Week Five Learning Team Case StudyTable of ContentsRequirement ARequirement BWhat if the Government Owned the Hospital?ReferencesACC/497WEEK FIVE LEARNING TEAM CASE STUDYTable of Contents•Requirement A•Requirement B•What if the government owned the hospital?•ReferencesL. Williams. (2011). Tennis mixer to benefit St. Jude Children's Research Hospital . Retrieved from http://www.ultimatespringtx.com/stories/240792-events-tennis-mixer-to-benefit-st-jude-children-s-research-hospitalRequirement A•What is meant by the reference in Table 5.3-1 to an FAS 116 adjustment? •How are contributions recorded? Is there a distinction between pledges receivable and accounts receivable?•Are there circumstances when financial statements can quantify volunteers' services?•Can financial statement users of not-for-profit hospitals' financial statements expect to be fully informed regarding affiliated parties, such as the linkages between St. Jude Children's Research Hospital, ALSAC, and the foundation cited? Explain.Fiscal Year Ended 1999 St. Jude Children's Research Hospital Form 990*Schedule of deferred debits & credits by contract (FAS 116 adjustment noted to result in this deferred revenue)$157,628Requirement B•How does this revenue mix compare with the revenue blend of the not-for-profit entity, St. Jude Children’s Research Hospital (ALSAC)?•What does that imply as to the strategies of investor-owned hospitals in managing risk and ensuring adequate capital relative to not-for-profit entities? Patient Revenue MixesUniversal Health Services, Inc. St. Jude’s Children’s Research HospitalMedicare 32.3%Contributions 37.8%Medicaid 11.5%Patient Care Services 27.9%Managed Care (HMO’s & PPO’s)34.5%Grants 27.6%Other sources 21.7%Other 6.7%What if the Government Owned the Hospital? •How would the answers to requirements A and b differ if the government owned and operated the hospital?Process revenue from bonds, taxes, and program servicesNo adjustments neededVolunteer’s time can be used for both internal and external purposesA Comprehensive Annual Financial Report would be used instead of traditional financial statements.M. Molnar. 2012. US Issues World Wide Travel Alert in Wake of Bin Laden’s Death. Retrieved from http://www.nycaviation.com/2011/05/us-issues-world-wide-travel-alert/#.UATXb_VQQrkReferences•L. Williams. (2011). Tennis mixer to benefit St. Jude Children's Research Hospital. Retrieved from http://www.ultimatespringtx.com/stories/240792-events-tennis-mixer-to-benefit-st-jude-children-s-research-hospital•M. Molnar. 2012. US Issues World Wide Travel Alert in Wake of Bin Laden’s Death. Retrieved from http://www.nycaviation.com/2011/05/us-issues-world-wide-travel-alert/#.UATXb_VQQrk •SEC. (2002). Association for Investment Management and Research Financial Accounting Policy Committee. Retrieved from