Acc 548 Healthcare Comparrison

Healthcare Comparison
Elena Terrell
ACC 548 Not-for-Profit & Government Accounting
February 2, 2015
Reese Scripture

1. Types of Health Care Organizations
A) Private not-for-profit healthcare organizations
B) Private for-profit healthcare organizations
C) Governmental healthcare organizations
2. Principal Sources of Revenue
A) Patient service revenue
B) Government (e.g., Medicare/Medicaid)
C) Third party payors (e.g., BC/BS)
D) Premium revenue from capitation fees (i.e., fixed fees per person paid periodically regardless
of services provided)
E) Resident service revenue (e.g., maintenance or rental fees)
F) Other revenue (e.g., auxiliary services, investment income, unrestricted contributions)
G) Net assets released from restrictions (for NPOs)
3.   Private not-for-profit healthcare organizations
A) Governing Body
* Guided by FASB
* AICPA Audit and Accounting Guide Health Care Organizations
B) Financial Reports Required
* Report using SFAS No. 117
* Fund Accounting Optional
* Balance sheet or statement of net assets
* Statement of operations- must include a performance indicator
* Statement of changes in net assets
* Statement of cash flows
C) Unique Requirements
* Funds used for internal purposes are
- General Unrestricted Funds
- Donor-Restricted Funds ex: Specific Purpose Fund, Plant Replacement and
Expansion Fund and Endowments
* Equity reported on Balance Sheet
- Unrestricted net assets
- Temporarily restricted net assets
- Permanently restricted net assets
* Tax-exempt HCOs must conform to IRC sections and IRS regulations
- Intermediate sanctions
- Unrelated business income
4.  Private for-profit healthcare organizations
A) Governing Body
* Guided by FASB
* AICPA Audit and Accounting Guide Health Care Organizations
B) Financial Reports Required
* Fund Accounting Optional
* Balance sheet or statement of net assets
* Statement of operations
*...