ACHE - Governance and Organizational Structure All Answers Correct

ACHE - Governance and Organizational Structure All Answers Correct 1. Strategic Business Unit A distinct division, product line, or profit center within an organization that concentrates on a specific product line or market segment to drive profitability. ️ 2. Span of Control The ideal number of subordinates a manager should supervise effectively. ️ 3. Reserved Powers Authority that is permanently allocated to the central corporation within a multi-corporate structure. ️ 4. Mission The overarching purpose of the healthcare organization, outlining its intentions to benefit the community and contribute to various objectives related to service, cost/finance, population health, and responsible stewardship. ️ 5. Management Letter A correspondence from auditors to management and governing boards accompanying the audited financial statements, offering recommendations based on observations made during the audit and addressing issues relating to organizational structure and efficiency. ️ 6. Licensed Independent Practitioner An individual authorized by law to provide healthcare services independently, operating within the limits of their state-conferred license and granted clinical privileges. ️ 7. Joint Venture A collaborative corporation jointly owned by two or more independent entities, featuring capital contributions from all partners and shared governance and management responsibilities. ️ 8. Governance Bylaws A formal corporate document detailing the quorum, order of proceedings, roles of standing committees and officers, and other necessary protocols for conducting organizational business. ️ 9. External Auditor A certified public accounting firm that evaluates whether an organization's accounting practices are robust and whether its financial statements accurately reflect its business status. ️ 10. Division of Labor The process of separating work into distinct tasks performed by various workers, enabling individuals to develop high proficiency in specific components of the overall process. ️ 11. Consent Agenda A collection of agenda items that are approved collectively without discussion unless a member requests further review, allowing focus on priority issues. ️ 12. Compliance Program An initiative developed to ensure that the organization adheres to regulations and statutes based on accreditation and regulatory standards. ️ 13. Clinical Staff Organization The structured framework for managing an HCO's clinical staff, designed to implement policies, maintain quality clinical care standards, and facilitate communication between physicians and the governing body. ️ 14. Clinical Staff Bylaws An official document that outlines the governance procedures for physicians and licensed independent practitioners within the organization, and is ratified by the governing body; often referred to as medical staff bylaws. ️ 15. Chain of Command The hierarchical structure of authority and reporting relationships that extends from the highest level of management down to the lowest level. ️