What is the major purpose of depreciation, and describe at least two ways in which assets can be depreciated. If the ABC Medical group purchased a machine that cost $28,000 and had an estimated useful life of 7 years and an estimated salvage value of $7,000 on January 1, 2009, what would the book value of the asset be at the end of 2010 under the two types of depreciation you described above?

Discuss two requirements of the ACA that have a financial impact on either hospitals or health care systems (please make sure that you write 2-3 sentences on each requirement). Do you believe that the ACA will save the US healthcare system money in the future because of these types of requirements – please justify your answer.

What is the difference between periodic and perpetual inventory tracking? Are there cases where a health care organization could use both methods of inventory costing for different types of inventory, and if so, please explain why they would do this.

You are the administrator of a community hospital that provides inpatient and outpatient services. Your budget anticipates 30,000 inpatient days this year at $650 revenue per day.

Inpatient expenses budgeted at $600 per day

Anticipated 10,000 outpatient visits this year at $400 revenue per visits

Outpatient expenses budgeted at $380 per visit

Actual results:

27,000 inpatient days achieved

$650 revenue per day achieved

110 percent of outpatient visits achieved

$400 revenue per visits achieved

Actual inpatient expenses amount to $16,100,000 and outpatient expenses are $4,000,000

Compare your TOTAL expected budget to TOTAL actual results or performance (calculate budget variances) for ALL hospital services.

HINT: you may want to calculate total revenue less expenses for each category…