Many facilites employ or contract with ________________________ to perform accounting/financial analysis
large corporations
What has led to
... [Show More] increased healthcare costs?
-"Defensive medicine"
-uninsured
-prescriptions
-living longer
-more care
-lifestyle choices
-technology advances
-chronic disease
What has led to decreased healthcare costs?
-preventative care
-technology (limiting error)
-education
-improved management techniques
-EMR
-generic drugs
-workplace wellness
-increase cost-conciousness
-evidence-based medicine
-value-based purchasing
Proprietary
-profit oriented
-pay all taxes
-corporation, partnership, individuals
Not-for-Profit
-not profit oriented
-do not pay income, property, or sales tax
-voluntary or government
Whats an example of how an organizational structure might influence a LTC administrators role in financial management
-how involved they are in finances
-how they look at/interpret finances
Managerial Accounting
-compares results against goals
-determines reason for variations
-helps identify corrective action
-forecasting and planning
-analyze information
Financial Accounting
-records transactions
-classifies transactions
-reconciles records
-summarizes transactions
-presents financial data
The Accounting Period
A period of time covered by an accounting report (typically one year)
What is the basic accounting equation?
Assets = Liabilities + Equity
Accrual accounting method
Accounting method generally used in healthcare
Why do many organizations hire financial specialists?
The rules and regulations that follow CMS require special forms/paperwork and very specific protocol. To make sure everything is done correctly, a person who is well-informed in that area is an ideal addition to any facility.
Bookkeeper
handles many of the important entries that are eventually passed on to the facilities accountant
What is another term for the income statement?
Profit and loss statement
Balance sheet
examines financial status at a point in time
Income Statement
examines financial activity over a period of time
Examples of commonly used integrated financial electronic health records information systems?
Acute care= EPIC
Long-Term care= PCC and Matrix
SNFs commonly set up their Chart of Accounts to mimic what?
Medical Cost Reports
What is the purpose of conducting a financial audit? Who usually conducts an organizations audit?
Validating accuracy of balance sheet information conducted outside CPA firm
Describe the major difference between cash vs. accrual accounting.
Which type is most commonly used in healthcare?
Difference is that you record transactions at the time it occurs vs when the cash changes hands.
Accrual
Asset
Anything of value that is owned
EX:
-cash
-accounts receivable
-inventory
-lands
-building [Show Less]