Reference no: EM131421339
The 2008 annual report for HCA, Inc., a nationwide chain of hospitals, contains the following statement in the footnotes to the financial statements:
We operate in a highly regulated and litigious industry.
Furthermore, the company discloses,
Reserves for professional liability risks were $1.387 billion and $1.513 billion at December 31, 2008 and 2007, respectively. The current portion of this reserve, $279 million and $280 million at December 31, 2008 and 2007, respectively, is included in "other accrued [liabilities]" in the consolidated balance sheet. Provisions for losses related to professional liability risks were $175 million, $163 million and $217 million for 2008, 2007, and 2006, respectively (and) are included in "other operating expenses" in our consolidated income statement. Provisions for losses related to professional liability risks are based upon actuarially determined estimates. Loss and loss expense reserves represent the estimated ultimate net cost of all reported and unreported losses incurred through the respective consolidated balance sheet dates.
REQUIRED:
a. The term reserve refers to accrued liabilities. What portion of the reserves reported in 2008 and 2007 is listed in the current liability section of the balance sheet?
b. What entries were made in 2006, 2007, and 2008 to record additional reserves?
c. Estimate the cash payments made during 2008 to cover professional liability risks.
d. Discuss how management could manage earnings in this industry.
|
How fast is the truck moving relative to the highway
: 1. You are driving eastbound on the interstate at 70 mi/h. You observe that you are approaching a truck in your lane at a relative speed of 20 mi/h. a. How fast is the truck moving relative to the highway?
|
|
Different types of research methodology
: Can someone assist me on different types of research methodology (such as quantitative, qualitative and mix methods) on Solar Power Energy? Which includes the proposal, research instruments/techniques used in a justification of decisions.
|
|
What did you find particularly difficult
: briefly describe how your writing may have changed had you directed your proposal toward a primary or secondary reader. What does this tell you about the importance of understanding your readers
|
|
What techniques and training tools are necessary to change
: What type of training and development, policies and procedures, compliance regulations, and communication programs are required to ensure that the organization meets the goals and objectives of seeking and maintaining a global, diverse workforce t..
|
|
How management could manage earnings in this industry
: The term reserve refers to accrued liabilities. What portion of the reserves reported in 2008 and 2007 is listed in the current liability section of the balance sheet?
|
|
Analyzing felix baumgartner dive for homework
: When analyzing Felix Baumgartner's dive for homework, you at one point addressed the question of how he was able to slow down in the course of his fall. There are actually several different ways his speed was reduced -- some under his control and ..
|
|
How to complete a comprehensive bank reconciliation
: Discuss with your collaborative group how to complete a comprehensive bank reconciliation with theft and internal control deficiencies. Write a 175-word individual response.
|
|
Degrees above the horizontal
: A volleyball is sent over a net, having been launched at a speed 2.4 m/s at an angle 30 degrees above the horizontal, from the grou d. What is the balls speed, in m/s, 1.26 seconds after being launched?
|
|
Describe the specific security concerns or risks
: Describe the specific security concerns or risks that your chosen operating system is exposed to and how you plan to mitigate the risk that each one presents.Focus on the following areas as security targets:Patching and installed software,Users,Fil..
|