Question
NFP Hospital 1. Gross Charges to Patients were at standard established rates, $5,670,000 (Medicare $1,500,000; Medicaid $900,000; self-pay $100,000; Blue Cross Blue Shield $3,170,000. 2.
NFP Hospital
1. Gross Charges to Patients were at standard established rates, $5,670,000 (Medicare $1,500,000; Medicaid $900,000; self-pay $100,000; Blue Cross Blue Shield $3,170,000.
2. The hospital determined that 1% of the services it provided were to self-pay patients who met the hospital criteria for charity services.
3. The hospital had capitation agreements with several HMOs, wherein the HMOs agreed to pay premiums at the beginning of every month in exchange for the hospitals agreement to provide hospital services to the HMOs members . The hospital received $1,200,000 in cash during the year. However, the interim billin rates called for contractual adjustments of $350,000.
4. Contractual Adjustments: Medicare will be charged 60% of established billing rates; Medicaid at 55% of established rates; Blue Cross BlueShield at 53% of established rates.
5. Collections of patient services accounts receivables totaled $2,907,100.
Requirement: Prepare the journal entries for the above transactions.
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