BrendaThomas1 HS440 01 Unit 2 Assignment
HS440-04: Finance for Healthcare
Brenda Thomas
Unit 2 Assignment: Third-Party Payers
Professor Zacharia Varughese
January 18, 2015
To the attention of the Board of Directors of Health Care Systems, Inc.:
As the CFO of Health Care Systems, Inc., I feel like, in order to have proper reimbursement, correct coding is very important. If the codes are wrong, the charges will be wrong, as well. When you submit codes, the federal government uses them to reduce health care fraud. It is always good practice to double check your numbers before you submit them. “So, knowing the difference a diagnosis code of 280 (iron deficiency anemia) and 820 (a fracture of the neck of the femur) will help protect your practice from fraud and abuse investigations, as well as help ensure you get paid for what you do.” (Hill, 1999). The role of finance in Health Care Systems, Inc. as a not-for-profit hospital is to support the provision of high quality care on a financial level. “In other words, firms may use not-for-profit status to commit themselves to provide quality by constraining their own incentives to reduce (unobserved and noncontractible) quality in favor of profits.” (Chang & Jacobson, 2010). The financial information for not-for-profit hospitals is primarily used by the donors, members, creditors and/or anybody that provides the resources for the hospital. These are considered external users who all have common interests in the organization. These common interests assess the following:
“the services an organization provides and its ability to continue to provide those services and how managers discharge their stewardship responsibilities and other aspects of their performance.” (Financial Accounting Standards Board, 1993).
The main use of a financial statement is to give the information that is relevant to the organization’s assets, liabilities and the net assets. It also shows the relationship that they have with each other. Its main focus is on the whole
Brenda Thomas
Unit 2 Assignment: Third-Party Payers
Professor Zacharia Varughese
January 18, 2015
To the attention of the Board of Directors of Health Care Systems, Inc.:
As the CFO of Health Care Systems, Inc., I feel like, in order to have proper reimbursement, correct coding is very important. If the codes are wrong, the charges will be wrong, as well. When you submit codes, the federal government uses them to reduce health care fraud. It is always good practice to double check your numbers before you submit them. “So, knowing the difference a diagnosis code of 280 (iron deficiency anemia) and 820 (a fracture of the neck of the femur) will help protect your practice from fraud and abuse investigations, as well as help ensure you get paid for what you do.” (Hill, 1999). The role of finance in Health Care Systems, Inc. as a not-for-profit hospital is to support the provision of high quality care on a financial level. “In other words, firms may use not-for-profit status to commit themselves to provide quality by constraining their own incentives to reduce (unobserved and noncontractible) quality in favor of profits.” (Chang & Jacobson, 2010). The financial information for not-for-profit hospitals is primarily used by the donors, members, creditors and/or anybody that provides the resources for the hospital. These are considered external users who all have common interests in the organization. These common interests assess the following:
“the services an organization provides and its ability to continue to provide those services and how managers discharge their stewardship responsibilities and other aspects of their performance.” (Financial Accounting Standards Board, 1993).
The main use of a financial statement is to give the information that is relevant to the organization’s assets, liabilities and the net assets. It also shows the relationship that they have with each other. Its main focus is on the whole
References: Chang, T. & Jacobson, M. (2010). What is the Mission of a Not-For-Profit Hospital? Retrieved from www.users.nber.gov/-changt/ChangJacobson0c19.pdf Diagnosis Codes. (n.d.). Retrieved from www.highered.mheducation.com/sites/dl/free/.../636979/SampleChapter.pdf Gapenski, L. C. (2013). Fundamentals of Healthcare Finance. 2nd ed. Health Administration Press Publishers Hill, E. (1999). Improve Your ICD-9 Coding Accuracy. Retrieved from www.aafp.org/fpm/1999/0700/p27.html How Do Health Plans Pay Physicians? (n.d.). Retrieved from www.geom.uiuc.edu/usenate/payreport/how.html Statement of Financial Accounting Standards No. 117. (1993). Retrieved from www.fasb.irg/cs/BlobServer?blobcol=udlata&blobtable=MungoBlobs&blobkey=id&blobwhere=1175820923228&blobheader=application/pdf Takagi, G. (2014). Final Treasury Regulations for Charitable Hospitals Released. Retrieved from www.nonprofitlawblog.com/final-treasury-regulations-charitable -hospitals-released/