Some healthcare providers offer these patients a sliding scale so they can pay what they can afford. However, these payments are below cost. What are some other factors that can create issues for the financial accounting within health care organizations?
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As noted in your assignment, healthcare organizations suffer a variety of issues resulting in financial accounting difficulties. Besides charitable contribution for patients unable to pay for services other problems exist. Most notably, is being underinsured. The underinsured patient will have insurance coverage inadequate to meet services need. In many cases, these same patients will also lack personal resources to pay additional fees. Decisions must be made as to how this type of financial burden with be handled by the healthcare facility.
Another area creating financial accounting issues is found in the supply chain. Healthcare facilities must operate under well-designed budgets. However, unexpected changes in supply cost will create accounting issues. For example, Company A provides surgical supplies for the facility. A contract has been signed between the two businesses …
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