Financial Management Flashcards
Refers to Supply, labor, and overhead money spent on a product
Cost
Importance of identifying cost
- To accurately price tests
- Determine when and how to offer new test
- Determine whether to acquire new outreach client business
Expenses that can easily be traced to an end Product— billable test
Direct cost
Not directly responsible to billiable test but necessary for its production
Indirect cost (aka: overhead cost)
Cost thst varies depending on the test volume
Variable costs
Do not changed with the volume of tests performed
Fixed cost
50-70% of thr lab budget
Salary cost
Expenses incurred to produce a product or service
Operating and capital cost
3 criteria before it recognizdd as a capital item
Time
Price
Purpose
Annual loss of a capital item’s value is called
Depreciation
Determined the total direct labor and supply cost of producing a tesst
Micro- testing
A batch of test sample that are tested on a 24-hr period or a shift
Test run
Test run is composed of:
Test sample
Calibration
QC
Distributes the total direct cost of a run over the patient results
Cost per reportable results
Cost of producing one additional test
Incremental cost
Cost of a total direct and indirect cost
Fully loaded cost
Balance remaining after the fully loaded cost are deducted
Contirbuted margins
Total price of services rendered
Revenue
Total charges at a facility’s fully established rate
Gross patient revenue
Gross inpatient and outpatient revenue minus all related deduction
Net patient revenue
Difference between billing at full- established rates and amounts received from third-party payers
Contractual adjustments
Process of buying, learning of the need, and selecting supplies
Purchasing
Priority of need is categorised as follows:
Essential
Necessary
Desirable
Other
Refers to scheduled preventive maintenance
Maintenance
