Healthcare Finance 345 Exam 1 (Chapter
1-4)
What are some of the industries in the healthcare sector? - correct answer ✔✔Health services
health insurance
medical equipment and supplies
pharmaceuticals
biotechnology.
What is meant by the term "healthcare finance" as used in the book? - correct answer ✔✔financial and
accounting practices that affect the healthcare of the population
What are the two broad areas of healthcare finance? - correct answer ✔✔Accounting and financial
management
Why is it necessary to have a book on healthcare finance opposed to a generic finance book? - correct
answer ✔✔Healthcare finance is unique as it serves multiple different industries:
not for profit/ for profit
Public/private
What is the difference between a business and a pure charity? - correct answer ✔✔Businesses sustain
themselves financially by selling goods and services.
Charities obtain funds by contributions and then offering free supply.
Role of finance in the healthcare services industry. - correct answer ✔✔Help plan, acquire, and put to
use resources to maximize company efficiency and value.
Help with hospital budgets, financial reporting, investments, and contract managements.
, Hospitals? - correct answer ✔✔provide diagnostic and therapeutic services to individuals who require
more than several hours of care.
Ambulatory care? - correct answer ✔✔outpatient care, services provided to noninstitutionalized
patients.
Home health care? - correct answer ✔✔care provided in the home, can be alternative to nursing home
care for most patients.
Long term care? - correct answer ✔✔Service to individuals who require an extended period of time.
Includes nursing homes, skilled nursing facilities, and intermediate care facilities.
Integrated delivery system? - correct answer ✔✔A single organization that offers a broad range of
healthcare services in a unified manner.
What are the benefits attributed to integrated delivery system? - correct answer ✔✔Lower cost settings
better quality and patient satisfaction.
What role does regulation play in the health services industry? - correct answer ✔✔help protect the
health, safety, and welfare of the public.
It establishes minimum standards that must be met to provide a service.
What is the structure of the finance function within health services organization - correct answer
✔✔The structure of the finance department generally follows CFO (chief financial officer), and CEO
(chief executive officer). The CFO reports to the CEO. The CFO directs two managers who help manage
finance activities. They are the comptroller and treasurer.
What is the primary legal issue facing providers today? - correct answer ✔✔Professional liability.
increases premiums for physicians
deters hospitals from practicing specialized procedures
can result in defensive medicine
1-4)
What are some of the industries in the healthcare sector? - correct answer ✔✔Health services
health insurance
medical equipment and supplies
pharmaceuticals
biotechnology.
What is meant by the term "healthcare finance" as used in the book? - correct answer ✔✔financial and
accounting practices that affect the healthcare of the population
What are the two broad areas of healthcare finance? - correct answer ✔✔Accounting and financial
management
Why is it necessary to have a book on healthcare finance opposed to a generic finance book? - correct
answer ✔✔Healthcare finance is unique as it serves multiple different industries:
not for profit/ for profit
Public/private
What is the difference between a business and a pure charity? - correct answer ✔✔Businesses sustain
themselves financially by selling goods and services.
Charities obtain funds by contributions and then offering free supply.
Role of finance in the healthcare services industry. - correct answer ✔✔Help plan, acquire, and put to
use resources to maximize company efficiency and value.
Help with hospital budgets, financial reporting, investments, and contract managements.
, Hospitals? - correct answer ✔✔provide diagnostic and therapeutic services to individuals who require
more than several hours of care.
Ambulatory care? - correct answer ✔✔outpatient care, services provided to noninstitutionalized
patients.
Home health care? - correct answer ✔✔care provided in the home, can be alternative to nursing home
care for most patients.
Long term care? - correct answer ✔✔Service to individuals who require an extended period of time.
Includes nursing homes, skilled nursing facilities, and intermediate care facilities.
Integrated delivery system? - correct answer ✔✔A single organization that offers a broad range of
healthcare services in a unified manner.
What are the benefits attributed to integrated delivery system? - correct answer ✔✔Lower cost settings
better quality and patient satisfaction.
What role does regulation play in the health services industry? - correct answer ✔✔help protect the
health, safety, and welfare of the public.
It establishes minimum standards that must be met to provide a service.
What is the structure of the finance function within health services organization - correct answer
✔✔The structure of the finance department generally follows CFO (chief financial officer), and CEO
(chief executive officer). The CFO reports to the CEO. The CFO directs two managers who help manage
finance activities. They are the comptroller and treasurer.
What is the primary legal issue facing providers today? - correct answer ✔✔Professional liability.
increases premiums for physicians
deters hospitals from practicing specialized procedures
can result in defensive medicine
