Chap 1

Question 1

Healthcare finance

Answer 1

healthcare finance encompasses the accounting and financial management functions of healthcare organizations

Question 2

financial management

Answer 2

The use of theory, principles, and concepts developed to help managers make better financial decisions

Question 3

primary role of finance in health services organizations

Answer 3

plan for, acquire, and use resources to maximize the efficiency of the organization

Question 4

Four c’s of finance activities in healthcare org’s.

Answer 4

cost measurement and minimization, (2) cash management, (3) capital acquisition, and (4) control of resources.

Question 5

comptroller

Answer 5

The finance department manager who handles accounting, budgeting, and reporting activities

Question 6

treasurer

Answer 6

finance department manager who handles capital acquisition, investment management, and risk management activities.

Question 7

business manager

Answer 7

The manager responsible for the finance function in a small healthcare organization

Question 8

horizontal system

Answer 8

A single business entity that owns a group of similar providers, such as hospitals.

Question 9

general acute care hospital

Answer 9

A hospital that treats all conditions that require a relatively short hospitalization (e.g., fewer than 30 days)

Question 10

certificate of need (CON)

Answer 10

is the approval required by many states before a new healthcare facility can be constructed

Question 11

cost-containment programs

Answer 11

State programs that require providers (primarily hospitals) to submit budgets each year for approval