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(TCO 2) What is the basic accounting equation?


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(TCO 2) What is the basic accounting equation?

(TCO 1) What are the primary responsibilities of the financial manager?

(TCO 1) What are the six stages of the revenue cycle?

(TCO 1) What is the False Claims Act and how does it impact providers of health care services?

(TCO 4) You have been asked to establish a pricing structure for radiology on a per-procedure basis. Present budgetary data is presented below:
Budgeted Procedures 10,000
Budgeted Cost$400,000
Desired Profit $80,000
It is estimated that Medicare patients comprise 40 percent of total radiology volume and will pay on average $38.00 per procedure. Approximately 10 percent of the patients are cost payers. The remaining charge payers are summarized below:


Volume %

Discount %

Blue Cross



Unity PPO






Self Pay






What rate must be set to generate the required $80,000 in profit in the preceding example?

(TCO 3) Assume that a certain nursing home has two categories of payers. Medicaid pays $60.00 per day and private pay patients pay the established per diem, but approximately 10 percent of private-pay charges are not collected. If 50 percent of the patients are Medicaid and 50 percent are private pay, what rate must be set to generate $150,000 in profit? Variable costs are $45.00 per day and fixed costs are expected to be $1,000,000. Expected volume is 50,000 patient days.

(TCO 5) What are the advantages to a tax-paying entity in issuing debt as opposed to equity?

(TCO 6) What is the purpose of disbursement policies?

(TCO 6) What are the three reasons why a health care facility holds cash?

(TCO 7) Why is tax-exempt financing cited as a benefit received by not-for-profit healthcare providers?

(TCO 1) What are the three factors that influence pricing?

(TCO 5) Why is a dollar today worth more than a dollar received in the future?

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