Health Care Financial Environment

Congratulations! You were selected as the new assistant to theChief Financial Officer of Pearland Medical Center, a 1,000-bed academicmedical center in the suburbs of a city with a population of over 4million.

Pearland Medical Center purchased a Zoll R Series defibrillator,automatic cardiopulmonary resuscitation (CPR) support machine for itsemergency department, for $20,000 and placed it in service in 2015.Pearland Medical Center paid $400 to ship the machine. No installationfees were required. Assume that the chest compression system falls intothe Modified Accelerated Cost Recovery System (MACRS) 5-year class.

1. Calculate the Lucas chest compression system depreciation expensefor tax purposes according to MACRS and its tax book value for eachyear.
2. Discuss the relationship between depreciation and taxes for a taxable organization.

Length: 3–4 pages, excluding title page and references.

SLP Assignment Expectations

The following guidance appears only in Module 1, but it applies to the assignments throughout the course:

File format: Your work should be prepared using Microsoft Word,PowerPoint, or Excel depending upon the assignment instructions. Forassignments requiring video or voice recordings, use media formats thatare supported by MyTLC Courses as noted in our Trident Support page

In-text citations and references: Be sure that all information andideas in your papers are supported by in-text citations andcorresponding references at the end of the paper.

Scholarly sources: At least two scholarly sources should be includedin your papers. Online sources must be limited to credible professionaland scholarly publications such as peer-reviewed journal articles,e-books, or specific webpages on websites from a university, government,or nonprofit organization (these have extensions .edu, .gov, or .org).Presenting consumer sources such as e-magazines, newspapers, Wikipedia,WebMD, or other commercial websites (these have extensions .com) asreferences is not appropriate.

Scholarly writing: Use an academic paper format, not an essay basedon your opinions or experience. Avoid using the first person in writing.Synthesize what you learned from the sources you read; write papers inyour own words; and cite sources within the text, as well as include aproperly formatted reference list.

Use of direct quotes: Use of direct quotes should be avoided. Onlyuse direct quotes when preserving the exact words of an author isnecessary. In the rare instance that directly quoted material is used,it must be properly cited (with quotation marks and page numbers in thein-text citation); quotes should not exceed 5-10% of the total papercontent.

Required Reading

Accounting Capital. (2014). What are accounting principles? Retrieved from http://www.accountingcapital.com/basic-accounting/…

Laying the groundwork for value-based payment. Healthcare Financial Management, 67(2), 1-4.

Speizman, R. A. (2009). Tax-exempt status for hospitals: Where have we been – and where are we going? Healthcare Financial Management, 63(2), 62-66.

Tolbert, S. H., Moore, G. D., & Wood, C. P. (2010).Not-for-profit organizations and for-profit businesses: Perceptions andreality. Journal of Business & Economics Research, 8(5), 141-153.

Optional Reading

Internal Revenue Service. (2016). New requirements for 501(c)(3) hospitals under the Affordable Care Act.Retrieved from https://www.irs.gov/charities-non-profits/charitab…