Becker Berry Cobb Debuck Midstates Car Insurance $ 2,090 Gecko Mutual Insurance $ 1,610 1,683 1,247 1,402 2,327 1,830 1,367 DuBrul 930 1,461 Eckroate 697 1,789 German 1,741 1,621 Glasson 1,129 1,914 King 1,018 1,956 Kucic 1,881 1,772 Meredith 1,571 1,375 Obeid 874 1,527 Price 1,579 1,767 Phillips 1,577 Tresize 860 1,636 1,188 Click here for the Excel Data File At the 0.10 significance level, can we conclude that there is a difference in…

It is hypothesized that, of the students completing their degree in physical therapy in the state of Georgia, 35% of them take a job in Georgia, 38% take a job in a neighboring state, while the rest take a job further away. A random sample of 86 students graduating with a degree in physical therapy in Georgia over the last 10 years are selected and 40 of them took a job in-state, 22 of them took a job in a neighboring state, and the rest of them took a job in a state further away. What value represents the expected frequency for PT graduates who took a job in a neighboring state? If needed, round your answer to two decimal places.

True or false 12) The brokers' motivation is measured in five levels: Great, Good, Regular, Bad, and Awful. 13) The regulatory agency defines the minimum and maximum premiums to be charged for each type of insurance. 14) Reinsurance can be conducted, without limits, for Auto, Property, and Life insurance. 15) The combined index does not measure the insurer's operational efficiency.

A county medical agency is considering two mutually exclusive options for treatment of a chronic illness in a population ot elderly patients. For cach option the agency has initial outlays (for equipment and initial training) and annual expenses. Patient benefits are measured in terms of quality of life, and patient costs are measured in terms of lost income due to treatment. Estimates have been made of the dollar value of both. Each option has a lifetime of 5 years, after which new options will be considered based on the technology available then. MARR is 5%. A $165,000 55,000 Investment (t O) $120,000 Annual expense Annual patient benefits Annual patient costs 35.000 175,000 12,000 200,000 18,000 What is the incremental BC when the two are compared? Select the answer closest to this value. O 0.63 O 0.69 0.75 O 0.96

Nursing Care Incorporated, or NCI, operates both a small nursing home and a retirement home. There is a single kitchen used to provide meals to both the nursing home and retirement home, meaning labor costs and utilities costs of the kitchen are shared by the two homes. There is also a centralized cleaning department that provides the cleaning services for both homes as well as the kitchen. The nursing home serves only indigent patients who are on Medicaid. The state Department of Health and Family Services (DHFS) reimburses NCI at Medicaid-approved cost reimbursement rates. The Medicaid reimbursement rates are based on cost information supplied by NCI. The relevant cost and allocation data for the most recent year appear in the following table.     Annual Operating Cost Cleaning department $ 90,000 Central kitchen $ 120,000   Allocation Base Kitchen Nursing Home Retirement Home Square feet of space 1,000 2,000 3,000 Number of residents — 6 4

Nursing Care Incorporated, or NCI, operates both a small nursing home and a retirement home. There is a single kitchen used to provide meals to both the nursing home and retirement home, meaning labor costs and utilities costs of the kitchen are shared by the two homes. There is also a centralized cleaning department that provides the cleaning services for both homes as well as the kitchen. The nursing home serves only indigent patients who are on Medicaid. The state Department of Health and Family Services (DHFS) reimburses NCI at Medicaid-approved cost reimbursement rates. The Medicaid reimbursement rates are based on cost information supplied by NCI. The relevant cost and allocation data for the most recent year appear in the following table.     Annual Operating Cost Cleaning department $ 90,000 Central kitchen $ 120,000   Allocation Base Kitchen Nursing Home Retirement Home Square feet of space 1,000 2,000 3,000 Number of residents — 6 4   Required: 1.…