Statement of Operations and Financial Operations Crystal A. Dilliard Grantham University AH531 Healthcare Financial Management Professor Keith LaPrade April 7, 2015
Statement of Operations and Financial Operations 1. List several efforts that have been enacted by payors to control costs. Several efforts have been enacted by payors to control costs. Many agree healthcare reform and controlling health care costs began as early as the 1960s, when federal funded Medicare, and federal and state funded Medicaid programs, reimbursed institutions for healthcare. Medicare eligible Americans 65 years of age and older, and Medicaid eligible Americans in the low income brackets receive health care coverage under these plans, requiring…show more content… 28-55, 2014). 2. What are revenues, gains, and other support? Revenues, gains, and other support are figures contained in the unrestricted revenue section of a statement of operations report. Revenue includes amounts earned by the health care organization, the gains apply to profit of sales greater than the break-even value, and the other support are appropriations from unrestricted donations, and governmental entities (Zelman, McCue, Glick, & Thomas, p. 53, 2014). 3. What are expenses and losses? Expenses are a part of a statement of operations that include the total data related to the following categories: Salaries and wages, Employee benefits, Contract labor, Supplies, Purchased Services, Depreciation and amortization, Occupancy, Medical claims and capitation purchased services, Interest, and other expenses. Losses are part of a statement of operations that include the total amounts related to nonoperating items from the following categories: Investment (loss) income, Change in market value to include interest rate swaps of cash payments, Loss from early extinguishment of debt, Gain on bargain purchase and inherent contribution, and Other, including income taxes (Zelman, McCue, Glick, & Thomas, p. 60, 2014). 4. Funds released from restricted net assets to unrestricted net
