HCAD final
Many facilites employ or contract with ________________________ to perform accounting/financial
analysis - Answer-large corporations
What has led to increased healthcare costs? - Answer--"Defensive medicine"
-uninsured
-prescriptions
-living longer
-more care
-lifestyle choices
-technology advances
-chronic disease
What has led to decreased healthcare costs? - Answer--preventative care
-technology (limiting error)
-education
-improved management techniques
-EMR
-generic drugs
,-workplace wellness
-increase cost-conciousness
-evidence-based medicine
-value-based purchasing
Proprietary - Answer--profit oriented
-pay all taxes
-corporation, partnership, individuals
Not-for-Profit - Answer--not profit oriented
-do not pay income, property, or sales tax
-voluntary or government
Whats an example of how an organizational structure might influence a LTC administrators role in
financial management - Answer--how involved they are in finances
-how they look at/interpret finances
Managerial Accounting - Answer--compares results against goals
-determines reason for variations
-helps identify corrective action
-forecasting and planning
-analyze information
Financial Accounting - Answer--records transactions
-classifies transactions
-reconciles records
,-summarizes transactions
-presents financial data
The Accounting Period - Answer-A period of time covered by an accounting report (typically one year)
What is the basic accounting equation? - Answer-Assets = Liabilities + Equity
Accrual accounting method - Answer-Accounting method generally used in healthcare
Why do many organizations hire financial specialists? - Answer-The rules and regulations that follow
CMS require special forms/paperwork and very specific protocol. To make sure everything is done
correctly, a person who is well-informed in that area is an ideal addition to any facility.
Bookkeeper - Answer-handles many of the important entries that are eventually passed on to the
facilities accountant
What is another term for the income statement? - Answer-Profit and loss statement
Balance sheet - Answer-examines financial status at a point in time
Income Statement - Answer-examines financial activity over a period of time
Examples of commonly used integrated financial electronic health records information systems? -
Answer-Acute care= EPIC
Long-Term care= PCC and Matrix
SNFs commonly set up their Chart of Accounts to mimic what? - Answer-Medical Cost Reports
, What is the purpose of conducting a financial audit? Who usually conducts an organizations audit? -
Answer-Validating accuracy of balance sheet information conducted outside CPA firm
Describe the major difference between cash vs. accrual accounting.
Which type is most commonly used in healthcare? - Answer-Difference is that you record transactions
at the time it occurs vs when the cash changes hands.
Accrual
Asset - Answer-Anything of value that is owned
EX:
-cash
-accounts receivable
-inventory
-lands
-building
Liability - Answer-An amount owed by a business
EX:
-accounts payable
-payroll taxes due
-notes payable
-mortgage payable
Many facilites employ or contract with ________________________ to perform accounting/financial
analysis - Answer-large corporations
What has led to increased healthcare costs? - Answer--"Defensive medicine"
-uninsured
-prescriptions
-living longer
-more care
-lifestyle choices
-technology advances
-chronic disease
What has led to decreased healthcare costs? - Answer--preventative care
-technology (limiting error)
-education
-improved management techniques
-EMR
-generic drugs
,-workplace wellness
-increase cost-conciousness
-evidence-based medicine
-value-based purchasing
Proprietary - Answer--profit oriented
-pay all taxes
-corporation, partnership, individuals
Not-for-Profit - Answer--not profit oriented
-do not pay income, property, or sales tax
-voluntary or government
Whats an example of how an organizational structure might influence a LTC administrators role in
financial management - Answer--how involved they are in finances
-how they look at/interpret finances
Managerial Accounting - Answer--compares results against goals
-determines reason for variations
-helps identify corrective action
-forecasting and planning
-analyze information
Financial Accounting - Answer--records transactions
-classifies transactions
-reconciles records
,-summarizes transactions
-presents financial data
The Accounting Period - Answer-A period of time covered by an accounting report (typically one year)
What is the basic accounting equation? - Answer-Assets = Liabilities + Equity
Accrual accounting method - Answer-Accounting method generally used in healthcare
Why do many organizations hire financial specialists? - Answer-The rules and regulations that follow
CMS require special forms/paperwork and very specific protocol. To make sure everything is done
correctly, a person who is well-informed in that area is an ideal addition to any facility.
Bookkeeper - Answer-handles many of the important entries that are eventually passed on to the
facilities accountant
What is another term for the income statement? - Answer-Profit and loss statement
Balance sheet - Answer-examines financial status at a point in time
Income Statement - Answer-examines financial activity over a period of time
Examples of commonly used integrated financial electronic health records information systems? -
Answer-Acute care= EPIC
Long-Term care= PCC and Matrix
SNFs commonly set up their Chart of Accounts to mimic what? - Answer-Medical Cost Reports
, What is the purpose of conducting a financial audit? Who usually conducts an organizations audit? -
Answer-Validating accuracy of balance sheet information conducted outside CPA firm
Describe the major difference between cash vs. accrual accounting.
Which type is most commonly used in healthcare? - Answer-Difference is that you record transactions
at the time it occurs vs when the cash changes hands.
Accrual
Asset - Answer-Anything of value that is owned
EX:
-cash
-accounts receivable
-inventory
-lands
-building
Liability - Answer-An amount owed by a business
EX:
-accounts payable
-payroll taxes due
-notes payable
-mortgage payable
