HSMP 3500 Exam 1

What is healthcare finance?

the practice of finance within healthcare organizations

What management functions does healthcare finance include

accounting and financial management

What is the role of health finance

plan for, acquire, and utilize resources to maximize the efficiency (and value) of the organization

What does accounting entail

budgeting, books, etc.

what does financial management entail

planning and managing resources

What does the first C stand for

Costs

What does the second C stand for

CashE

What does the third C stand for

Capital

What does the fourth C stand for

Control

What does costs mean

must be continuously monitored to ensure that they are not excessive for the amount of services provided

what does cash mean

businesses must have sufficient funds on hand to meet payment obligations as they occur

what does capital mean

businesses must raise money necessary to buy the facilities and equipment to provide services

what does control mean

businesses must maintain their resources to ensure that they are used wisely

Why is healthcare finance more important than ever?

american health care system is by far the most expensive in the world

What is an integrated delivery system?

a network of healthcare providers that work together to provide a full range of healthcare services

What are the benefits of an integrated delivery system

Improved care coordination, enhanced access to care, greater efficiency, potential for lower costs

What does CFO stand for

Chief financial officer

What is a CFO’s role

They are responsible for managing the company’s financial actions

What are the primary responsibilities of a treasurer in a healthcare organization

cash management, investment management, debt management, financial risk management

Four primary settings in healthcare

hospitals, ambulatory care centers, long-term facilities, home healthcare

What’s the key differences between a non-profit and a charity

a non-profit can generate revenue, but any surplus must be reinvested into the organization’s mission. A charity typically receives tax-deductible donations

What are the four major categories of business

sole proprietorship, partnership, corporation, limited liability company

what is a sole proprietorship

owned and operated by one person

what’s a partnership

operated by 2 or more people

what’s a corporation

a separate legal entity from its owners

what’s LLC

blends the features of partnerships and corporation

What does IPO stand for

initial public offering

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