Introduction to Healthcare Finance

Question 1

Viewpoints of healthcare organizations

Answer 1

• The financial view: these managers work with finance daily.
• The process view: these managers work with the system of the organization.
• The clinical view: these managers are usually responsible for service delivery.

Question 2

The Elements of Financial Management

Answer 2

1. Planning
2. Controlling
3. Organizing and directing
4. Decision making

Question 3

Types of healthcare organization

Answer 3

1.Profit Oriented: individual, partnership and corporation

2. Nonprofit Voluntary: church-associated, private school-associated, and foundation associated
3. Nonprofit Government: Federal, state, country, city, city-country, hospital district, and state university

Question 4

Types of Accounting

Answer 4

• Financial: for outside/third parties reporting under generally accepted accounting principles.
• Managerial: for inside or internal use, and is not bound by accepted accounting principles.

Question 5

Finance Management Challenges

Answer 5

1. Financial concerns
2. Reimbursement and regulation
3. Indigent care costs and bad debt losses
4. Balancing financial and quality issues
5. Revenue cycle improvement
6. Access to capital (financing)