During its current fiscal year, Evanston General Hospital, a not-for-profit health care organization, had the...
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Accounting
During its current fiscal year, Evanston General Hospital, a not-for-profit health care organization, had the following revenue-related transactions (amounts summarized for the year). Services provided to inpatients and outpatients amounted to $9,828,000, of which $469,000 was for charity care; $947,000 was paid by uninsured patients; and $8,412,000 was billed to Medicare, Medicaid, and insurance companies. Donated pharmaceuticals and medical supplies valued at $284,000 were received and utilized as general expenses. Medicare, Medicaid, and third-party payors (insurance companies) approved and paid $5,384,000 of the $8,412,000 billed by the hospital during the year (see transaction 1). An unconditional contribution of $5,190,000 was received in cash from a donor to construct a new facility for care of Alzheimer's patients. The full amount is expendable for that purpose. No activity occurred on this project during the current year. A total of $1,212,000 was received from the following activities/sources: cafeteria and gift shop sales, $900,000; medical seminars, $144,000; unrestricted transfers from the Evanston General Hospital Foundation, $94,000; and fees for medical transcripts, $74,000. Uncollectible accounts totaling $5,150 were written off. The allowance for uncollectible receivables was increased by $10,670.

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