Finance Test 1 || with Complete Solutions.

Management functions correct answers key functions of a manager including planning, organizing, staffing, directing & controlling Management connective processes correct answers mgmt functions that connect elements of the healthcare org. including communicating, coordinating and decision making Joint Commission correct answers primary accrediting organization for healthcare orgs. Healthcare Financial Mgmt Association (HFMA) correct answers Association of healthcare financial managers; confers two certifications, certified Healthcare Financial Professional and Fellow of the Healthcare Financial Mgmt Association Ratio analysis correct answers financial analysis tool that compares various key financial indicators. Examples include debt to equity and revenue to assets (also called asset turnover) Capital analysis correct answers process to determine how much a capital expenditure will cost and what return it will generate third-party payer correct answers an entity, such as an insurance company, that pays for health care for another entity, such as a patient. Such payers are called this b/c they do not deliver the healthcare service nor receive it; they are the 3rd party involved in a healthcare transaction. Prospective payment correct answers healthcare payment system in which a healthcare org. accepts a fixed, predetermined amount to treat a patient, regardless of the true ultimate cost of that treatment, DRGs are one type; Medicare pays hospitals a fixed amount for an episode of treatment based on that treatment's DRG. capitated price, capitation correct answers a healthcare payment system in which an org. accepts a monthly payment from a third-party payer for each individual covered by that payer's plan, regardless of whether a given individual is treated in a given month Capitation provides a financial incentive to a healthcare org. to keep its population from using more healthcare services than necessary because... correct answers the org. only profits if the total cost of treating the specified population falls below the total capitation provided by the third-party payer. Sentinel indicator correct answers indicator alerts a manager every time a particular event occurs. For example, an emergency dept. manager may be alerted every time a patient in the dept. goes into cardiac arrest Rate-based indicator correct answers indicator alerts a manager only when a measure reaches a particular tipping point. For example, an emergency dept. manager may be alerted when the # of empty beds in the dept. falls below a certain level.