Laserfiche WebLink
Indian River Memorial Hospital , lnc . and Subsidiaries <br /> Notes to Consolidated Financial Statements <br /> For the Years Ended September 30, 2002 and 2m1 <br /> The Hospital has also entered into payment arrangements with certain commercial insurance <br /> carriers, health maintenance organizations, and preferred provider organizations. The basis <br /> for payment to the Hospital under these arrangements includes prospectively. determined rates <br /> per discharge, discounts from established charges, and per diem rates. Some of these <br /> arrangements provide for review of paid claims for compliance with the terms of the contract <br /> and result in retroactive settlement with third parties. Retroactive adjustments for other third <br /> P claims are recorded in the period when final settlement is determined. <br /> Laws and regulations governing the Medicare and Medicaid Programs are complex and <br /> subject to interpretation. The Hospital believes that it ism compliance with all- apphcaUe <br /> laws and regulations ani is not aware of any pending or threatened investigations `involving <br /> _ allegations of potential wrongdoing: While no such regulatory inquiries have been made, - _ <br /> compliance with such- laws andregulations can be subject to future governmental review and <br /> interpretation as well as significant regulatory action including fines, penalties, and exclusion <br /> from the Medicare and Medicaid Programs. <br /> The components of net patient service revenue for the years ended September 30 are <br /> summarized as follows : <br /> - 2002 2001 - <br /> Gross patient service-revenue - $ 308, 803,642 $ 27629219356 - <br /> Contractual adjustments and other-deductions ( 1863,468,465) ( 154, 1.5731410) <br /> Net patient service revenue $ 1222335, 177 $ 122276331946 <br /> 3 . Concentrations of Credit Risk - <br /> The Hospital grants credit without collateral to its patients, most of whom are local residents <br /> and are insured under third-party payor agreements. The mix of receivables from patients and <br /> third-party payors at September 30, was as follows : <br /> 2002 2001 <br /> Medicare 32% 33 % <br /> Medicaid 9 4 <br /> Managed care , 18 21 <br /> Insurance 6 5 <br /> Self pay and other 35 37 <br /> 100% 100% <br /> 1 <br /> 44 - <br />