Healthcare Finance exam 1
Basic characteristics required to make health insurance work effectively - correct answer ✔✔-Pooling of
losses
-payment only for random losses
-risk transfer
-indemnification
Liabilities - correct answer ✔✔a claim against the assets of an organization
Equity - correct answer ✔✔a claim against an asset that is meant to be paid after liabilities
Asset - correct answer ✔✔an item that posses or creates economic benefit for the organization
Structure of the finance department - correct answer ✔✔(in this order) CEO, CFO, but these 2 are not
over each other (Comptroller, treasurer)
Trends/challenges occurring in the health services industry - correct answer ✔✔increase amount of bad
debt
decreasing reimbursement
Net income versus cash flow - correct answer ✔✔depreciation- no cash is being transferred
net income with factoring in depreciate can be an estimate on cash flow
Revenues, expenses, and net income as they relate to the equity of an organization - correct answer
✔✔Income statement, when net income increases, the equity of an organization goes up and vis versa
Basic characteristics required to make health insurance work effectively - correct answer ✔✔-Pooling of
losses
-payment only for random losses
-risk transfer
-indemnification
Liabilities - correct answer ✔✔a claim against the assets of an organization
Equity - correct answer ✔✔a claim against an asset that is meant to be paid after liabilities
Asset - correct answer ✔✔an item that posses or creates economic benefit for the organization
Structure of the finance department - correct answer ✔✔(in this order) CEO, CFO, but these 2 are not
over each other (Comptroller, treasurer)
Trends/challenges occurring in the health services industry - correct answer ✔✔increase amount of bad
debt
decreasing reimbursement
Net income versus cash flow - correct answer ✔✔depreciation- no cash is being transferred
net income with factoring in depreciate can be an estimate on cash flow
Revenues, expenses, and net income as they relate to the equity of an organization - correct answer
✔✔Income statement, when net income increases, the equity of an organization goes up and vis versa
