Financial Management Flashcards
What are the three general functions of finance system?
1) Controllership, 2) Financial management, 3) Auditing
What are the two different transactions?
Revenue transactions–those that provide elements of care to patients or other services such as meals to families. Expense Transactions–those that acquire resources such as personnel, supplies, and equipment. Physical Transactions–hours worked, drugs used, patient days of care.
Accounting attaches a transaction to what?
A dollar value and a mission-related category.
Revenue trasactions record virtually all the HCO’s routine cash acquisition except what?
gifts, loans, and sales of assets.
General ledger is what?
A record of all the firm’s transactions of fixed and collective assests (to include depreciation, that must be allocated to operational units.
The value of most transactions are set by what?
The market
What is depreciation?
An estimate of the lost in value of buildings and equipment based on an arbitrary assumption about the future life; the true change in value is unknown.
Inpatient care is priced as a package based on what?
Diagnosis-related group (DRGs)
What are the four financial reports?
Balance Sheet, Income or profit-and-loss statement, statmenet of sources and uses of funds, statement of changes in fund balances.
All audited income statments and balence sheets must be reported to who for Medicare?
Federal Government. The reports are accessible to the public under the Freedom of Information act. Not-for profit have to report activies through the IRS Form 990. The IRS can eliminate an HCO’s tax execmpation in whole or in part.
What is net revenue?
The actual amount paid (this is the meaniful value…not gross).
What are bad debts?
costs for patients who were expected to pay but did not do so.
What is charity care?
care given to the needy without expectation of repayment.
