Health Care Finance

    Discussion Questions 1.) Dr. Powers operates a single-provider family medical practice. One medical assistant handles appointments, basic bookkeeping functions, and assists with medical records. Two additional medical assistants assist in patient care. The physician’s spouse comes into the office on an irregular basis to prepare the bank deposit. The accountant for the practice has been able to convince Dr. Powers to hire a practice manager, rather than another medical assistant, to manage the increasing workload of the practice. Teresa Ruiz has been hired into the position of practice manager and has arrived for her first day of work. The medical assistant responsible for opening the mail and posting patient payments tells Ms. Ruiz that patient records are up to date on payments received and charges for services, but she has been instructed to only place the cash and checks received into the cash drawer and that Dr. Powers’ spouse would handle the cash from that point. In the cash drawer, Ms. Ruiz finds checks dated over the past 2 weeks, cash far in excess of that needed for daily operations, and dozens of IOUs where Dr. Powers has taken cash from the cash drawer for lunches. What are the appropriate steps for Ms. Ruiz to take to establish reasonable financial controls over the cash handling process?   2.) Mrs. Ivanov comes into the medical facility for a routine office visit. Her copayment is $35, and she hands the cashier a $50 bill. The $50 bill is deposited into, and the $15 change is taken from, which of the following? A.) Petty cash fund B.)Cash drawer C.) Operating checking account D.) Payroll checking account   3.) Johnson’s Carpet Cleaning has completed their monthly cleaning at the medical office and submitted their billing for $200. Payment to Johnson’s is made from the? A.) Petty cash fund B.) Cash drawer C.) Operating checking account D.) Payroll checking account   4.) Drs. Sawyer and Preston operate a medical partnership. An employee has been designated and trained as a cashier, responsible for opening the mail and recording payments received. The cashier also takes payments from patients receiving medical services. The cashier balances the cash drawer, prepares the daily bank deposit, and drops the deposit into the bank’s night deposit at the end of the day. What recommendations would you make to improve internal controls over the cash handling process?   5.) Mr. Alvarez has just been named as the practice manager for a three-doctor urology practice. Mr. Alvarez is reviewing the petty cash fund and notices that there are several hundred dollars in cash as well as IOUs from various employees in the fund. Dr. Singh, the senior partner, tells Mr. Alvarez that the practice allows employees to use cash from the petty cash fund to tide them over until payday. What do you think of this policy?   6.) The office manager of an outpatient facility is responsible for reimbursing employees of the business for miscellaneous purchases. Which cash management tool is being used?   7.) Dr. Bernu wants to save time on accounting needs for the practice. Since this one factor is the largest in the practice, the decision was made to outsource this to a service provider. Which cash management tool is being used?   8.) Senior medical assistant Hannah is responsible for making change for all the cash paying patients at Quonto Diagnostic Center. Which cash management tool is being used?   9.) All of the following would be included in cash and cash equivalents EXCEPT: A.) Petty cash fund B.) Cash drawer C.) Operating checking account D.) Bank certificates of deposit that mature in 2 years   10.) Working in a single-physician medical office, Aaron Hoffman serves as cashier for the office, makes the daily bank deposit, and is responsible for the monthly bank reconciliation. What recommendations would you make to improve internal control in this area?