Financial Flashcards
What is another name for Profit and loss statement?
Income statement
Spend down sheet
Similar to a check register. Must track your PPD or cost per person per day. If census drops then you have to adjust your spending accordingly.
What is a profit and loss statement or income statement?
Operating budget. Details your income (revenue) and expenses. Monthly checking account statement.
Is produced at the end of each month and is a detail of your financial performance for a given month
Only summarized information because these documents are provided to the investors
What is a balance sheet?
Shows summary for assets, liabilities and capital.
Updated yearly by the CFO
Only summarized information because these documents are provided to the investors
What is a journal?
Financial transactions recorded by date, the date of the invoice, or the check if monies were received.
Separate journals for each type of transaction. Four instance the payroll journal, cash received journals, etc.
Organized by date
What is the general ledger?
Summarizes the debits and credits in the journals and reflects every invoice processed.
With the profit and loss statement and the general ledger you can price together all financial activity in a given month.
The general ledger is the most used financial document by administrators
Organized by vendor or GL code
What is the chart of accounts?
Tells you which GL codes correspond to which expenses. It would be very hard to find anything in the general ledger with out the chart of accounts
Pro forma financials
The time just before you get your preliminary financials is a very stressful time for the administrator. Mistakes are often made by the accounting team so make sure that this statement is correct
What do you do when there are missing invoices on your profit and loss statement?
Pair all of your spend down sheets with the GL and check that all invoices approved were processed for payment. If there are missing invoices alert your accountant to accrue the expense (accrual log) and put aside money from this months revenues to pay for those invoices in future months. That is the accrual system
What are some specific examples of common areas that go of track financially?
1) Labor hours over budget
2) Raw food over budget
3) nursing supplies
4) pharmacy meds
5) equipment rentals
MDS (minimum data set)
Tool used to measure the outcome and effectiveness of the care provided by a nursing home.
Residents must be assessed every quarter and receive a comprehensive assessment annually.
Residents must have a comprehensive assessment within 14 days of admission and care plan must be finalized within seven days of the completion of the MDS.
What is the chief source of revenue for the facility?
Medicare title 18 of the Social Security act
Who is eligible to enroll in Medicare?
Anyone 65 years and older who has paid into the Social Security system for 40 quarters or 10 years
What does RUG stand for?
Resource utilization group
Medicaid rules:
1) medicaid falls under title 19 of the Social Security act
2) individual cannot make more than $1860 per month in pension or other income
3) individual cannot have more than $2000 in assets
4) If one spouse is in a nursing home and the other one is home the other spouse is allowed to keep the house and one car
5) Look back period for Medicaid is five years
What is Medicaid presumption of eligibility?
If the Medicaid office determines that the resident did not qualify for Medicaid, they may still pay for 90 days going back to the date of application because facility provided care in good faith
How is your Medicaid reimbursement rate determined?
The facility submits cost reports at the end of the year to Medicaid that detail the actual revenues and expenses for the year.
The report is due within 90 days from December 31 of the prior year.
Medicaid reimbursement rate is based on your actual costs
Expenditure
Money paid to suppliers and vendors
Revenues
Earnings from operations
Note: revenue is not income
