Reimbursement System

Question 1

2,000–2,500 words including title page and references

You have been placed on a committee in your health care organization. The committee has to create a set of cost containment strategies that will positively impact (decrease) operating expenses. The committee is also challenged with increasing reimbursement.

• Provide 5 cost-cutting strategies that the committee could recommend to the executive board.
  • Describe how these cuts will benefit patient care or business systems.
• Provide 5 ideas on how to increase revenue or reimbursement. This answer can include short-term and long-term goals.
  • Describe how these revenue or reimbursement systems benefit patient care or the business systems.

Provide at least 2 references that reinforce the strategies you have chosen.

Question 2

Hopper Inc. follows the balance sheet approach in preparing its allowance for doubtful
accounts (AFDA). The opening AFDA balance as at January 1, 20X3, was a credit of
$8,700. During the 20X3 fiscal year, a total of $7,860 was written off as uncollectible for the
year and a total of $650 in previously written-off accounts was recovered.
Hopper has the following accounts receivable balances as at December 31, 20X3,
including a breakdown of the percentage estimated by management to be uncollectible:
Days outstanding Balance % estimated to be
uncollectible
0-30 days $480,520 0.5%
31-60 days 187,600 1.8%
61-90 days 77,250 2.5%
Greater than 91 days 38,760 4.5%
What is the total amount of bad debt expense that Hopper needs to record for the
December 31, 20X3, fiscal year? Round to the nearest dollar.
a) $7,860
b) $7,965
c) $9,455
d) $10,945