Accounting for Governmental & Nonprofit Entities
17th Edition
ISBN: 9780078025822
Author: Jacqueline L. Reck James E. Rooks Distinguished Professor, Suzanne Lowensohn, Earl R Wilson
Publisher: McGraw-Hill Education
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Question
Chapter 16, Problem 15.6EP
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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Which of he following stalements BEST describes the primary difference between a Health Maintenance Organizalion (HMO) and a Preferred Provider Organization (PPO)?
A.Under a PPO lhe insured may use any medical provider whereas providers are restricted with HMOs.
B.Under an tvo the deductibles are higher than are those of PPOs.
C.POs do not provide preventive care benefits whereas HMOs do
D.HMOs utilize larger cost sharing than do PPOs
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.
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.
Chapter 16 Solutions
Accounting for Governmental & Nonprofit Entities
Ch. 16 - Prob. 1QCh. 16 - Prob. 2QCh. 16 - Prob. 3QCh. 16 - What is an example of a performance indicator and...Ch. 16 - Prob. 5QCh. 16 - Prob. 6QCh. 16 - What are assets limited as to use and how do they...Ch. 16 - Prob. 8QCh. 16 - Prob. 9QCh. 16 - Prob. 10Q
Ch. 16 - Prob. 11CCh. 16 - Prob. 15.1EPCh. 16 - Prob. 15.2EPCh. 16 - Which of the following is a true statement...Ch. 16 - Prob. 15.4EPCh. 16 - Prob. 15.5EPCh. 16 - Prob. 15.6EPCh. 16 - Prob. 15.7EPCh. 16 - Wellness Psychiatric Clinic received a large...Ch. 16 - Prob. 15.9EPCh. 16 - Prob. 15.10EPCh. 16 - Prob. 16EPCh. 16 - Prob. 17EPCh. 16 - Prob. 18EPCh. 16 - Prob. 19EPCh. 16 - Prob. 20EPCh. 16 - Prob. 21EPCh. 16 - Prob. 22EPCh. 16 - Prob. 23EP
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Similar questions
- 1. What are the four elements of financial management? 2. Briefly explain The Information Flow. 3. How can social media help a hospital manage the patient experience? 4. Briefly explain the difference between short-term and long-term assets. 5. What are the major differences in Government Sourcesand Managed Care Source? 6. Explain the two types of disbursements for services. 7. What is the difference between direct and indirect costs? Explain.arrow_forwardWhich of he following stalements is CORRECT about benefits provided by a Basic Hospital and Surgical policy? A.They are lower than he actual expenses incurred B.They are subject to large deductibles C.They are higher than those provided by Major Medical policies D.They are unlimited.arrow_forwardWhat have been the CONSEQUENCES of BC/BS conversion from not-for-profit to for-profit status in terms of market share, patient access, quality of care, and cost of care? Please explain how it has been CONSEQUENCE in great detail.arrow_forward
- Explain the following accounting terms in relation to healthcare providers:a. What is the difference between Gross Revenue and Net Revenue? (Hint: Think about discounts and charity care)b. What is the difference between Charity Care and Bad Debt Losses? How is each handled on the income statement?arrow_forwardWhich 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_forwardThe 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_forward
- What 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_forwardWhen is it appropriate to match the cost structure of a healthcare organization to its revenue structurearrow_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_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 a patient benefit if the premiums paid are more than the cost of the medical care received? How can an insurance company benefit if the medical care it provides costs more than the premiums paid in?arrow_forward
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