· Late submission will result in ZERO marks being awarded.Q2. The following are account balances (in thousands) for ALLAYAKA Health Plan. Prepare a balance sheet and statement of operations for the year ended December 31, 2012. (4 Marks)
· This Assignment must be submitted on Blackboard (WORD format only) via the allocated folder.
· Email submission will not be accepted.
· The work should be your own, copying from students or other resources will result in ZERO marks.
Last Date for Submission 28/02/2018
Q1.What do you mean by financial management of health care organizations? Identify key elements that are driving changes in health care delivery. (2 Marks)
Q2. The following are account balances (in thousands) for ALLAYAKA Health Plan. Prepare a balance sheet and statement of operations for the year ended December 31, 2012. (4 Marks)
Net property and equipment $ 2,000
Accounts receivable $3,000
Medical claims payable $37,000
Patient service revenue (net of contractuals) $ 950,000
Supply expense $ 255,000
Net assets released from restriction for operations $ 45, 000
Depreciation expense $ 35,000
Labor expense $300,000
Provision for bad debts $12,000
Net Assets $61,500
Cash & cash equivalents $97,000
Long-term debt $3,500
Q3. What are the major differences in recording transactions for a for-profit organization versus a not-for-profit one, or are there any? (2 Marks)
Q4. What is the difference between the operating margin ratio and a return on total assets ratio? What is the difference between operating revenue per adjusted discharge ratio and operating expense per adjusted discharge ratio? To what categories of ratios do these ratios belong? (2 Marks)