St. Simon's Hospital, a non-profit entity had the following data for December 2020:Total services provided at hospital billing rates covered by insurance carriers with contracts with hospital3,000,000Covered by insurance carriers without contracts1,000,000Private pay not covered by insurance500,000Charitable care not subject to any billing1,000,000Total services at billing value5,500,000All amounts are payable after November contracted insurance carriers pay an average of 60% of hospital billing rate but usually have no collection risk other than contractual discount insurance carriers without contracts pay an average of 80% of hospital billing rates but has no collection risk other than negotiated discount private patients pay at 100% rates (no discount) but generally do not pay 40% due to lack of payment rather than discounts

7 How much revenue should St Simons report for the month of December_________________________________________________

8 Ultimately, in 2021 after the issuance of December financial statements, insurance carriers without contracts actually wound up paying 70% of hospital billing rates instead of 80% due to more difficult negotiations on rates. This $100K shortfall from expected collections should be recorded as what income statement account and in what year:_________________________________________________

9 Ultimately, in 2021 after the issuance of December financial statements, insurance carriers with contracts actually wound up agreeing to pay 60% of hospital billing rates.However, one carrier, Green Cross Insurers, who had agreed to pay at 60% unexpectedly went bankrupt in March 2021 and was unable to pay the $50,000 they owed. This $50K shortfall from expected collections should be recorded as what income statement account and in what yea?

Answer rating: 100% (QA)

7 The hospital should report revenue of 55 million for the month of December because that is the ... View the full answer