Accounting-Course Syllabus ACC561

| January 30, 2017

Question
Course Syllabus
ACC561
Accounting in Healthcare
Course Start Date: 1/11/2011
Course End Date: 2/21/2011

Please print a copy of this syllabus for handy reference.
Whenever there is a question about what assignments are due, please remember this syllabus is
considered the ruling document.

Copyright
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Edited in accordance with University of Phoenix© editorial standards and practices.

Facilitator Information

Michael Marshall
thedane@email.phoenix.edu (University of Phoenix)
mstangmike@cox.net (Personal)
918-902-4310 (CST)
Facilitator Availability
I am available from 9 a.m.-9 p.m. Central Time on most days, but I attempt to reserve Sunday for my
family. During the week, I am online most of the time during that 4 p.m.-12 a.m. time frame.
On Saturdays, I tend to be online in the morning only. If these times are not convenient for you, please let
me know. I will be happy to accommodate your schedule, if possible. I provide you with these times to
make it easier to communicate with me, and not to limit our contact.
I want you to know that, should you need to contact me outside these time frames, you should not
hesitate to do so.
For emergencies, when you are not able to gain access to messages on the Online Learning System
(OLS), please send a message to my personal email address. In the event a third party needs to contact
me, please direct them to my contact information listed under "facilitator information." No third party
should use your login credentials to gain access to the classroom.

Where to Go to Class
Main: This is the main forum for the class and is where discussion is conducted. It has read-and-write
access for everyone.
Chat-Room: This is a read-and-write access forum. It is designed as a place to discuss issues not related
to the course content. This is the forum to which we will send our bios.
Course-Materials: This is a read-only forum, which means you can read messages here but cannot send
any. This is where I will post the course syllabus and materials.
Learning-Team-A, B, C, D, E and F: These six Learning Team forums will be used as workrooms for
the learning teams. You will be assigned to one of these learning teams.
Individual Forum: You will see one forum with your name on it. This is a private forum, shared only by
you and me, the facilitator. Your classmates will not have access to this forum. This is where you will post
your individual assignments, and where I will post your feedback. You can also ask questions here.
However, if you have general questions about instructions of assignments, please post those in the Main
forum, since other students may benefit by that exchange as well.

Policies
For class policies, please see the Policies link on the left side of the Materials page for the course on
eCampus. Faculty and students/learners will be held responsible for understanding and adhering to all
policies contained within that link. University policies are subject to change so please be sure to read
them at the beginning of each class as it may have changed since your last class. Policies may be slightly
different depending on the modality in which you attend class. If you have recently changed modalities it
is important you read the policies governing your current class modality.

Late Assignments

Late assignments receive a 10% deduction for each day they are late if assignments are not posted by
11:59 p.m. M.S.T. on the day they are due. Assignments more than 1 day late will not be accepted.
Technological issues are not considered valid grounds for late assignment submission. In the event of a
University of Phoenix server outage, students should submit assignments through email to the instructor
and post to the individual forum when systems are restored. Unless an Incomplete grade has been
granted, learner assignments submitted after the last day of class will not be accepted.

Learning Teams
University of Phoenix students are expected to work effectively in diverse groups and teams to achieve
tasks. They must collaborate and function well in team settings as both leaders and followers. They
should respect human diversity and behave in a tolerant manner toward colleagues and peers. If you
experience difficulties working with your team, you are expected to resolve them within the team if
possible. However, please feel free to contact me for guidance if you have concerns in this area. Because
Learning Team projects are outcome-based, all members of your Learning Team will generally earn the
same grade for Learning Team projects. However, I reserve the right to report different grades for
different Learning Team members if I see a substantial imbalance in individual contribution. Learning
Teams should provide a brief summary of any communication held outside the forum. Therefore, if you
hold conference calls, work in a real-time chat room, or get together outside the OLS (Online Learning
System) environment in another way, please post a log, transcript, or summary in the Learning Team
forum. Further, do not use any of these supplementary communication tools unless everyone on your
Learning Team agrees to the method and to the schedule. If you have any questions, please contact me.
Several of the assignments in this class will be completed in Learning Teams of three to five students. I
will set up these teams by the end of Week 1. If you have any requests for teammates, please let me
know by Thursday of the first week via your Individual Forum. Learning Team Charters and Peer
Evaluation forms are required. Please see the instructions in the weekly sections for more information. All
Learning Team assignments must be submitted to the Learning Team forum.
It is expected that you will actively participate with your learning team and contribute to the team
discussions by a) contributing original work that is accepted and used by the team with proof of originality
b) participating in the project from assignment organizing through meaningful final review of the team
project for submission, and c) ensuring to your team that your contributions are your original work and
properly quoted, cited, and referenced.

Technical Support
Technical Support is available 24 hours a day, 365 days a year. Call 1-877-832-4867, or use the e-mail
support form.
Answers to the most common issues are found in the Knowledge Base by clicking Help, found at the top
of every student Web site.

Feedback
Each week, I will provide grades or scores and comments on assignments within 6 days of when they
were submitted. I will send feedback to your Individual forum. After I send feedback each week, I will
post a notification in the Main forum.

Grading Formula

Points

Grade

95+

A

90-94

A-

87-89

B+

84-86

B

80-83

B-

77-79

C+

74-76

C

70-73

C-

67-69

D+

64-66

D

60-63

D-

<59

F

Course Description
See eCampus.

Course Topics & Objectives
See eCampus.

Course Materials
See eCampus.

Point Values for Course Assignments
ASSIGNMENTS

Points

Individual (70%)
(Week 1) Individual Assignment: Happy Hospital
Scenario

10

(Week 2) Only Learning Team Assignment this week.

0

(Week 3) Individual Assignment: Break-Even Analysis

15

(Week 4) Individual Assignment: Preparing the Budget

0

(Week 5) Individual Assignment: Cost Allocation
Assignment

10

(Week 6) Only Learning Team Assignment this week.

0

Participation/Discussion Questions/Weekly Summaries (3
points per week)

18

Learning Team (30%)
(Week 1) Only Individual Assignment this week.

0

(Week 2) Learning Team Assignment: Financial
Statement Analysis

12

(Week 3) Only Individual Assignment this week.

0

(Week 4) Learning Team: Preparing the Budget

15

(Week 5) Only Individual Assignment this week.

0

(Week 6) Learning Team Assignment: Clinic Performance
20
Evaluation and Presentation
Total

100

Week One
Decision Making in the Healthcare Environment


Explain the role of budgets and performance reports of management in the health care industry.
Evaluate the role of ethics in accounting decision making.
Evaluate relevant accounting information for business decision making in the health care industry.

Course Assignments
1. Readings





Read Ch. 1 of Accounting Fundamentals.
Read Ch. 2 Accounting Fundamentals.
Read Ch. 17 of Accounting Fundamentals.
Read Ch. 1 of Essentials of Cost Accounting.
Read Ch. 2 of Essentials of Cost Accounting.
Read this week’s Electronic Reserve Readings.

2. Discussion Questions

Complete Exercise 1 on p. 10 (Ch. 1) of Essentials of Cost Accounting.
Complete Exercise 6 on p. 10 (Ch. 1) of Essentials of Cost Accounting.

3. Individual Assignment: Happy Hospital Scenario

Read the Happy Hospital Scenario in Ch. 17 of Accounting Fundamentals.

Write a 700-word paper explaining the following:
o

How could Happy Hospital use budgets and performance reports in the decision-making
process?

o

How must ethics influence their accounting decisions?

o

What accounting information is most relevant for Happy Hospital to consider when making
decisions?

Include citations—one dealing with ethics in accounting—and at least two references other than
the texts in your paper where appropriate.

Format your paper according to APA standards.

Post your assignment as a Microsoft® Word attachment.

Weekly Reminders
Weekly Summaries
Weekly summaries will be required in this course and counted as class participation.
Discussion Questions

Discussion question responses will count towards the class participation requirement.
Participation
All Week: Remember to participate in the class discussions 4 out of 7 days during the week.
Summary of Week 1 Deliverables
Assignment

DQ:1 Complete Exercise 1 on p. 10
(Ch. 1) of Essentials of Cost
Accounting.

Individual or
Learning
Team

Location

Due

Individual

Week 1 Discussion
Questions Thread

Wednesday

Individual

Week 1 Discussion
Questions Thread

Sunday

Individual Assignment: Happy Hospital
Scenario

Individual

Individual Forum

Monday

Weekly Summary

Individual

Weekly Evaluations
Thread

Monday

Learning Team Charter

Team

Team Leader’s
Individual Forum

Monday

DQ:2 Complete Exercise 6 on p. 10 (Ch.
1) of Essentials of Cost Accounting.

Week Two
Financial Statements


Apply the concepts, techniques, and conventions of basic financial accounting to a health care
organization.
Identify how measurement conventions in the health care industry affect financial reporting.
Determine the relationships between the elements of the financial statements.

Course Assignments
1. Readings






Read Ch. 3 of Accounting Fundamentals.
Read Ch. 4 of Accounting Fundamentals.
Read Ch. 12 of Essentials of Cost Accounting.
Read Ch. 17 of Essentials of Cost Accounting.
Review the International Accounting Standards Board (IASB) Web site:
http://www.iasb.org/Home.htm
Review the American Institute of Certified Public Accountants (AICPA) Web site:
http://www.aicpa.org
Review the Financial Accounting Standards Board (FASB) Web site: http://www.fasb.org/

2. Discussion Questions

Complete Exercise 4 on p. 281 (Ch. 12) of Essentials of Cost Accounting.
Complete Exercise 2 on p. 373 (Ch. 17) of Essentials of Cost Accounting.

3. Learning Team Assignment: Financial Statement Analysis
• Choose two health organizations as a Learning Team. One company may be Happy Hospital
from Ch. 17 of Accounting Fundamentals. Compute the quick and current liquidity ratios, the
DuPont ratio, profit margin, asset utilization, and financial leverage of each of the two
companies.
• Write a 1,050-word paper discussing how differences in the industries and different
measurement conventions affect presentations. If one of the companies uses the cash basis
of accounting, how would that differ from the accrual basis?
• Address the following in your paper:
o
o

How might changing one of the financial statements affect the other financial statements?

o

In what ways do the elements of the financial statements interact with one another?

Why is it essential to understand the relationship between the financial statements?

Format your paper according to APA standards.
Post your assignment as a Microsoft® Word attachment.

Weekly Reminders
Weekly Summaries

Weekly summaries will be required in this course and counted as class participation.
Discussion Questions
Discussion question responses will count towards the class participation requirement.
Participation
All Week: Remember to participate in the class discussions 4 out of 7 days during the week.
Summary of Week 2 Deliverables
Assignment

Individual or
Learning
Team

Location

Due

DQ:1 Complete Exercise 4 on p. 281 (Ch.
12) of Essentials of Cost Accounting.

Individual

Week 2 Discussion
Questions Thread

Wednesday

DQ:2 Complete Exercise 2 on p. 373 (Ch.
17) of Essentials of Cost Accounting.

Individual

Week 2 Discussion
Questions Thread

Sunday

Learning Team Assignment: Financial
Statement Analysis

Learning
Team

Team Leader’s
Individual Forum

Monday

Weekly Summary

Individual

Weekly Evaluations
Thread

Monday

Week Three
Cost Behavior



Evaluate how cost behavior affects selection of cost drivers and health care’s management
decisions.
Analyze the cost-volume-profit relationships to predict effects of changes in sales or costs,
including the breakeven sales volume.
Compare and contrast the different methods of measuring cost functions in the health care
industry.
Explain how cost accounting systems are used in the health care industry to determine the cost of
a product, service, customer, or other cost objective.

Course Assignments
4. Readings




Read Ch. 6 of Accounting Fundamentals.
Read Ch. 7 of Accounting Fundamentals.
Read Ch. 4 of Essentials of Cost Accounting.
Read Ch. 5 of Essentials of Cost Accounting.
Read Ch. 6 of Essentials of Cost Accounting.

5. Discussion Questions

Complete Exercise 4 on p. 94 (Ch. 5) of Essentials of Cost Accounting.
Complete Exercise 1 on p. 113 (Ch. 6) of Essentials of Cost Accounting.

6. Individual Assignment: Break-Even Analysis
The Beach Street office of Getwell Clinics specializes in the treatment of three types of patients:
DRG M, DRG J, and DRG P. The operating statistics for patient care of these three DRGs for last
year are shown below. They include patient volume proportions, average charges, average
variable costs, and the amount of specific fixed costs assignable to each DRG. In addition, the
satellite office had joint fixed costs last year of $240,000.
Getwell Clinics Operating Statistics
DRG
M
J
P

Proportion
50%
30%
20%
100%

Charge
$1,700
2,600
900

Variable
Cost
$1,000
1,200
600
Joint Fixed Costs

Fixed Cost
$500,000
280,000
110,000
830,000
$1,720,00
0

Doctor Barkley, newly appointed director of the satellite office, has requested that you determine
the breakeven points for each DRG. Dr. Barkley also wants to know which DRG would be the
most profitable to promote in growing the practice. A recent time study showed that procedures
involved in each DRG took the following time: DRG M, 2 hours; DRG J, 5 hours; and DRG P, 1
hour.

Prepare a formal and comprehensive response to Dr. Barkley that demonstrates understanding
of the Week Three objectives.
o

Explain the relevance of DRG analysis as a tool that drives costs and affects
management decisions in healthcare.

o

Calculate the breakeven points, in numbers of treatments, for each type of DRG, using
the weighted average contribution margin approach.

o

Propose your recommendations that answer the following questions:

Which DRG must be promoted in an advertising program if the office has excess
capacity? Explain why.

Which DRG must be promoted if the office is almost at maximum capacity in terms of
available hours? Explain why.

What rationale may be used to support the use of DRGs as an approach to allocating
costs?

Weekly Reminders
Weekly Summaries
Weekly summaries will be required in this course and counted as class participation.
Discussion Questions
Discussion question responses will count towards the class participation requirement.
Participation
All Week: Remember to participate in the class discussions 4 out of 7 days during the week.
Summary of Week 3 Deliverables
Assignment

Individual
or
Learning
Team

Location

Due

DQ:1 Complete Exercise 4 on p. 94 (Ch. 5)
of Essentials of Cost Accounting.

Individual

Week 3 Discussion
Questions Thread

Wednesday

DQ:2 Complete Exercise 1 on p. 113 (Ch.
6) of Essentials of Cost Accounting.

Individual

Week 3 Discussion
Questions Thread

Sunday

Break-Even Analysis

Individual

Individual Forum

Monday

Weekly Summary

Individual

Weekly Evaluations
Thread

Monday

Week Four
Budgets


Examine the budgeting process for capital, operational, and facility funding.
Explain the benchmarking process and how it is used to make decisions in the health care
industry.
Analyze budget performance, corrective actions, and evaluate the impact on health care.

Course Assignments
7. Readings



Read Ch. 9 of Accounting Fundamentals.
Read Ch. 10 of Accounting Fundamentals.
Read Ch. 13 of Accounting Fundamentals.
Read Ch. 8 of Essentials of Cost Accounting.

8. Discussion Questions

Complete Exercise 10 on p. 189 (Ch. 8) of Essentials of Cost Accounting.
Complete Exercise 15 on p. 189 (Ch. 8) of Essentials of Cost Accounting.

9. Team Assignment: Preparing the Budget
Assume you are the financial director of a clinic that is a part of an organization named Getwell
Clinics Incorporated. Your clinic—named after you—serves a suburban community with a
population of about 24,000, of which 25% are expected to become patients of the clinic. Each
patient is expected to average five visits per year. Assume that visits occur evenly throughout the
year. The average physician’s salary is $11,000 per month. The current practice is fee-for-service
and includes Medicare and nonMedicare patients. The clinic has been approached by several
HMOs to provide services to their enrollees, but the board of directors has decided to defer
participation until year 2015.
After adjustments and allowances, average charges are $50 per visit. You believe that patient
receivables are too high. You expect to improve collections, resulting in a balance of $220,000
patient receivables at the end of the year.
The flexible budget for operating costs for the clinic is as follows:
Operating Costs

Nurses’ salaries
Administrative and technical salaries
Medical supplies
Rent
Service bureau for medical and financial records
Other operating expenses

Variable
Expenses
per Visit
0
0
$6.00
0
$1.00
$3.00

Fixed
Expenses per
Month
$18,000
$19,000
0
$4,000
$2,000
$6,000

Planned purchases of medical supplies are $16,000 per month. Supplies are paid in the month
following purchase. Service bureau expenses are paid in the month following service. All other
expenses are paid in the month of incurrence.
During year 2015, your clinic plans to purchase $80,000 worth of equipment, which will
depreciate on the straight-line basis over 5 years. A $75,000 line of credit has been arranged at
the bank if needed. Assume a desired minimum cash balance of $10,000. You may assume that
interest on any amounts borrowed is already considered in other operating expenses.
The statement of financial position at the end of 2015 follows:
Your Clinic – December 31, 2015

Assets
Cash
Patient Receivables
Supplies
Total
Equities
Accounts Payable: Supplies
Accounts Payable: Service Bureau
Total Liabilities
Partners’ Equity
Total Equities

$20,000
240,000
8,000
$268,000

$6,000
4,000
$10,000
258,000
$268,000

Propose a new service or product to be implemented. Cost will be $80,000 for equipment as
described above. Write a proposal that includes the proposed budget for the next 6 years.
Your proposal must

o consider the three principal benchmarks referenced on p. 105 (Ch. 13) of Accounting
Fundamentals; explain which benchmarking data you anticipate being the best approach
to evaluate your proposed budget and why.

Weekly Reminders
Weekly Summaries
Weekly summaries will be required in this course and counted as class participation.
Discussion Questions
Discussion question responses will count towards the class participation requirement.

Participation
All Week: Remember to participate in the class discussions 4 out of 7 days during the week.
Summary of Week 4 Deliverables
Assignment

DQ:1 Complete Exercise 10 on p. 189 (Ch.
8) of Essentials of Cost Accounting.

Individual
or Learning
Team

Location

Due

Individual

Week 4 Discussion
Questions Thread

Wednesday

Individual

Week 4 Discussion
Questions Thread

Sunday

Preparing the Budget

Learning
Team

Individual Forum

Monday

Weekly Summary

Individual

Weekly Evaluations
Thread

Monday

DQ:2 Complete Exercise 15 on p. 189 (Ch.
8) of Essentials of Cost Accounting.

Week Five
Cost Allocation


Explain the methods of cost allocation.
Analyze the affect of overhead and how cost centers are determined.
Compare and contrast uses of fixed and variable costing.

Course Assignments
10. Readings




Read Ch. 11 of Accounting Fundamentals.
Read Ch. 12 of Accounting Fundamentals.
Read Ch. 4 of Essentials of Cost Accounting.
Read Ch. 9 of Essentials of Cost Accounting.
Read Ch. 10 of Essentials of Cost Accounting.

11. Discussion Questions

Complete Exercise 7 on p. 225 (Ch. 9) of Essentials of Cost Accounting.
Complete Exercise 7 on p. 251 (Ch. 10) of Essentials of Cost Accounting. Explain your
answer.

12. Individual Assignment: Cost Allocation Assignment


Complete Problem 1 under the problem section on p. 251 (Ch. 10) of Essentials of Cost
Accounting.
Answer the following questions regarding the scenario in Problem 1:
o
o
o

What methods of cost allocation were used?
How were cost centers determined?
How would fixed and variable costing differ in this situation?

Weekly Reminders
Weekly Summaries
Weekly summaries will be required in this course and counted as class participation.
Discussion Questions
Discussion question responses will count towards the class participation requirement.
Participation
All Week: Remember to participate in the class discussions 4 out of 7 days during the week.
Summary of Week 5 Deliverables

Assignment

DQ:1 Complete Exercise 7 on p. 225 (Ch.
9) of Essentials of Cost Accounting.

Individual
or
Learning
Team

Location

Due

Individual

Week 3 Discussion
Questions Thread

Wednesday

Individual

Week 3 Discussion
Questions Thread

Sunday

Individual Assignment: Cost Allocation
Assignment

Individual

Individual Forum

Monday

Weekly Summary

Individual

Weekly Evaluations
Thread

Monday

DQ:2 Complete Exercise 7 on p. 251 (Ch.
10) of Essentials of Cost Accounting.
Explain your answer.

Week Six
Performance Management


Evaluate how managers use control systems to achieve organizational goals.
Evaluate the health care revenue cycle and how it affects performance management.
Compute return on investment, residual income, and economic value added.

Course Assignments
13. Readings



Read Ch. 14 of Accounting Fundamentals.
Read Ch. 15 of Accounting Fundamentals.
Read Ch. 16 of Accounting Fundamentals.
Read Ch. 17 of Accounting Fundamentals.

14. Discussion Questions

Discuss how control systems may be used by management to keep a project moving forward.
What elements of the project must be included in a control system? Can you think of an
instance when a control system might become a problem for a project? Explain why or why
not.

How might financial ratios be used to effectively manage a health care system?

15. Learning Team Assignment: Clinic Performance Evaluation and Presentation
During year 2015, the following actual events were recorded for the Getwell Clinics. A
comprehensive budget for 2015 was prepared in Week Four.
1. Patient visits amounted to 28,000 in 2015 with an average billing rate of $48 per patient visit.
2. Expenses for 2015 were as follows:

Expenses
Physician’s salaries
Nurses’ salaries
Administrative and technical salaries
Medical supplies
Rent
Service bureau (fixed portion, $24,000)
Other expenses (fixed portion, $70,000)
Depreciation

$552,000
195,000
198,000
159,000
48,000
52,000
158,000
16,000

3. At the end of the year, payables for supplies were
$10,000, payables for the service bureau were $2,500,
inventory of supplies were $4,000, and patient
receivables were $160,000. Equipment was purchased
as planned, but only $5,000 was borrowed in the line of
credit—ignore interest on the borrowin…

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