MHA 706 MIDTERM- LORD | COMPLETE QUESTIONS WITH 100% RATED CORRECT ANSWERS |
GRADED A+ | 2025/2026 LATEST UPDATE
Days in Patient Accounts Receivable Net patient accounts receivable/(net patient service
revenue/365)
Average Age of Plant accumulated depreciation / depreciation expense
Contribution Margin Sales - Variable Costs
break even volume fixed cost/(price-variable cost)
variable costs costs that vary directly with the level of production
fixed costs costs that remain constant as output changes
definition of healthcare finance depends on the context of: 1) policymaker or manager
2) type of healthcare organization
Health care finance the practice of finance, including both accounting & financial
management, within health services (provider) organizations
,Accounting The process of planning, recording, analyzing, and interpreting financial
information.
Are accounting & financial mgmt independent? No, both capture, measure, & use data, but
with different purpose
characteristics of business: 1) obtains financing from marketplace
2) uses funds to buy assets
3) operates the assets to provide goods or services
4) sells goods or services to create revenue
primary role of finance to plan for, acquire, & utilize resources to maximize the efficiency (&
hence value) of the enterprise
finance activities 1) planning & budgeting
2) financial reporting
3) capital investment decisions
4) financing decisions
5) working capital management
6) contract management
7) financial risk management
, Four C's (summarize finance activities) 1) Cost minimization
2) Cash sufficiency
3) Capital access
4) Control of financial resources
finance dept usually organized as follows: CFO (VP-Finance)
Comptroller
Treasurer
Comptroller handles budgeting & reporting & payables & receivables mgmt
Treasurer handles acquisition & employment of capital, debt mgmt, & financial risk mgmt
__________________________ decreases possibility of stealing segregation of duties
health service settings hospital (inpatient)
ambulatory (outpatient)
long-term care
integrated delivery systems
Mgmt challenges - ACHE financial concerns
GRADED A+ | 2025/2026 LATEST UPDATE
Days in Patient Accounts Receivable Net patient accounts receivable/(net patient service
revenue/365)
Average Age of Plant accumulated depreciation / depreciation expense
Contribution Margin Sales - Variable Costs
break even volume fixed cost/(price-variable cost)
variable costs costs that vary directly with the level of production
fixed costs costs that remain constant as output changes
definition of healthcare finance depends on the context of: 1) policymaker or manager
2) type of healthcare organization
Health care finance the practice of finance, including both accounting & financial
management, within health services (provider) organizations
,Accounting The process of planning, recording, analyzing, and interpreting financial
information.
Are accounting & financial mgmt independent? No, both capture, measure, & use data, but
with different purpose
characteristics of business: 1) obtains financing from marketplace
2) uses funds to buy assets
3) operates the assets to provide goods or services
4) sells goods or services to create revenue
primary role of finance to plan for, acquire, & utilize resources to maximize the efficiency (&
hence value) of the enterprise
finance activities 1) planning & budgeting
2) financial reporting
3) capital investment decisions
4) financing decisions
5) working capital management
6) contract management
7) financial risk management
, Four C's (summarize finance activities) 1) Cost minimization
2) Cash sufficiency
3) Capital access
4) Control of financial resources
finance dept usually organized as follows: CFO (VP-Finance)
Comptroller
Treasurer
Comptroller handles budgeting & reporting & payables & receivables mgmt
Treasurer handles acquisition & employment of capital, debt mgmt, & financial risk mgmt
__________________________ decreases possibility of stealing segregation of duties
health service settings hospital (inpatient)
ambulatory (outpatient)
long-term care
integrated delivery systems
Mgmt challenges - ACHE financial concerns
