Georgetown Hospital, a Governmental Hospital, Recorded During Its Fiscal Year

question 38

Essay

Georgetown Hospital, a governmental hospital, recorded during its fiscal year ended September 30, gross patient services valued at $15,000,000, excluding charity care services of $1,600,000. However, contractual adjustments by third-party payors amounted to $1,200,000. In May of that year it received donated medical supplies worth $2,000; supplies it had planned to purchase had it not been for the gift. At year-end, the governing board set aside investments in the amount of $500,000 for future plant expansion and $250,000 to be invested with the related earnings used for a special prenatal care program.
1. In its operating statement for the year ended September 30, how much should Georgetown report as net patient services revenue?
2. For the year ended September 30, how should the donation of medical supplies be reported?
3. What amount of unrestricted net position should Georgetown report in its balance sheet as board designated, assuming it had no board designated net position at the beginning of the year?

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Definitions:

Vital Signs

Measurements of the body's most basic functions, including temperature, pulse, breathing rate, and blood pressure, used to monitor or assess health status.

Preventing Infection

Measures and practices designed to prevent the spread of infectious diseases and protect against infection.

Patient Identification

The process of accurately identifying a patient using assigned identifiers to ensure they receive the intended medical treatment.

Mistakes in Surgery

Errors or complications that occur during surgical procedures, potentially leading to negative outcomes for the patient.