Q1 Financial accounting statements are critically important management tools providing management with ongoing financial information to operate the healthcare entity successfully. Explain the relationship between the balance sheet and the income/expense statement, and how a healthcare leader should use the data contained within these statements to manage the operation. Also, explain the purpose and value of the statement of cash flows.

Q2 Cash basis and accrual are two forms of accounting used by healthcare entities. Explain the difference between these two accounting formats. Which accounting methodology would be used by a hospital and which would be used by a small medical practice? Do these accounting protocols change the preparation of financial accounting statements? Which protocol requires auditing and a formal report by the auditing accounting firm?

Q3: Discuss how Medicare and Medicaid reimbursement rates are calculated for facilities and medical providers.

Q4 The Patient Protection and Affordable Care Act of 2010 created Accountable Care Organizations (ACOs), which have brought about the concept of value-based purchasing, and the aligned concept of pay-for-performance. Do these concepts include adjustments for disparities and diversity?

Q5 Apart from Medicare and Medicaid, most reimbursement is made through various managed care contracts. As a healthcare leader what financial data would you need to successfully review to determine if a managed care contract will reimburse you at an acceptable reimbursement rate?