IV. Managing Finances Flashcards
(44 cards)
Income statement or revenue/expense spreadsheet
Budget statement
Shows revenue generated and expenses incurred over a period of time
(month, quarter, year)
Income statement
Formula of Net income
Net income = revenue generated — expenses incurred
Shows the financial situation of the organization at a specific point in
time
Balance sheet
This sheet contains current assets (cash, patient receivables, inventory),
current liabilities (accounts payable, accrued salaries), property and
equipment (land, building, equipment, and instruments), and long-term
obligations (bonds payable, loans).
Balance sheet
Equation of assets
assets = liabilities + net worth
Show the inflow and outflow of cash for a specific period
Cash-flow statements
These statements show the net cash flow from operations, net flow from
investments, and net cash flow from financial activities
Cash-flow statements
Miscellaneous data needed by managers
Test volumes per laboratory
section,
supply costs,
labor costs,
cost per billable test,
workload,
rejection
rates,
contamination rates,
and productivity
Usually done annually as a plan for spending for the next year
Budgets
Incorporates workload data, new programs, test costs, previous year
revenues, previous year costs, capital equipment costs, operating expenses,
labor costs, and equipment maintenance costs
Budgets
Most organizations use data from the previous year, then estimate
increased costs for the coming year and add this figure to the budget.
Budgets
Zero-based budgeting involves starting the budget process from a zero
figure and justifying and researching every cost that will be incurred
before arriving at the final budget.
Budgets
The federal government pays healthcare organizations for providing
care to beneficiaries using a method called
Prospective Payment
System (PPS).
Healthcare organizations are paid a lump sum for services according to
the ___ for outpatient services
Ambulatory Payment Classification (APC)
Healthcare organizations are paid a lump sum for services according to
the ___ for inpatient services
Diagnosis-Related Group (DRG)
is a Medicare
coding system for reimbursement at the procedural level
Current Procedural Terminology (CPT)
The government established a database and derived average costs for
many illnesses based on the
International Classification of Disease
(ICD-9).
For outpatient services, the healthcare provider is paid a _____ to
provide specific services per HMO enrollee.
set fee
This method is based on the
number of enrollees at a specific payment amount per enrollee.
capitated reimbursement
are what it costs to produce test results. This includes
direct and indirect costs
Operating costs
are directly associated with producing test results. These
include supplies and labor
Direct costs
indirectly contribute to producing laboratory tests.
Indirect costs
These
include electricity, water, paper towels, soap, bleach, computer software,
and the labor that supports these services, as well as supervisory,
managerial and administrative labor.
Indirect costs
