Chapter 1: Introduction to Healthcare
Finance
healthcare financing - correct answer ✔✔the system that a society uses to pay for healthcare services
health services organizations - correct answer ✔✔those that provide patient care services. Examples
include hospitals, medical practices, clinics, and nursing homes. Also called providers.
accounting - correct answer ✔✔the measurement and recording of events that reflect the operations,
assets, and financing of an organization
financial management - correct answer ✔✔the use of theory, principles, and concepts developed to help
managers make better financial decisions
chief financial officer (CFO) - correct answer ✔✔The senior manager (or top finance dog) in a large
organization's finance department. Also called vice president-finance.
comptroller - correct answer ✔✔the finance department manager who handles accounting, budgeting,
and reporting activities
treasurer - correct answer ✔✔the finance department manager who handles capital acquisition,
investment management, and risk management activities.
business (practice) manager - correct answer ✔✔the manager responsible for the finance function in a
small healthcare organization, such as a medical practice with one or a few clinicians
horizontal system - correct answer ✔✔a single business entity that owns a group of similar providers,
such as hospitals
, vertical system - correct answer ✔✔a single business entity that owns a group of related, but not
identical, providers, such as hospitals, medical practices, and nursing homes
the joint commission - correct answer ✔✔the accreditation body for hospitals and other health services
organizations
general acute care hospital - correct answer ✔✔a hospital that treats all conditions that require a
relatively short hospitalization (e.g., less than 30 days)
specialty hospital - correct answer ✔✔a hospital that treats patients with a common characteristic or
condition, such as a children's or cancer hospital
government hospital - correct answer ✔✔a hospital that is owned by a gov't entity. Federal hospitals are
owned by the federal government, while public hospitals are owned (or funded) by state or local
governments
private not-for-profit hospital - correct answer ✔✔a hospital that is not governmental but is operated for
the exclusive benefit of the community
investor-owned hospital - correct answer ✔✔a hospital that is owned by investors who benefit
financially from its operation. Also called a for-profit hospital.
ambulatory (outpatient) care - correct answer ✔✔care that is provided to patients who are not
institutionalized. Typical settings include physicians' offices, outpatient surgery centers, and walk-in
clinics
Long-term care - correct answer ✔✔care that is provided in either an institutional or outpatient setting
that covers an extended period of time
patient capture - correct answer ✔✔the concept that once a patient enters the system at one point (e.g.,
a doctor's office), all services needed by that patient will be provided within the system
Finance
healthcare financing - correct answer ✔✔the system that a society uses to pay for healthcare services
health services organizations - correct answer ✔✔those that provide patient care services. Examples
include hospitals, medical practices, clinics, and nursing homes. Also called providers.
accounting - correct answer ✔✔the measurement and recording of events that reflect the operations,
assets, and financing of an organization
financial management - correct answer ✔✔the use of theory, principles, and concepts developed to help
managers make better financial decisions
chief financial officer (CFO) - correct answer ✔✔The senior manager (or top finance dog) in a large
organization's finance department. Also called vice president-finance.
comptroller - correct answer ✔✔the finance department manager who handles accounting, budgeting,
and reporting activities
treasurer - correct answer ✔✔the finance department manager who handles capital acquisition,
investment management, and risk management activities.
business (practice) manager - correct answer ✔✔the manager responsible for the finance function in a
small healthcare organization, such as a medical practice with one or a few clinicians
horizontal system - correct answer ✔✔a single business entity that owns a group of similar providers,
such as hospitals
, vertical system - correct answer ✔✔a single business entity that owns a group of related, but not
identical, providers, such as hospitals, medical practices, and nursing homes
the joint commission - correct answer ✔✔the accreditation body for hospitals and other health services
organizations
general acute care hospital - correct answer ✔✔a hospital that treats all conditions that require a
relatively short hospitalization (e.g., less than 30 days)
specialty hospital - correct answer ✔✔a hospital that treats patients with a common characteristic or
condition, such as a children's or cancer hospital
government hospital - correct answer ✔✔a hospital that is owned by a gov't entity. Federal hospitals are
owned by the federal government, while public hospitals are owned (or funded) by state or local
governments
private not-for-profit hospital - correct answer ✔✔a hospital that is not governmental but is operated for
the exclusive benefit of the community
investor-owned hospital - correct answer ✔✔a hospital that is owned by investors who benefit
financially from its operation. Also called a for-profit hospital.
ambulatory (outpatient) care - correct answer ✔✔care that is provided to patients who are not
institutionalized. Typical settings include physicians' offices, outpatient surgery centers, and walk-in
clinics
Long-term care - correct answer ✔✔care that is provided in either an institutional or outpatient setting
that covers an extended period of time
patient capture - correct answer ✔✔the concept that once a patient enters the system at one point (e.g.,
a doctor's office), all services needed by that patient will be provided within the system
