HCS 182 Week 5 Bookkeeping

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HCS 182 Week 5 Bookkeeping

Resource: Bookkeeping Worksheet

Complete Parts A, B, and C of the Bookkeeping Worksheet.

Click the Assignment Files tab to submit your assignment.

Part A: Match the appropriate term to its definition.

1.
_____    Medical Service Charge

Fee

A.
Occurs when patient makes payment on the charges for the service delivered.
2.
_____    Posting a Payment

B.
Measures collection period of receivables.
3.

C.
Reimbursing the patient for an overpayment of the charges for the services previously delivered.
4.

D.
Write-off can be done with either allowance method or direct method.
5.
_____    Payment Refund

E.
After a patient’s diagnosis occurs, the patient account must be updated based on the fee for the service.
6.
_____    End of Day Summary

F.
Document consisting of proof of posting sections, month to date accounts receivable proof, and year to date accounts receivable proof.
7
_____    Relative Value Unit

G.
Portion of the patient’s bill that must be written off because of billing agreements with an insurance company.
8.
_____    Average Charge per

Procedure

H.
The percentage rate of claims denied for private insurance versus government insurance versus self-paying individuals for a provider.
9.
_____    Net Charges

I.
The percentage of revenue coming from private insurance versus government insurance versus self-paying individuals for a provider.
10.
_____    Average AR Days

Outstanding

J.
Are payments a provider has agreed to accept from payers for the services provided.
11.
_____    Payer Mix

K.
Average cost of a certain medical procedure.
12.
_____    Payer Denial Rate

L.
A measure of value used in the United States Medicare reimbursement formula for physician services.

Part B:

Read the following scenario then use the data and formulas below to calculate the Gross Collections Rate, Net Collections Rate, and Average AR Days Outstanding.

John is preparing for the quarterly financial meeting and must present the current figures to the providers of Sunshine Family Healthcare. John has asked you to help him with this task and wants you review the data below and calculate values needed for his presentation.

For the Quarter

Total Charges: 750,000

Total Collections: 525,000

Accounts Receivables: 85,000

Net Charges: 435,000

Total Collections / Totals Charges = Gross Collections Rate

Net Charges / Total Collections = Net Collections Rate

(net charges are payments a provider has agreed to accept from payers for the services provided)

Accounts Receivables / (Total Charges / 365) = Average AR Days Outstanding

(measures collection period of receivables)

Part C:

Write a 90- to 175-word response to each of the following prompts:

Identify various posting actions included in a medical office.

Explain the importance of reconciling financial statements.

Explain the importance of petty cash management.