Implications for Hospital Financial Reporting
Article Abstract:
In 1982, the Financial Accounting Standards Board issued SFAS No.62 entitled 'Capitalization of Interest Cost in Situations involving Certain Tax- Exempt Borrowings and Certain Gifts and Grants' which had implications for hospitals because most capital projects are funded by tax-exempt borrowing. Some major changes from the former SFAS No.34 are included in SFAS No.62. It states that whenever assets are partially funded from gifts or grants, capitalization of interest cost is not appropriate. Because borrowed funds are often initially invested, net interest cost is appropriate for capitalization as there are offsetting interest income. The capitalization period is extended for qualifying assets. The effect is that the capital asset to debt ratio is higher, when a lower rate is desirable. Disclosure is required for organizations that enter into tax-exempt borrowing arrangements or receive gifts and grants with the purpose of acquiring qualifying assets after August 31, 1982.
Publication Name: Healthcare Financial Management
Subject: Health care industry
ISSN: 0735-0732
Year: 1984
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Microcomputers Take the Challenge of the Hospital Environment
Article Abstract:
A survey of St. Louis, Missouri, hospitals is discussed. This survey attempts to identify microcomputer use in the area hospitals. The survey was conducted by Washington University and the Hospital Association of Metropolitan St. Louis. Tables provided include: 1) computer use-facility size, 2) computer locations and 3) survey response. Another area of discussion is the advantages and disadvantages of microcomputer use in hospitals.
Publication Name: Healthcare Financial Management
Subject: Health care industry
ISSN: 0735-0732
Year: 1984
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Saving Time and Money with Microcomputers
Article Abstract:
A microcomputer program for a California multi-hospital system is discussed. This system, called Mini Max, is designed to handle Medicare reimbursement. The capability and flexibility of the Mini Max system is examined. The Mini Max is responsible for saving an institution money by: 1) reducing time in obtaining financial information, 2) bypassing the use of programmers in certain instances and 3) developing new models.
Publication Name: Healthcare Financial Management
Subject: Health care industry
ISSN: 0735-0732
Year: 1984
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