C- Corporation
A traditional for- profit corporation
S Corporation
A for-profit corporation with a limited number of stockholders that, after
... [Show More] filing an application with the Internal Revenue Services, is taxed as a proprietorship or partnership
LLP
Limited Liability Partnership; a partnership that limits the professional(malpractice) liability of its members
For-Profit
a legal business entity that is separate and distinct from its owners and managers
Not-for-Profit
businesses that are owned by the community at large and are controlled b a board of trustees. They are exempt from local, state, and federal income and property taxes.
Pooling
the spreading of losses over a large group of individuals or organizations
Random Loss
an unpredictable loss, such as that results from a fire or hurricane
Moral Hazard
the risk to an insurer that excess healthcare services are being consumed because individuals do not bear the full cost of the services provided
Deductible
the dollar amount that must be spent on healthcare services before any benefits are paid by the insurer
Self-Insurers
make a conscious decision to bear the risks associated with healthcare costs and set aside funds to pay for costs they may incur in the future
Public Insurers
Medicare, Medicaid, workers' compensation, TRICARE
Medicaid
a joint federal-state health insurance program that primarily covers low-income individuals and families; the federal government funds about half of the costs of the program while the state pays the remainder
Medicare
a federal health insurance program that primarily covers elderly individuals that are 65 or older; consists of 4 major parts: Part A: covers inpatient services, Part B: covers outpatient services, Part C: is managed care coverage that places Part A and B, Part D: covers prescription drugs
Pay for performance
a reimbursement system that rewards providers for meeting specific goals
Variable Costs
costs that are related to or depend on volume
Average cost
the total costs divided by the volume
Cost allocations
the assignments of overhead costs such as financial services costs from a support department to the patient services departments
Zero-based budgeting
a budget that starts with a zero balance on the budget; department managers must fully justify every line item on the basis of expected volume
Expense budget-
a list of expected expenses of an organization, usually by department and service and further broken down into components such as facilities, labor, and supplies
Variance analysis
an examination and interpretation of what has actually happened versus what is expected to happen
The accounting function within business is broken down into two major area which are?
Managerial and Financial
How many cost allocation methods are there?
3
Which is not a step required to implement Activity Based Costing (ABC)?
Calculate the total cost of the service by traditional costing services
What method is the most difficult to understand and to implement?
Reciprocal
What are the Four Cs?
Cost measurement and minimization, Cash management, Capital acquisition, Control of resources
What does the term "healthcare finance" mean?
Encompasses the accounting and financial management functions of healthcare obligations
What are the major differences between investors-owned and not-for-profit corporations?
Investors-owned are created to make a profit and must pay taxes on earnings before dividends are distributed. Not-for-profit do not make a profit and are exempt from paying taxes
What are the different types of partnerships?
Limited Liability Partnership, Limited Liability Company, Professional Corporation
Commercial Health Insurance
traditionally was issued by life insurance and casualty insurance companies
What is a cost pool?
A group of overhead costs to be allocated to the patient services department
What is a simple budget?
The original budget, unadjusted for actual volume
A rolling budget is a?
Continuous Budget
The average cost of each inpatient stay is?
Cost per Discharge
The average profit made each inpatient stay is?
Profit per Discharge
What is the amount of inventory held to meet expected usage?
Base Stock
A value used to assess one element of performance is called what?
Metric
What is the fourth phase of revenue cycle activities?
Those that are continuous
Chapter 6 covers important managerial activities, what are they?
Planning and Budgeting
Which is not one of the four phases of the revenue cycle?
46%
What happens when a borrower defaults?
Borrower fails to make promised payment
What are the benefits of payback?
Accepted up to 5 years
Which risk assessment technique covers financial and nonfinancial factors?
Project Scoring
What do you call a cash flow that was for last year on a lifelong project that has lost its value?
Terminal Value
An External examination of financial statements by outside parties?
External Audit
What does GAAP stand for?
Generally Accepted Accounting Principles
What is found on the income statement?
Revenues, Expenses, Net Income
Depreciation Expenses
from the purchase of a long-lived asset such as building and equipment
Non-Operating income is?
An income unrelated to provision of patient services
The process of creating and analyzing ratios from the data found in the business's financial statements are?
Ratio Analysis
1.)What happens when a borrower defaults?
a. failure to borrow to make a promised payment
2.) What are the benefits of payback?
d. accepts paybacks up to 5 years
3.) Which risk assessment technique covers financial and nonfinancial factors?
d. project scoring
4.) What do you call a cash flow that was for last year on a lifelong project that has lost its value?
d. terminal value
5.) An external examination of financial statements by outside parties?
b. external audit
6.) What does GAAP stand for?
b. generally accepted accounting principles
Different types of partnerships
LLP
LLC
PC
Traditionally was issued by life insurance and casualty insurance companies
commercial health insurance [Show Less]