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New Chart of Accounts Elements for American Academic Health System Transactions

February 3, 2018

As you are already aware, on midnight January 11, 2018, Hahnemann University Hospital (HUH) and St. Christopher’s Hospital for Children (SCHC) were sold by Tenet Healthcare Corporation to American Academic Health System (AAHS).  As such, it is necessary to delineate any transactions related to AAHS from Tenet for our consolidated financial statements.  Any activity related to HUH or SCHC on Chart D should be recorded using the new accounts described below for activities occurring on or after January 1, 2018.  Revenue and expenditure activity that was not accrued as of December 31, 2017, in the general ledger will have to be recorded using the new AAHS accounts, except for the December 2017 salary and fringe entry related to SCHC.  Also, in trying to continuously improve our chart of accounts, these accounts have been assigned new roll-ups for financial reporting.

Balance Sheet Accounts for AAHS

Account 0152 - Due to/from AAHS replaces Account 0143 – Due to/from Tenet

Account 0156 - Due to/from AAHS-SCHC Salaries replaces Account 0363 – Due to Tenet – SCHC Salaries

 

New Revenue Account for AAHS

1609 – AAHS Support Services replaces Account 1601 – Tenet Support Services

 

New Expense Accounts and Roll-ups for AAHS

46 – Related Party Purchased Services    (Roll-up)

                460-AAHS Purchased Services    (Roll-up)

                                4610-AAHS Salary/Fringe replaces Account 3418 Tenet Salary/Fringe

                                4620-AAHS Patient Care replaces Account 4205-Tenet Patient Care

                                4630-AAHS SCHC Education Services replaces Account 4260-Tenet SCHS Education Srvcs

                                4640-AAHS Admin Services replaces Account 4252 – Tenet Admin Services

 

47 – Related Party Rent (Roll-up)

                470 – AAHS Rent (Roll-up)

                                4710 – AAHS Rent Expense replaces Account 4251-Tenet Rent Expense

 

In addition to the above account codes, we have created four new funds for the individual leases related to our new agreement with AAHS, which are as follows:

New AAHS Lease Funds

120627-3280-170              1501 Race Street – Bellet

120628-3280-170              216 North Broad Street – Feinstein/Bobst

120629-3280-170              225 North 15th – New College

120630-3280-170              222 North Broad – North and South

 

Expenses associated with these leases should be recorded using these newly created funds. 

Finally, we have added a new org 7220 – AAHS Admin Services to replace 4252-Admin Services – Tenet.

If you have any questions about the proper usage of these new accounts or the old accounts, please contact me at mailto:pjr27@drexel.edu or by phone at 215.571.4478.

Thank you.