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Questions for HCF 1

Terms in this set (20)

What is meant by the term healthcare finance?
is the practice of finance, including both accounting and financial management, within health services organizations
What is the difference between accounting and financial management?
accounting provides a rational means by which to measure a business's financial performance and assess operations
financial management provides the theory, concepts, and tools necessary to help managers make better financial decisions.
difference between a business and a charity
A business, sustains itself financially by selling goods or services.
charities obtains funds by soliciting contributions and then uses those funds to supply charitable (free) services.
What is the role of finance in today's health services organizations?
to plan for, acquire, and use resources to maximize the efficiency and value of the organization
What are the four Cs
Cash, Capital, cost, control
Briefly describe the typical structure of the finance department within a health services organization.
The CFO directs two senior managers who help manage finance activities. First is the controller who is responsible for accounting and reporting activities such as routine budgeting, preparation of financial statements, payables management, and patient accounts management. Second is the treasurer, who is responsible for the acquisition and management of capital
How does the structure of the finance department differ between small and large health services organizations?
In very small businesses, many of the finance responsibilities are combined and assigned to just a few individuals. In the smallest health services organizations, the entire finance function is managed by one person, often called the business (practice) manager
Name a few settings in which health services are provided.
hospitals, ambulatory care facilities, long-term care facilities, and even at home.
Briefly describe horizontal and vertical integration.
horizontally integrated systems that controlled a single type of healthcare facility, such as hospitals or nursing homes.
vertically integrated through either direct ownership or contractual arrangements.
What are some important issues facing healthcare managers today?
revenue growth, population health, and accountable care organization strategy and cost containment.
What are the three primary forms of business organization
partnership, corporation, and sole proprietorship
What is the purpose of hybrid forms of business organization?
the hybrid forms are designed to limit owners' liability without having to fully incorporate.
What are the major differences between investor-owned and not-for-profit corporations
investor-owned and not-for-profit
organizations have profound implications for many elements of healthcare financial management, including organizational goals, financing decisions
What are the purpose and content of IRS Form 990?
Its purpose is to provide both the IRS and the public with financial information about not-for-profit organizations, and it is often the only source of such information
What types of requirements have been placed on not-for-profit hospitals to ensure that they meet their charitable mission?
conducting a community health needs assessment every three years and develop-ing plans for implementation; (2) establish-ing a written financial assistance policy; (3) charging patients who qualify for financial assistance amounts similar to what insured patients are charged; and (4) not engaging in aggressive collection efforts before making an effort to determine whether a patient is eligible for financial assistance.
What is the difference in goals between investor-owned and not-for-profit businesses
The primary goal of investor-owned corporations is shareholder wealth (stock price) maximization. not for profit is to use those profits to provide a public service, advance a cause, or assist others.
Briefly describe the differences in key stakeholders between investor-owned and not-for-profit businesses.
a not-for-profit hospital's stakeholders include the board of trustees, managers, employees, physician staff, creditors, suppliers, patients, and even potential patients. An investor-owned hospital has the same set of stakeholders, plus stockholders
What is the medical home model, and what is its purpose?
A team-based model of care led by a personal physician who provides continuous and coordinated care throughout a patient's lifetime with a goal of maximizing health outcomes
What is an accountable care organization (ACO), and what is it designed to accomplish?
A network of healthcare providers joined together for the purpose of increasing patient service quality and reducing costs
What is the primary purpose of healthcare reform
to increase the number of insured and to increase the quality of care while trying to stabilize or reduce costs.
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