Financial Resource Management in Healthcare - C428 WGU

Financial Resource Management in Healthcare - C428 WGU Costs Cash Capital Control Ans- Finance within a healthcare organization can be condensed into the "four Cs": Treasurer Ans- The finance department manager who handles capital acquisition, investment management, and risk management activities Comptroller Ans- The finance department manager who handles accounting, budgeting, and reporting activities. CFO (Chief Financial Officer) Ans- The head of the finance department holds the title of chief financial officer. (The title of vice president-finance is also used.) This individual typically reports directly to the organization's chief executive officer (CEO) and is responsible for all finance activities within the organization. costs Ans- The measurement and minimization of _____ are vital activities to the financial success of all healthcare organizations. Rampant ____, compared to revenues, usually spell doom for any business. cash Ans- A business might be profitable but still face a crisis because of a shortage of _____. ______ is the lubricant that makes the wheels of a business run smoothly; without it, the business grinds to a halt. Capital Ans- _____ represents the funds (money) used to acquire land, buildings, and equipment. Without _____, healthcare businesses would not have the physical resources needed to provide patient services. Control Ans- A business must ______ its financial and physical resources to ensure that they are being wisely employed and protected for future use. In addition to meeting current mission requirements, healthcare organizations must plan to meet society's future healthcare needs. Accounting Ans- The measurement and recording of events that reflect the operations, assets, and financing of an organization. healthcare finance Ans- Within health services organizations, ____ _____ consists of both the accounting and financial management functions. financial management Ans- Whereas accounting provides a rational means by which to measure a business's financial performance and to assess operations, ___ ____ (often called corporate finance) provides the theory, concepts, and tools necessary to help managers make better financial decisions. horizontal Ans- Before the 1980s, most healthcare organizations were freestanding and not formally linked with other organizations. Those that were linked tended to be part of ______ systems, which control a single type of healthcare facility, such as a group of hospitals or nursing homes. Horizontal system Ans- A single business entity that owns a group of similar providers, such as hospitals. Vertical System Ans- A single business entity that owns a group of related, but not identical, providers, such as hospitals, medical practices, and nursing homes. Vertical Ans- Recently many healthcare organizations have created systems, which control different types of providers such as medical practices, hospitals, and nursing homes. The Joint Commission Ans- The accreditation body for hospitals and other health services organizations. Voluntary. Meant to promote high standards of care. General acute care hospital Ans- A hospital that treats all conditions that require a relatively short hospitalization (e.g., less than 30 days). Specialty Hospital Ans- A hospital that treats patients with a common characteristic or condition, such as a children's or cancer hospital. Government Hospital Ans- A hospital that is owned by a government entity. Federal hospitals are owned by the federal government, while public hospitals are owned (or funded) by state or local governments. Private not-for-profit hospital Ans- A hospital that is not governmental but is operated for the exclusive benefit of the community. Investor-owned hospital Ans- A hospital that is owned by investors who benefit financially from its operation. Also called a for-profit hospital. Ambulatory (outpatient) care Ans- Care that is provided to patients who are not institutionalized. Typical settings include physicians' offices, outpatient surgery centers, and walk-in clinics.