MH683 Activity 6 Financial Information in Health Care

ACTIVITY 6

MH683 Information Management

 

Lesson 6: Financial Information in Health Care

 

Activity: Financial Information in Health Care

This activity is comprised of three (3) parts.  Your Activity responses should be both grammatically and mechanically correct and formatted in the same fashion as the Activity itself.  If there is a Part A, your response should identify a Part A, etc.  In addition, you must appropriately cite all resources used in your response and document them in a bibliography using APA style.  A 4-page response is required for the combination of parts A, B, and C. (100 points)

 

Accounting of financial information in health care is critical, just as it is in any business. Provide the following information for Parts A, B, and C below.

 

Part A         Describe and differentiate the various financial forms utilized for managing financial assets in the health care setting.

 

Part B         Use the following information to prepare an income statement for March, 2015.

 

                   Maria Hernandez, Family Nurse Practitioner, has recently opened a new Family Medicine Practice. Total billed revenues for March were $18,000. Currently, all of his patients are insured by commercial insurers or Medicare. Third-party payers typically pay two months after care is delivered, so her actually receipts in March are zero. NP Hernandez pays her nursing staff $1700 twice a month. The rest of her expenses such as rent, utilities, supplies, insurance, and bookkeeping are paid monthly and total $6500.

 

                   Prepare an income statement for March on a cash basis and on an accrual basis.

 

Part C         Describe managed care and explain the impact on financial management in the health care setting.

 

 

Grading Rubric

Please refer to the rubric on the following page for the grading criteria for this assignment.