FINANCIAL MANAGEMENT IN HEALTH CARE CHAPTER 4 QUESTIONS AND ANSWERS

LEADERSHIP: CHAPTER 4: FINANCIAL MANAGEMENT IN HEALTH CA
cf cf cf cf cf cf cf



RE:

FINANCIAL MANAGEMENT IN HEALTH CARE
CHAPTER 4 QUESTIONS AND ANSWERS

AccountablecfCarecfOrganizationcf-cfanswer--
Onecfbillingcfoccurscfacrosscfthecftransitioncfofcfcare.cfGenerallycfthecfbettercfthecfqualitycfofcfcare,cfthecfbettercfthecfreimbu
ement.

BottomcfLinecf-cfanswer--Incomecfofcfancforganizationcfthatcfiscfthecfresultcfofcfrevenuecf(moneycfearned)cfminuecfexpense

Budgetcf-cfanswer--Detailedcffinancialcfplancfforcfcarryingcfoutcfthecfactivitiescfofcfancforganizationcforcfunit.

BudgetcfVariancecf-cfanswer--Differencecfbetweencfactualcfbudgetcfandcfactualcfspending.

CapitalcfBudgetcf-cfanswer--Financialcfplancfthatcfdealscfwithcfpurchasescfofcfcapitalcfassetscf(equipment,cfland,cfetc.)

CashcfBudgetcf-cfanswer--Financialcfplancfthatcftrackscfcashcfreceivedcfandcfspent.

CashcfoncfHandcf-cfanswer--Amountcfofcfcascfreadilycfavailablecftocfthecforganization.

CenterscfforcfMedicarecf&cfMedicaidcfServicescf(CMS)cf-cfanswer--
FormerlycfknowncfascfthecfHealthcarecfFinancingcfAdministration,cfthecffederalcfagencycfthatcfadministerscfMedicare,cfM
icaid,cfStatecfChildren'scfHealthcfInsurancecfProgramcf(SCHIP),cfandcfseveralcfothercfhealth-relatedcfprograms.

Continuumcfofcfcarecf-cfanswer--
Matchingcfancfindividual'scfongoingcfneedscfwithcfthecfappropriatecflevelcfandcftpecfofcfmedical,cfpsychological,cfhealth,cfo
socialcfcarecfofcfservicecfwithincfancforganizationcforcfacrosscfmultiplecforganizations.

For-profitcfOrganizationscf-cfanswer--
Organizationscfwithcfstatedcffinancialcfstructurescfthatcfincludecfprofitcfgoalscfandcftaxcfliabilities.

HealthcfMaintenancecfOrganizationcf(HMO)cf-cfanswer--Geographicallycforganizedcfsystemcfthatcfprovidescfancfagreed
oncfpackagecfofcfhealthcfmainentancecfandcftreatmentcfservices.

IndirectcfCostscf-cfanswer--
Generalizedcfcostscf(housekeeping,cfinformationcftechnology,cfetc)cfforcfsupportcfofcfthecfprogramcfandcfbilledcftocfthecfpr
ram;cfoftencfcalledcfsupportcfcosts.

ManagedcfCarecf-cfanswer--
Linkagecfbetweencfthecffinancingcfandcfdeliverycfofcfservicescfincfsuchcfacfwaycfascftocfpermitcfpayerscftocfexercisecfcontrol
vercfthecfdeliverycfofcfservices.

Medicaidcf-cfanswer--Jointcffederalcfandcfstatecfassistancecfprogramcfdesignedcftocfpaycfforcfmedicalcflong-
termcfcarecfassistancecfforcfindividualcfandcffamiliescfwithcflowcfincomecfandcflimitedcfresources.



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, LEADERSHIP: CHAPTER 4: FINANCIAL MANAGEMENT IN HEALTH CA
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Medicarecf-cfanswer--
RE:
Healthcfinsurancecfprogramcfforcfpeoplecfagecf65cfandcfoldercforcfundercf65cfwithcfcertaincfdisabiltiescforcfanycfagecfwithcfen
stagecfrenalcfdisease.

Not-for-profitcfOrganizationscf-cfanswer--
Organizationscfwithcffinancialcfstructurescfthatcfprojectcffinancialcfgoalscfwithcfparticularcftaxcfandcflegislativecfprotectionc
fshelters.



Operatingcf(expense)cfbudgetcf-cfanswer--Financialcfplancfforcfthecfday-to-daycfactivitiescfofcfthecforganizations.

PersonnelcfBudgetcf-cfanswer--
Partcfofcfthecfoperatingcfbudgetcfthatcfdealscfwithcfpersonnelcfneededcftocfdelivercfcare,;cfcomposedcfofcfsalarycfandcfbene
costs.

PreferredcfProvidercfOrganizationcf(PPO)cf-cfanswer--
Managedcfcarecfcompanycfthatcfcontractscfwithcfhealthcfcarecfproviderscf(bothcfphysicianscfandcfhospitals)cfandcfpayersc
elf-
insuredcfemployers,cfinsurancecfcompanies,cforcfmanagedcfcarecforganizations)cftocfprovidecfhealthcfcarecfservicescftocf
definedcfpoplulationcfforcfpredertminedcffixedcffees.

Revenuescf-cfanswer--Incomecfreceivedcfforcfgoodscforcfservicescfprovided.

Value-basedcfpurchasingcf-cfanswer--Reimbursementcfforcfhealthcfcarecfservicescfbasedcfoncfqualitycfofcfcare.

VariablecfCostscf-cfanswer--Costscfthatcfvarycfincfrelationcftocfvolumecfandcfproductivity.

Ancfexamplecfofcfancfindirectcfcostcfis:
A.cfCostcfCenter
B.cfInformationcftechnology
C.cfNursingcfstaff
D.cfDeliverycfofcfcarecf-cfanswer--Ans:cfA

Thecfdifferencecfbetweencfactualcfbudgetcfandcfactualcfspendingcfiscfreferredcftocfas:
A.cfBudgetcfvariance
B.cfFixedcfcost
C.cfCashcfoncfhand
D.cfRevenuescf-cfanswer--Ans:cfA

___________________cfdelivercfcomprehensivecfhealthcfmaintenancecfandcftreatmentcfservicescfforcfacfgroupcfofcfenro
edcfindividuals.
A.cfHealthcfmaintenancecforganizationscf(HMOs)
B.cfPreferredcfprovidercforganizationscf(PPOs)
C.cfIndependentcfPracticecfAssociationscf(IPAs)
D.cfPrimarycfCarecfProviderscf(PCPs)cf-cfanswer--Ans:cfA

Ancfexamplecfofcfancfindirectcfcostcfwouldcfbe:
A.cfHousekeepingcfStaff
B.cfInkcfforcfacfprintercfoncfthecfunit
C.cfUniformcfallowancecfforcflicensedcfpracticalcfnurses
D.cfRegisteredcfnursecfsalarycf-cfanswer--Ans:cfA

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