Key Concepts related to revenues and expenses

Question 1

Cost centers

Answer 1

manner of referring to the grouped costs associated with a set of activities within organizational structure

Question 2

gross revenues

Answer 2

aggregate, cumulative or total some of revenue before deduction

Question 3

allowances

Answer 3

percentage of fees that is negotiated with a payer to be deducted

Question 4

net revenues

Answer 4

amount of revenue that remains after deduction of all expenses

Question 5

direct costs

Answer 5

cost such as salaries, services, contracts

Question 6

indirect costs

Answer 6

costs associated with running an organization that may be spread across departments

Question 7

cost per unit of care

Answer 7

ratio of all expenses to total work volume such that the cost to produce one unit of care

Question 8

FTE

Answer 8

number of hours paid to a full time employee during a time period

Question 9

capital equipment

Answer 9

equipment with a cost and life span over an amount set by the organization