Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Health Care Finance
Assets and Liabilities
Assets and liabilities are found in a balance sheet. Baker and Baker (2011, p. 107) define a balance sheet as a record of "what an organization owns, what it owes, and basically, what it is worth."
Item
Asset
Liability
Cash
Inventory
Bonds payable
Buildings
Payroll taxes due
Accounts payable
Equipment
Notes receivable
Assets, in basic terms, are all those items that an entity owns. In essence, an asset should have some value attributable to it. Current assets, according to Shim and Siegel (2000, p. 25), "are assets expected to be converted into cash or used up...
Long-term assets, on the other hand, include all those assets or items an entity does not intend to consume within a single year. Examples include, but they are not limited to, motor vehicles and buildings.
Liabilities could be defined as the obligations and legal debts an entity owes to outsiders such as suppliers. Long-term liabilities, in the words of Shim and Siegel (2000, p. 25), "have a maturity of greater than one year." They, therefore, include such items as mortgage payable and bonds payable. Current liabilities, on the other hand, have a maturity of less than one financial year. Examples, in this case, include accounts…
References
Baker, J.J. & Baker, R.W. (2011). Health Care Finance: Basic Tools for Nonfinancial Managers (3rd ed.). Sudbury, MA: Jones and Bartlett Publishers.
Shim, J.K. & Siegel, J.G. (2000). Financial Management (3rd ed.). Hauppauge, NY: Barron's Educational Series, Inc.
Healthcare Finance: What is the break-Even analysis approach and its application in health care organizations? Unfortunately, hospital and health care budgeting of resources has become increasingly important in this cost-conscious era of health care. The last decades of cost-controlled medicine have required fiscally conscious approaches to the healthcare for many organizations, often at the expense of patient services. A financial analyst must strive to minimize this, yet still keep the organization
Healthcare Finance The relationship between the doctor and a possible patient is established when the physician asks the person for the first time as how he could be of possible help. This direct and simple enquiry is the beginning of the trust of the patient that has to be put in the physician for any treatment to proceed. The patient is in need of help at that time, and has to
Healthcare Finance What are the dynamics of patient accounts receivable? What are some of the factors affecting patients accounts receivable? Facing the challenge of how to address the hospital's unpaid accounts receivable can be one of the most emotionally draining issues for a patient accounts receivable department. In addition to people simply reigining on their payments, the department must face patients who cannot pay, who did not understand that their insurance would
Healthcare Finance Government rules: In United States the Congress had passed the Medicare Prescription Drug, Improvement and Modernization Act of 2003 or MMA and with this imposed a stoppage for 18 months on the starting of new physician owned specialty hospitals. At the same time, they also wanted to know the position regarding certain matters of physician owned heart, orthopedic and surgical specialty hospitals through MedPAC. The team visited sites, made legal
Health Care Finance One of the things people should know is that the landscape for health care is not good at present, especially in the not-for-profit sector. We are definitely running a not-for-profit health care institution here at VGH. Consider the Moody's Outlook for 2012, which is currently negative. There are a number of challenges that institutions like ours face, and will be explained in this article. Hospital revenue growth for the
Healthcare Finance In order to be successful in the present complex and frequently unfavorable business settings, a healthcare organization's strategic direction should be estimated, focused, and financially sustainable. Strategic business planning is an indispensable instrument to aid organizations focus strategic choices within the financial actualities of their environment. An efficient strategic business planning cycle includes making an evaluation, identification of business objectives, making strategies, performing an impact analysis and developing an