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:email@example.com or by phone at 215.571.4478.