Q1.What do you mean by financial management of health care organizations? Identify key elements that are driving changes in health care delivery. (2 Marks)

Q2. The following are account balances (in thousands) for ALLAYAKAHealth Plan. Prepare a balance sheet and statement of operations for the year ended December 31, 2012. (4 Marks)

Net property and equipment

$ 2,000

Accounts receivable

$3,000

Medical claims payable

$37,000

Patient service revenue (net of contractuals)

$ 950,000

Supply expense

$ 255,000

Net assets released from restriction for operations

$ 45, 000

Depreciation expense

$ 35,000

Labor expense

$300,000

Provision for bad debts

$12,000

Net Assets

$61,500

Cash & cash equivalents

$97,000

Long-term debt

$3,500

Q3. What are the major differences in recording transactions for a for-profit organization versus a not-for-profit one, or are there any? (2 Marks)

Q4. What is the difference between the operating margin ratio and a return on total assets ratio? What is the difference between operating revenue per adjusted discharge ratio and operating expense per adjusted discharge ratio? To what categories of ratios do these ratios belong? (2 Marks)