DISCUSSIONS

Financial Policy (graded)

Describe the relationship between financial planning and strategic planning.

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Professor Williams

Charity Care

9:53 PM

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One component of community benefit is charity care-what is this and how is it utilized to a NFP HCO's advantage. How would you go about calculating charity care potentially...try the following problem:

An uninsured patient receives services with charges of $5,000 from a hospital. The hospital staff bills the patient $2,000 and records $3,000 as charity care. If the hospital's ratio of cost to charges is 50%, what amount would the hospital recognize as charity care in Schedule H of IRS Form 990?