Assume that services during the year included these three patients: Mrs. Marple, a Medicare patient whose stay at Reston Hospital (one of HCA’s owned hospitals) was for 7 days and who received services which HCA assigned in retail charges (otherwise termed gross revenue) of $25,000. The Medicare DRG payment for her case is expected to be $10,000; Mr. Chan, a patient with little income or assets and one whom the hospital classifies as a charity patient, stayed in the hospital 4 days and received services with gross charges amounting to $18,000; Mr. Friday stayed in the hospital for 3 days and received services with gross charges amounting to $28,000. Although Mr. Friday had no insurance, he did have a significant source of income and had a sizable amount of assets. Attempts by the hospital to locate Mr. Friday to settle his bill have proven fruitless, and currently he has moved and has left no forwarding address. Assume that at the end of the period the status of the bills for the services for the patients described above were as follows: Medicare had not yet paid Mrs. Marple’s hospital bill, but the hospital was confident that Medicare would do so soon at the DRG amount noted above; Mr. Chan’s situation as a charity patient was identified by the hospital and they expected no payment for his services. Attempts to collect Mr. Friday’s bills had ended and the hospital did not believe that they would receive any payment. Where, if anywhere, would you find on the Balance Sheet the amounts owed by these patients and how would these be displayed?
Assume that services during the year included these three patients: Mrs. Marple, a Medicare patient whose stay at Reston Hospital (one of HCA’s owned hospitals) was for 7 days and who received services which HCA assigned in retail charges (otherwise termed gross revenue) of $25,000. The Medicare DRG payment for her case is expected to
be $10,000; Mr. Chan, a patient with little income or assets and one whom the hospital classifies as a charity patient, stayed in the hospital 4 days and received services with gross charges amounting to $18,000; Mr. Friday stayed in the hospital for 3 days and received services with gross charges amounting to $28,000. Although Mr. Friday had no insurance, he did have a significant source of income and had a sizable amount of assets. Attempts by the hospital to locate Mr. Friday to settle his bill have proven fruitless, and currently he has moved and has left no forwarding address.
Assume that at the end of the period the status of the bills for the services for the patients described above were as follows: Medicare had not yet paid Mrs. Marple’s hospital bill, but the hospital was confident that Medicare would do so soon at the DRG amount noted above; Mr. Chan’s situation as a charity patient was identified by the hospital and they expected no payment for his services. Attempts to collect Mr. Friday’s bills had ended and the hospital did not believe that they would receive any payment. Where, if anywhere, would you find on the
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