Healthcare Accounting Financial Reporting & Analysis Flashcards

A critical access hospital (CAH) is reimbursed by Medicare primarily on which basis?

Answer: Cost-based reimbursement at 101% of reasonable costs

CAHs receive cost-based Medicare reimbursement at 101% of allowable costs, rather than DRG prospective payment, to help ensure rural hospital viability.

In healthcare segment reporting, which standard governs disclosure of information about reportable operating segments?

Answer: ASC 280

ASC 280 (Segment Reporting) requires entities to disclose information about reportable operating segments based on how management internally reviews financial information.

Which of the following would appear in the 'financing activities' section of a hospital's statement of cash flows?

Answer: Proceeds from issuance of long-term bonds

Proceeds from bond issuances are financing activities because they relate to borrowing activities used to fund the organization's capital structure.

A hospital's payer mix shift from commercial insurance to Medicaid would most likely result in:

Answer: Lower net patient revenue per adjusted discharge

Medicaid typically reimburses at significantly lower rates than commercial insurers, so a shift toward Medicaid payers reduces net patient revenue per adjusted discharge.

Under GASB Statement No. 68, governmental hospitals must record:

Answer: Their proportionate share of the net pension liability for defined benefit plans

GASB 68 requires governmental employers to recognize their proportionate share of the collective net pension liability on the statement of net position.

Which financial ratio is most directly used to assess how efficiently a hospital converts billed services into cash?

Answer: Days in accounts receivable

Days in accounts receivable measures how quickly a hospital converts billed services into cash collections, indicating billing and collection efficiency.

For a not-for-profit hospital, 'board-designated net assets' are classified as:

Answer: Net assets without donor restrictions

Board-designated funds are set aside by internal board action, not by external donor restrictions, so they remain classified as net assets without donor restrictions.