Write a response to each discussion question. 2.1 Ashley Top of Form The  National Library of Medicine , defines managed care as programs or organizations “intended to reduce unnecessary healthcare costs through a variety of mechanisms, including: economic incentives for physicians and patients to select less costly forms of care; programs for reviewing the medical necessity of specific services; increased beneficiary cost sharing; controls on inpatient admissions and lengths of stay; the establishment of cost-sharing incentives for outpatient surgery; selective contracting with health care providers; and the intensive management of high-cost health care cases" (Nguyen, 2009). In other words, trying to reduce the cost of health care and improving the quality of care at the same time. One of the proposed ideas to assist in resolving the national deficit has been through the system that is referred to as Managed Care (MC) via Accountable Care Organizations (ACO), which was initiated in the 1990s (Arroyo, Daniel, Graves, Neal & Coustasse, 2016). The simple idea of an ACO is to formulate a unit consisting of a local health care organization and or a related set of clinicians that can take responsibility for both the cost and quality of care rendered to a defined population (Arroyo, Daniel, Graves, Neal & Coustasse, 2016). It is not secret that quality of care and cost of care in the United States has been terrible. Utilizing ACOs could benefit providers, insurance companies and also United States deficit. 2.1 Heard Top of Form One way managed care organizations try to introduce market mechanisms into healthcare is the preferred provider organization (PPO), which offers more flexibility in choosing practitioners than HMOs but which still offers incentives for seeing selected practitioners. PPOs are networks of practitioners that are most often organized by insurers, managed care organizations, or groups of practitioners. The networks contract with groups of practitioners who agree to provide services for a negotiated fee schedule (HIAA, 1996). Individuals who want to see a practitioner who is outside of the network can do so, but there will be a financial penalty. 2.1  Kelly Top of Form Managed care organizations can introduce market mechanisms into health care organizations by the benefits they offer to their employees.  Many companies offer health savings accounts along with high deductible health insurance plans.  If the employee participates in a wellness scan, they are subject to an employer paid funds into their health savings accounts.  Some organizations also offer more money depending on the score the employee gains on their wellness exams.  2.2 Taylor Top of Form The basis for all accounting theory is: Assets = Liabilities + Owners’ Equity. How the equation works is the value of the assets will always equal the value of the claims (whether liabilities to others or the owners) on those assets. A balance sheet has 2 sides: On the L.

1. Write a response to each discussion question.
2.1 Ashley
Top of Form
The
National Library of Medicine
, defines managed care as programs or organizations “intended
to reduce unnecessary healthcare costs through a variety of
mechanisms, including: economic incentives for physicians and
patients to select less costly forms of care; programs for
reviewing the medical necessity of specific services; increased
beneficiary cost sharing; controls on inpatient admissions and
lengths of stay; the establishment of cost-sharing incentives for
outpatient surgery; selective contracting with health care
providers; and the intensive management of high-cost health
care cases" (Nguyen, 2009). In other words, trying to reduce the
cost of health care and improving the quality of care at the same
time.
One of the proposed ideas to assist in resolving the national
deficit has been through the system that is referred to as
Managed Care (MC) via Accountable Care Organizations
(ACO), which was initiated in the 1990s (Arroyo, Daniel,
Graves, Neal & Coustasse, 2016). The simple idea of an ACO is
to formulate a unit consisting of a local health care organization
and or a related set of clinicians that can take responsibility for
both the cost and quality of care rendered to a defined
population (Arroyo, Daniel, Graves, Neal & Coustasse, 2016). It
is not secret that quality of care and cost of care in the United
States has been terrible. Utilizing ACOs could benefit
providers, insurance companies and also United States deficit.
2.1 Heard
Top of Form

2. One way managed care organizations try to introduce market
mechanisms into healthcare is the preferred provider
organization (PPO), which offers more flexibility in choosing
practitioners than HMOs but which still offers incentives for
seeing selected practitioners. PPOs are networks of practitioners
that are most often organized by insurers, managed care
organizations, or groups of practitioners. The networks contract
with groups of practitioners who agree to provide services for a
negotiated fee schedule (HIAA, 1996). Individuals who want to
see a practitioner who is outside of the network can do so, but
there will be a financial penalty.
2.1 Kelly
Top of Form
Managed care organizations can introduce market mechanisms
into health care organizations by the benefits they offer to their
employees. Many companies offer health savings accounts
along with high deductible health insurance plans. If the
employee participates in a wellness scan, they are subject to an
employer paid funds into their health savings accounts. Some
organizations also offer more money depending on the score the
employee gains on their wellness exams.
2.2 Taylor
Top of Form
The basis for all accounting theory is: Assets = Liabilities +
Owners’ Equity. How the equation works is the value of the
assets will always equal the value of the claims (whether
liabilities to others or the owners) on those assets. A balance
sheet has 2 sides: On the LEFT side are the Debit accounts
(Assets); cash, accounts receivable, and equipment. On the
RIGHT side are the Credit accounts (Liabilities/Equity);
accounts payable, notes payable, long-term debt, and equity as
stated by (accountingcoach.com).
From my understanding an example of this equation would look

3. something like this hopefully. First entry; using $10,000 of my
cash to start a business. That would be recorded as an entry to
the Asset side of the books as cash and a similar entry would be
made to the Equity (right) side of the books (Equity).
Second entry if you used $1,000 of your cash to purchase
supplies for your business, your “Cash” balance would be
reduced by $1,000, but you would record a different asset
(Equipment) of $1,000 (investopedia.com).
2.2_Buda
Top of Form
The basic accounting equation is assets = liabilities + owner's
equity (Vanzante, 2013). This equation shows the relationships
between assets, liabilities, and owner’s equity, also known as
net worth. Assets are resources that have future benefit for the
organization including items such as supply inventory, cash on
hand, and accounts receivable (Baker & Baker, 2014).
Liabilities are obligations or items that the organization owes to
outside entities such as accounts payable or taxes (Baker &
Baker, 2014). Owner’s equity, or net worth, are the claims held
by the owners of the business.
The parts of the equation need to be in balance; if liabilities
exceed owner’s equity, there are no assets (Baker & Baker,
2014). On the reverse side, if there are few liabilities and a
large owner’s equity, there are too many assets, and some of
that asset surplus should be expended to grow the business.
Bottom of Form
2.2 DB Mazanec
Top of Form
ASSET = LIABILITY + EQUITY. This is the basic accounting
equation. MissCPA (2012) describes the equation as “business
resources (assets) that are attributable to the amount owed to
creditors (liabilities) and capital invested by owners
(equity).” The equation must always equal and balance.
Assets refer to resources available that are used to operate the

4. business (misscpa.com, 2012). Examples of assets on the
hospital balance sheet include, cash, inventory, accounts
receivable, short and long-term investments, third party payor
settlements, and property, plant, and equipment.
Liabilities refer to the amount of debt an organization owes
outside the operation, otherwise considered creditors’ claims
against the assets of the organization (misscpa.com,
2012). Types of liabilities on the hospital balance sheet are
split into current and long-term liabilities and include bonds
and notes payable, capital leases both short and long-term,
accounts payable, accrued salaries and other payroll related
liabilities, and interest payable.
Equity is the term used to describe the owner’s investment in
the operation, whether it be capital or resources (misscpa.com,
2012). Equity is represented by many terms depending on the
type of organization or company: capital, drawing, common
stock, additional paid in capital, retained earnings, net income,
or net loss. The term used in our facility, a not-for-profit
hospital, is fund balance, restricted and unrestricted. Equity is
determined by the performance shown on the Income
Statement. Net income (or increase in net position) will
increase the equity, whereas a Net loss (or decrease in net
position) will lower the equity on the balance sheet.
Because this is the basic accounting equation, if the
fundamentals of the formula are not understood, the rest of the
financial process will not be successful.