HCA
Accounting Equation
Accounting Period
Accountable Care Organizations (ACO'S)
Accounts Payable
Accounts Receivable
Accrued Expenses Payable
Accrual Accounting
Accrued Revenue
Accumulated Depreciation
Adjusting Entry
Aging Schedule (30-day "bucket" report)
Ancillary Services Revenue
Annualization
Assets
Bad Debt Expense
Balance Sheet (Statement of Financial Condition)
Basic Accounting EquationBond
Capitated Revenue
Cash
Cash Equivalents
Charity Care
Cash Flow Statement
Closing Entry
Compliance
Compound Entries
Contra Asset Account
Contractual Adjustment
Contractual Allowance
Controlling
Cost-Shifting
Credit
Current Assets
Current Liabilities
Debit
Deferred Expenses (Prepaid Expenses)
Deferred Revenue
Depreciation
Documentary Evidence
Electronic Funds Transfer (EFT)
Excess Revenue Over Expenses
Expanded Accounting Equation
Fiscal YearGenerally Accepted Accounting Principles (GAAP)
General Accounting Worksheet
General Ledger
Gross Revenue
Health Care Accounting
Hospital Accounting
Income & Expense Statement (Statement of Operations)
Interest Expense
Interest Income
Internal Controls
Interpretation
Interim Financial Statements
MMournal
Journalizing
Land, Buildings and Equipment (Property, Plant & Equipment)
Leading
Ledger
Liabilities
Liquidity
Long-Term Investment
Long-Term Liabilities
Matching Principle
Net Assets
Net Income
Net Revenue
Noncurrent Assets
Noncurrent Liabilities
notes Payable
Operating Income
Organizing
Owner's Equity
Planning
Posting
Prepaid Expenses
Prospective Payment System
Retained Earnings
Revenue
Routine Services Revenue
Salvage Value
Statement of Cash Flows
Statement of Net Assets
Stockholder's Equity - For Profit
Subsidiary Ledgers
Supply Inventory
T-Account
Tax Exempt Bonds
Trail Balance
Year-To-Date (YTD)
Assets = Liabilities + Net Assets (for not-for-profit entities)
Typically represents economic resources that the entity owns, measured in conformity with GAAP.
The financial obligations not due within one year.
D)
Equivalent to excess of revenue over expenses for a not-for-profit entity.
E)
Combination of authoritative standards and the commonly accepted ways of recording and reporting accounting information.
Also referred to as Plant, Property and Equipment, this consists of the original acquisition costs of tangible plant assets used in hospital operations.
Ledgers other than the general ledger that include the accounts receivable subsidiary leger (or "patient's ledger"), the accounts payable ledger, the plant assets subsidiary ledger, and others.
Consists of short-term borrowings by the hospital from banks and other financial institutions. These debts usually are in the form of promissory notes issued by the hospital to the lender.
In for-profit institutions, the difference between assets and liabilities.
A commonly used phrase that refers to the Statement of Operations, Operating Budget, or actual or budgeted revenue, expense or volume statistics through a given period of time in the fiscal year.
The difference between what a hospital bills (full charge) and what it is actually paid by Medicare or Medicaid.
An entry or balance on the right side of an accounting record. A credit means an increase only with respect to liabilities, net assets and revenue accounts, while a credit to any other account (assets or expenses) is a decrease.
V) An electronic transfer of funds by a payor into a provider's account to pay for health care services.
A form of long-term financing whereby an issuer receives cash from a lender (an investor), and in return issues a promissory note (a bond) agreeing to make principal or interest payments on specific dates.
Free or discounted care provided to indigent patients when the patient's status of being indigent is known at time of registration or admission, and the patient meets the healthcare organization's charity care policy.
Accounting method that depicts the effects of transactions, and other events and circumstances on a reporting entity's economic resources and claims in the periods in which those effects occur, even if the resulting cash receipts and payments occur in a different period.
An obligation to pay off a short-term debt to creditors or suppliers for merchandise and services purchased from them but for which the hospital has not yet paid. It appears on the balance sheet under current liabilities.
An account form in the shape of the letter "T" whereby the left side of the account is used for recording debits and the right side of the account is used for recording credits to the account.
The process of transferring accounting data from the journal to the ledger.
The amount of cash to be received when an asset (e.g. equipment) is sold, usually at the end of its useful life.
Assets = Liabilities + Net Assets or Assets - Liabilities = Net Assets or Assets = Liabilities +
Net Assets + Revenues - Expenses or Assets + Expenses = Liabilities + Net Assets +
Revenues
The table that shows the percentage (or gross dollar value) of receivables outstanding by the month (or 30-day period) they were incurred or have aged to.
# A measure of how quickly an asset can be converted into cash.
Efforts made by accountants and other healthcare leaders to analyze and evaluate reported information so that it may be better understood and more easily used by decision makers.
Mechanisms, rules, and procedures implemented by a company to safeguard its assets, check the accuracy and reliability of its accounting data, and ensure the integrity of an organization and its compliance to prescribed rules, regulations and policies, typically with a focus on financial reporting and accounting The collection, organization, reporting, presentation, interpretation, and communication of historical, current and projected statistical and financial information and operating results of a hospital enterprise, for purposes of evaluation, planning and decision-making by management and other interested parties.
A period of time - such as one month, a calendar quarter, a calendar year of a fiscal
year - in which financial statements are prepared and reported.
Also called Provision for Bad Debts, it is an estimate of patient accounts receivable that
will not be collected.
Also known as Accrued Liabilities, these are liabilities for expense (employee salaries & wages for example) that have been incurred by the hospital but for which the hospital has not yet paid.
A system that pays providers a specific amount in advance to care for the health care needs of a population over a specific time period.
Entries that have more than one debit or credit.
A measure of the extent to which a tangible asset (such as plant or equipment) has been used up or consumed.
The organization's pre-determined 12-month period of time in which it bases its accounting year and annual financial statements on.
Financial statement used to report the basic reasons for the changes in the organization's short-term balance sheet cash.
Expense items such as insurance, interest, and rent that have been paid in advance.
These items are assets in the sense that their prepayment will provide future benefits (e.g. insurance protection, use of borrowed money, use of space or leased equipment) to the hospital.
1 Financial statement used to report the summary reasons for the changes in the net assets.
*The resources of the organization that will be used or consumed over periods longer than one year.
The financial obligations (e.g. debts) of an organization.
An accounting record that documents the debit and credit analysis or affect of a transaction or activity.
Also referred to as Gross Charges, it is revenue that is calculated at 100% of full charges, and does not account for contractual allowance, contractual discounts, bad debts, or charity care.
Accounting for revenues in a given period (month, quarter, or year) and matching with the corresponding expenses incurred in earning that revenue.
A report showing the financial activities of an organization or individual. This report summarizes the revenues, expenses, and income for an organization over a specified period of time (a month, quarter, or year). Also called the Statement of Operations.
A payment to creditors, those who have loaned the organization funds or otherwise extended credits.
A patient-centered, population-based health care organization comprising of various providers (most notably hospitals, primary care physicians, and specialists) and suppliers of services covered by Medicare.
Also called a Statement of Financial Position, it describes the organization's assets, liabilities, and net assets at a specified point in time - usually the end of the accounting period (month, quarter or year).
Reimbursement methodology used by Medicare that establishes rates and prices before services are rendered. This payment system reimburses providers on a predetermined amount.
Bookkeeping worksheet in which the balance of all ledgers are compiled into debit and credit account column totals that are equal (or should be equal). A company prepares a trial balance periodically, usually at the end of every reporting period, to help detect any errors in the posting of accounts.
Excess of revenue over expenses, which separates revenues earned through health care-related activities and those earned from other than health care-related activities (nonoperating).
Money on hand and in bank checking accounts maintained by the hospital.
Payment that has been received in advance but not yet earned and that confers an obligation to provide or deliver goods or service in the future.
An entry or balance on the left side of an accounting record. A debit means an increase
only with respect to assets and expenses, while a debit to any other account (liabilities, net assets, and revenues) is a decrease.
Assets that are available to be used or consumed within one year.
Shows the sources and uses of cash using the accrual basis of accounting. This statement reconciles the change in the cash balance during the period to net income during the period.
The balance of money due the hospital from patients and their third-party payers for service provided to them but for which the hospital has not yet been paid.
Reflects the amount of plant asset costs consumed by the use of the assets and treated as an operating expense of the hospital during the time that has elapsed since the assets were acquired. This equals the total amount of depreciation taken on an asset since it was put into use.
The process of following rules, regulations, industry guidelines and best practices in regard to administration and operation of a health services organization including patient care, billing, information systems/protected health information, fraud and abuse, financial reporting, etc.
The concept that private payers bear a larger share of the overall cost to provide care for a given patient population, or that these payers effectively subsidize the cost of care for the uninsured, governmental insurance plans and other safety net programs.
Financial obligations due within one year.
Accounting document that contains a separate account page(s) for each account listed in the chart of accounts. Transaction data from the Journal is then posted to the appropriate ledger account by a process called posting, providing a summarized listing according to account classification so that all recorded increases and decreases in each account are brought together to permit the determination of individual account balances at the end of the accounting period. The process of making records of transactions in a journal. It consists of a formal recorded analysis of the increase and decrease effects of transactions on the specific account classifications provided in the chart of accounts.
The process of making records of transactions in a journal. It consists of a formal recorded analysis of the increase and decrease effects of transactions on the specific account classifications provided in the chart of accounts.
If The cost of governmental or corporate securities that the hospital owns and intends to
hold for a period of time in excess of one year.
Also referred to as Non-Current Liabilities, these are financial obligations that will not be satisfied by the hospital in the near future (a year or less) such as mortgage loans, long-term borrowings or hospital bonds.
The assets of an entity that remain after deducting its liabilities.
Also referred to as Net Charges, it is gross revenue or total charges less contractual allowances, bad debt, charity care and other withholdings such as governmental sequestration.
MMM/ The portion of profits an organization keeps for itself to use for growth and in
support of its mission.
In an investor-owned entity, the residual interest in the assets of the entity that
remain after deducting its liabilities.
The cost of food, office supplies, drugs, and medical supplies purchased by the hospital but not yet used or consumed.
Bonds whose interest payments to the investor are exempt from federal income taxes, and in some cases state and local income taxes as well; thus, the interest payments are typically lower than those from bonds that do not have tax-exempt status.
Revenue that the hospital has earned but for which the hospital has not recorded a receivable or collected cash.
A necessary correction accomplished by journalizing and posting.
Hospital revenue generated through the provision of laboratory and diagnostic testing.
Using less than 12-months of actual statistics, volume or financial information to project the corresponding 12-months period of time (usually for a calendar or fiscal year period) by calculating the average monthly amount and multiplying by 12.
Entries made in the hospital's journal and posted to the ledger to close the nominal (temporary) accounts of revenue and expense for the respective accounting period, along with the revenue and expense summary adjustment to the hospital net assets account for to the balance sheet.
Financial statements that are produced and issued during the course of the fiscal year (and subject to audit).
WWW Motivating and inspiring others to work hard to achieve organizational goals.
A worksheet used to classify and segregate/organize the trial balance figures according to the financial statements in which they will be presented.
Income earned/generated by the hospital from an investment.
Revenue earned/generated from the room charges for hospital inpatients. These charges cover room, food, nursing care, bed linens, and basic supplies provided in the patient room.
Economic values earned/generated through the provision of services and the sale of products.
To determine a goal and a means to achieve it.
Deciding where decisions will be made, who will do what jobs and tasks, and who will work with or for whom.
Short-term investments that are highly liquid, readily marketable, and convertible into definitely known amounts of cash in three months or less.
Monitoring progress towards goal achievement and taking corrective action, as needed.
Assets + expenses = liabilities + net assets + revenue
Also referred to as net income, this is when total revenue exceed total expenses
on the statement of operations.
Documentation of various forms that substantiate or provides physical evidence or a record of the basic/essential details of a business transaction.
Expenditures that have been made for goods and services but not yet consumed or used.
A negative asset account.
Hospital revenue deductions (discounts off full charges) as agreed to in writing with third party payers.