Q A financial statement is prepared monthly for our center. And inevitably, at least one physician owner asks, "Is it right?" How do I answer this question?

A Trying to read a financial statement is difficult, even for CPAs. As the administrator, there are a few things you can check for accuracy. First, find out whether the financial statement's accounting is accrual-based (most are, and yours should be if it isn't) or cash-based.

Here are five things you can do to independently verify the financial statement each month:

• Accounts-receivable balance. Due at the end of the month, you can get this number from your billing system.
• Medical supply inventory. You can double-check this against the financial statement from either your billing software or a monthly or quarterly physical count.
• Cash balance. Your center's checkbooks should agree with your month-end financial statement.
• Gross charges. They can be compared to those reported in your billing system.
• Monthly expenses. Your general ledger will have this figure.

Doing checks on these key data means you can assure your owners - and yourself - of the financial statement's accuracy.

Q We recently had three eye infections. What do you recommend in terms of tracking and risk management?

A Due to the high risk for extremely negative outcomes associated with eye infections, responding immediately and thoroughly is critical. Compose a multidisciplinary team that includes physicians, support staff and the clinical staff. Analyze every step in detail to identify areas where there is potential for error. Some items to track include

• DOS versus date of reported infection,
• length of procedure,
• personnel,
• the operating room,
• temperature and humidity,
• patient-risk factors,
• pre-operative antibiotic drops,
• intra- and post-operative medications,
• implant information (if applicable), and
• sterilization methods and information, such as sterilizer and load number.

Once you determine any trends, develop an action plan. Review all cases to evaluate the action plan's effectiveness. If necessary, refine the plan until the team is comfortable that the issue has been resolved.

Q We have a contract with a contractor to provide preventative maintenance to our equipment. What information do I need on hand during an accreditation survey?

A Be prepared to demonstrate concerns for the safety of patients and associates in the use of all medical equipment. Make available policies showing you require all equipment to be approved by a biomedical department before use on a patient. Loaner and demonstration equipment, newly acquired equipment and contracted equipment used periodically (such as a laser or lithotripsy) should be included in these policies.

In addition, use a chart like this one to show planned preventative maintenance based on manufacturer recommendations or community standards, monitoring of malfunctions/repairs for trends and an action plan for correcting issues identified.