The financial environment is ______ and ___________ _____.
Fluid
Reimbursement driven
Goal of Financial Management
make organizations work more
... [Show More] effectively
What has led to increased HC costs?
Aging population, uninsured, newly insured under ACA, Rx drugs, use of more advanced tech, chronic disease, "defensive medicine"
What has led to a decrease in HC costs?
Evidence based medicine, retail HC, more generic drugs, increased cost conscious, more outpatient/home services
What are the 4 main elements of financial management?
Decision making, planning, controlling, organizing and directing
What is the element of decision making?
make choices among available alternatives
What is the element of planning?
Identify steps that must be taken to accomplish an organizations objectives
What is the element of controlling?
Make sure that each area of the organization is following the plans that have been established
What is the element of organizing and directing?
Decide how to use organizational resources that most effectively carry out established plans
What is a Proprietary HC organization?
Pay all taxes
Corporations, partnerships or individuals
Profit orientated
What is a not-for-profit health care organization?
Do not pay income, property or sales tax
(do pay payroll tax)
Voluntary or government
Give an example of how an organizational structure might influence a LTC administrator's role in financial management?
If there's a governing body, the Admin is not @ the top and might need approval from upper
What is managerial accounting?
Internal Use
Used by managers
Not bound by GAAP
Prospective as well as retrospective
What is financial accounting?
External use, third party
Emphasizes external reporting
Must use GAAP
Retrospective
A 1 year accounting period is generally refers to as _______ _____ ______.
Organizationals fiscal period
What is the basic accounting equation?
Assets = Liabilities + Owner's Equity [Show Less]