Hospital Accounting (Portfolio 5204)
Hospital Accounting addresses a variety of unique operating circumstances that face hospitals and give rise to a multitude of accounting issues.
Bloomberg Tax and Accounting Portfolio 5204-2nd, Hospital Accounting (Accounting Policy and Practice Series) addresses a variety of unique operating circumstances that face hospitals and give rise to a multitude of accounting issues. Complicating this is the fact that hospitals may be organized as either for-profit or not-for-profit entities. This Portfolio describes the fundamental concepts involved in the accounting and financial reporting for hospitals. Since the majority of hospitals are not-for-profit, the Portfolio discusses in depth the accounting rules affecting these types of organizations, highlighting major differences between not-for-profit and for-profit treatment.
The hospital industry is also heavily regulated, and this regulation impacts accounting and financial reporting in several ways. Most notably, hospitals rely extensively on third party payors, such as insurance companies and the government, for much of their revenues. The myriad of cost reimbursement and receivables issues are addressed, as are the charity care activities engaged in by not-for-profit hospitals to retain their tax-exempt status.
Hospitals receive, in addition to patient care revenue, income from ancillary services such as laboratories, gift shops, and physician office leases. This Portfolio analyzes accounting for the most common categories of hospital revenues and offers suggestions for improved reporting and, to a lesser extent, financial management.
Although tax exemption is a major issue for not-for-profit hospitals, tax matters are only addressed insofar as they impact accounting and financial disclosure. While a basic understanding of tax exemption issues is necessary, a full exposition of the topic is beyond the scope of this Portfolio. Readers interested in this subject are encouraged to consult Simpson, 869 T.M., Tax-Exempt Organizations: Organizational and Operational Requirements, and Webster, 452 T.M., Tax-Exempt Organizations: Reporting, Disclosure and Other Procedural Aspects. Likewise, cost accounting has become a topic of great interest to those involved in hospital financial management. While certain cost accounting issues are peripherally addressed, this Portfolio makes no attempt to describe hospital cost accounting in detail. Associated topics are addressed in 5300, Cost Accounting Principles for Federal Contracts (Accounting Policy and Practice Series).
This Portfolio may be cited as Bloomberg Tax and Accounting Portfolio 5204-2nd, Borek, Hospital Accounting (Accounting Policy and Practice Series).
Table of Contents
I. Economic and Regulatory Perspectives
II. Types of Hospital Organizations
III. Contractual Relationships
IV. General Accounting Considerations
V. Cash and Cash Equivalents
VIII. Property, Equipment, and Other Assets
IX. Current Liabilities
XI. Long Term Obligations
XII. Commitments and Contingencies
XIII. Net Assets and Equity
XIV. Revenues and Expenses
XV. Affiliations and Related Organizations
XVII. Hospital Consolidations and Mergers
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Borek Group LLC