HC FINANCIAL MANAGEMENT CH 1-4 STUDY QUESTIONS AND CORRECT ANSWERS

HC FINANCIAL MANAGEMENT CH 1-4
STUDY QUESTIONS AND CORRECT
ANSWERS
WhatA2areA2someA2ofA2theA2subsectorsA2thatA2makeA2upA2theA2healthcareA2sector?A2-
A2Ans---A2HealthA2servicesA2(providers)
-A2HealthA2insuranceA2
-A2MedicalA2equipmentA2andA2supplies
-A2Consulting
-A2Education
-A2RegulativeA2govt.A2agencies
-A2PrivateA2agencies

HealthcareA2financeA2-A2Ans--
theA2accountingA2andA2financialA2managementA2principlesA2andA2practicesA2usedA2withinA
2healthA2servicesA2organizationsA2toA2ensureA2theA2financialA2well-
beingA2ofA2theA2enterprise.

2A2broadA2areasA2ofA2healthcareA2financeA2-A2Ans--
AccountingA2andA2FinancialA2management

BusinessA2-A2Ans--maintainsA2itsA2financialA2viabilityA2byA2sellingA2goodsA2andA2services

pureA2charityA2-A2Ans--maintainsA2financialA2viabilityA2soleyA2fromA2contributions

RoleA2ofA2financeA2inA2theA2healthA2servicesA2sectorA2-A2Ans--
ToA2planA2for,A2acquire,A2andA2useA2resourcesA2toA2maximizeA2efficiencyA2andA2valueA2ofA
2anA2organization


StructureA2ofA2aA2financeA2departmentA2-A2Ans---A2ChiefA2FinancialA2OfficerA2CFO
-A2CFOA2reportsA2toA2CEOA2
-A2Comptroller:A2responsibleA2forA2accountingA2andA2reportingA2(reportsA2toA2CFO)
-A2Treasurer:A2responsibleA2forA2acquisition/managementA2ofA2capital

CurrentA2concernsA2ofA2healthcareA2managersA2-A2Ans---
A2reimbursement:A2takesA2tooA2long/notA2enough
-A2populationA2health:A2theA2healthA2ofA2aA2community
-A2costA2ofA2supplies:A2supplyA2chainsA2areA2struggling

3A2businessA2formsA2-A2Ans--soleA2proprietorship,A2partnership,A2corporation

, PropriertorshipA2-A2Ans--
AA2formA2ofA2businessA2organizationA2withA2oneA2ownerA2whoA2takesA2allA2theA2risksA2and
A2allA2theA2profits.


PartnershipA2advantagesA2andA2disadvantagesA2-A2Ans--Advantages:
EasyA2toA2start
EaseA2ofA2management
NoA2businessA2tax
BetterA2ableA2toA2attractA2financialA2capital
EfficientA2
AttractA2qualityA2employees

Disadvantages:
PartnersA2areA2responsibleA2forA2eachA2otherA2
LimitedA2life
Conflict

CorporationA2-A2Ans--
AA2businessA2ownedA2byA2stockholdersA2whoA2shareA2inA2itsA2profitsA2butA2areA2notA2pers
onallyA2responsibleA2forA2itsA2debts

largeA2organizationsA2andA2nonA2profitA2entitiesA2areA2-A2Ans--corporations

InvestorA2ownedA2vs.A2notA2forA2profitA2corporationsA2-A2Ans--
InvestorA2owned:A2stockholdersA2ownA2theA2corporation,A2haveA2claimA2onA2residentialA2e
arnings,A2areA2taxable

nonA2profit:A2stakeholdersA2whoA2haveA2interestA2ofA2theA2organization,A2noA2taxes

AccountableA2CareA2OrganizationA2(ACO)A2-A2Ans--
AnA2organizationA2ofA2healthcareA2providersA2accountableA2forA2theA2quality,A2cost,A2andA
2overallA2careA2ofA2MedicareA2beneficiariesA2whoA2areA2assignedA2andA2enrolledA2inA2theA
2traditionalA2fee-for-serviceA2program


medicalA2homesA2-A2Ans--team-
basedA2modelA2ofA2careA2thatA2isA2ledA2byA2aA2personalA2physicianA2whoA2providesA2conti
nuousA2andA2coordinatedA2careA2throughoutA2aA2patient'sA2lifetimeA2withA2theA2goalA2ofA2
maximizingA2healthA2outcomes

WhatA2areA2theA24A2characteristicsA2ofA2insurance?A2-A2Ans--PoolingA2ofA2losses
PaymentA2onlyA2forA2randomA2losses
RiskA2transfer
Indemnification