MHA 706 Financial Management Midterm Exam 2025

Healthcare finance - -the accounting and financial management principles and practices used within health services organizations to ensure the financial well-being of the enterprise healthcare sector - -consists of a diverse collection of industries that involve the healthcare of the population provider - -an organization that provides healthcare services business - -maintains financial viability by selling goods or services pure charity - -relies solely on contributions finance - -consists of both accounting and financial management functions primary role of finance - -to plan for, acquire, and use resources to maximize the efficiency and value of the enterprise accounting - -concerns the recording of economic events that reflect the operations, resources, and financing of an organization financial management - -provides the theory, concepts, and tools necessary to help managers make better financial decisions planning and budgeting - -involves evaluating the financial effectiveness of current operations and planning for the future financial reporting - -recording and reporting to outsiders the results of operations and current financial status capital budgeting - -the process of analyzing and choosing new fixed assets financing decisions - -all organizations must raise capital to buy the assets necessary to support operations working capital management - -a managerial accounting strategy focusing on maintaining efficient levels of both components of working capital, current assets and current liabilities, in respect to each other NURSING NURSING contract management - -the process of managing contract creation, execution and analysis to maximize operational and financial performance at an organization, all while reducing financial risk financial risk management - -the practice of economic value in a firm by using financial instruments to manage exposure to risk, particularly credit risk and market risk four C's - -costs, cash, capital, and control cost - -a resource use associated with providing or supporting a specific service chief financial officer - -typically reports directly to the CEO chief executive officer - -responsible for all finance activities within the organization comptroller - -responsible for accounting and reporting activities treasurer - -responsible for then acquisition and management of capital patient accounts manager - -reports to the comptroller cash manager - -reports to treasurer business practice manager - -in small health services organizations, the finance responsibilities are combined and assigned to this person hospitals - -provide diagnostic and therapeutic services to individuals who require more that several hours of care general acute care hospitals - -provide general medical and surgical services and selected acute specialty services tertiary care - -highly specialized and technical in nature, with services for patients with unusually severe, complex, or uncommon problems governmental hospitals - -federal and public entities federal hospitals - -operated by military services or the US Department of Veterans Affairs public hospitals - -funded wholly or in part by a city, county, tax district, or state private not-for-profit hospitals - -nongovernmental entities organized for the sole purpose of providing inpatient healthcare services investor-owned corporations - -a for-profit business whose capital is supplied by owners NURSING NURSING not-for-profit corporations - -a corporation that has a charitable purpose, is tax exempt, and has no owners third-party payer - -an entity other that the patient that pays for healthcare services ambulatory or outpatient care - -encompasses services provided to non institutionalized patients long-term care - -healthcare services that cover an extended period of time, often with a focus on mental health skilled nursing facilities - -provide the level of care closest to hospital care intermediate care facilities - -intended for individuals who do not require hospital or SNF care but whose mental or physical conditions require daily continuity of one or more medical services residential care facilities - -sheltered environments that do not provide professional healthcare services integrated delivery system - -a single organization that offers a broad range of healthcare services in a unified manner licensure - -the granting or regulation of licenses, as for professionals certificate of need - -An endorsement required by numerous states before the construction of a new health care facility will be approved professional liability - -protects professionals such as accountants, lawyers and physicians against negligence and other claims initiated by their clients prorietorship - -a simple form of business owned by a single individual partnership - -a non-incorporated business entity that is created by two or more individuals corporation - -a legal business entity that is separate and distinct from its owners and managers investment liquidity - -the ability to sell an investment quickly and at a fair price limited partnership - -a partnership form of organization with general partners that have control and unlimited liability and limited partners that have no control and limited liability NURSING NURSING limited liability partnership - -a partnership form of organization that limits the professional liability of its partners limited liability company - -a corporate form of organization that combines some features of a partnership with others of a corporation professional corporation - -a type of corporate business organization in which owners/managers still have professional liability S corporation - -a corporation with a limited number of stockholders that is taxed as a proprietorship or partnership primary market - -the market in which newly issued securities are sold for the first time secondary market - -the market in which previously issued securities are sold publicly held company - -a corporation whose shares are held by the general public privately held company - -shares are held by a small number of individuals, usually the managers stockholders - -owners of investor-owned corporations board of directors - -oversees the management of the company proxy - -a document giving one person the authority to act for another - typically the power to vote shares of common stock residual earnings - -any excess of revenues over expenses dividend - -the periodic payment paid to owners of common and preferred stock form 990 - -a form filed by not-for-profit organizations with the IRS that reports on governance and charitable activities schedule H - -an attachment to form 990 filed by not-for-profit hospitals that gives additional information on charitable activities shareholder wealth maximization - -stock price maximization