21.The AICPA
Health Care Guidedoes not require a performance indicator in the financial statements of private sector not-for-profit health care providers.
22.The AICPA
Health Care Guide
prescribes a separate Statement of Operations and Statement of Changes in Net Assets rather than a Statement of Activities.
23.Patient Service Revenue of hospitals is to be presented net of contractual adjustments in the Statement of Operations.
24.Contractual adjustments from insurance companies are reported as expenses in the Statement of Operations.
25.Differences between actual and estimated contractual adjustments are treated as changes in accounting estimates.
26.Charity care is reported as both revenue and expense (bad debt) in the Statement of Operations.
27.Patient service revenue for a hospital does
not
include charges for charity care.
28.The level of charity care is included in revenue and should be disclosed in the notes to financial statements.
29.With respect to health care organizations, expenses must be reported using their natural classifications.
30.Private sector not-for-profit health care entities must disclose expenses by functional classifications, if not provided in the Statement of Operations.