Ch 1 Flashcards
Describe the industries in the healthcare sector
Health Services
Health Insurance
Medical Equipt & Supplies
Pharm & BioTech
Other
What is meant by the term “healthcare finance”
Consists of both accounting and financial management
Business vs pure charity
Business: obtains capital from the marketplace, uses capital to buy land, buildings, and equipment, operates on those assets to create goods or services, then sells those goods or services to create revenue
Pure Charity: obtains capital through contributions, uses capital to supply free services
Role of finance in the health services industry
To plan for, acquire, and use resources to maximize the efficiency and value of the enterprise
Comptroller
Responsible for accounting and reporting activities
Treasurer
Responsible for the acquisition and management of capital
What are the benefits attributed to IDSs?
coordinates patient care across conditions, providers, and time to achieve care that is safe, timely, effective, and patient focused
What is the major concern of healthcare managers?
How to improve financial performance without impacting clinical performance
What are the three primary forms of business orgs? Dis/Advantages of each
Proprietorship: Business owned by 1 individual
Partnership: Business owned by 2 or more without incorporating
Easy to start, owners have unlimited personal liability for debts, life of business limited to owners life
Corporations: legal entity distinct and separate from its owners
Unlimited life, easy to transfer ownership, limited liability
Investor owned vs NFP corporations
Investor owned: owners are well defined and exercise control of the business, residual earnings belong to owners, subject to taxation
NFP: no owners, must operate for the public, tax exempt
Briefly describe the main provisions of healthcare reform and it’s implications
The ACA aims to expand healthcare coverage through shared responsibility between government, individuals, and employers
Describe the primary features of ACOs and medical homes as well as their benefits
ACO: a network of healthcare workers that share responsibility for providing coordinated care to patients. Receive financial incentives to cooperate and reduce costs
Medical Home: a team based model of care led by a personal physician who provides continuous and coordinated care throughout a patients lifetime to maximize health outcomes
