Author Question: Relationships map and define the way in which data can be extracted from a database. Indicate ... (Read 116 times)

Tazate · **on:** Jul 5, 2018

Relationships map and define the way in which data can be extracted from a database.
Indicate whether the statement is true or false

Question 2

A hospital had capitation agreements with several health maintenance organizations to provide services. The hospital received 12 million of capitation fees for the year.

The hospital also calculated that: (a) its costs to provide these services were 11.8 million; and (b) the value of these services at established billing rates were 16 million. How should the hospital report this information on the face of its financial statements?
a. report 200,000 as a separate item of revenue, labeled net premium revenue.
b. add 16 million to Net patient service revenue, and deduct 4 million in a separate item labeled Adjustment for capitation premiums.
c. report Premium revenue of 12 million as a separate item of revenue, and report cost of serving HMO patients of 11.8 million as a separate item of expense.
d. report premium revenue of 12 million as a separate item of revenue, if significant.