Study guide Flashcards
Cost Driver:
basis on which the cost pool will be allocated. They should be fair and should promote organizational cost reduction
Allocation Rate
: numerical value used to make the allocation rate. Dollars in cost pool/total volume of cost driver
Direct Cost
costs unique and exclusive to unit
Indirect Cost
costs or overhead costs associated with shared resources used by the entire organization
Prospective reimbursement plans
payment methods that have a fixed payment determined beforehand that is, in theory, unrelated to either costs or charges. (DRG, Per-diem, & global pricing)
Retrospective reimbursement plans
is where reimbursement came after care was delivered
Capitation
based on a payment per person, rather than a payment per service provided. Capitation is not tied to utilization but to number lives covered
Medicare Prospective Payment Plan (PPS) and DRG’s
method of reimbursement in which Medicare payment is made based on a predetermined, fixed amount. Payment amount for a service is derived based on the classification system of that service
Cash Accounting
recognizes an event when a cash transaction takes place. Mimics tax statements
Accrual Accounting
recognizes an event when an obligation is created. Provides a better picture of the true economic status of a business, and is required by GAAP
FASB
Financial Accounting Standards Board; designated as the organization for establishing standards of financial accounting that govern the preparation of financial reports by nongovernmental entities
GAAP
Generally Accepted Accounting Principles; created by FASB only applies to financial accounting statements
Advantages of partnerships, proprietorships and corporations
Partnership/Proprietorship; ease of formation, subject to new regulations, no corporate income taxes
Corporation; Unlimited Life, transfer of ownership, limited liability, ease of raising capital
Disadvantages
Partnership/Proprietorship; limited life, difficult to transfer ownership, unlimited liability, difficult to raise capital
Corporation: cost of formation and reporting, double or triple taxation for investor owned companies
Why do high income persons like to invest in tax free bonds?
They are not taxable to their income
Bonds?
A form of long-term investment.
Equity financing
takes the form of money obtained from investors in exchange for an ownership share in the business
Debt financing
form of loans that must be repaid over time, usually with interest, the main sources of are banks and government agencies
Balance Sheet
Snapshot of the organization’s financial picture at one point in time
Statement of Cash Flow
Presents the activity of the business for the previous time period
Income Statement
Show the company’s use and acquisition of funds for a given period of time; representative of a company’s financial success or failure
Opportunity Cost
return of alternative investment of funds;
Municipal bonds
issued by state and are not taxable
Corporate bonds
have a shorter life, considered high risk high return investment
Callable bond
a bond that can be redeemed by the issuer prior to its maturity. Usually a premium is paid to the bond owner when the bond is called. (Redeemable Bond)
Preferred stock holder
they receive dividends first and in regular intervals. If a company liquidates, stock holders are required to receive funds
Structure
gauge the care attributes of the healthcare setting, including material resources (e.g., electronic health records), human resources (e.g., staff expertise), and organizational structure (e.g., hospitals or clinics).
Process
measures evaluate the method by which healthcare is provided. The measures reflect the procedures, tests, surgeries, and other actions provided for the patient during the course of treatment
Outcome
Outcome measures track the desired states resulting from care processes and demonstrate the effect structure and process measure types have on the patient. They measure the result of the entire care process.
Effective performance improvement
requires effective leadership
Performance Assessment techniques
Benchmarking, Comparisons, Patient falls by percentage, ratio per 1000 days, per month
Performance improvement methods
Plan Do Check Act (PDCA), Rapid Cycle Improvement (RCI), Six Sigma & Lean
Performance measurement challenges
Measurement error due to unreliable instrument, test, or performance task.
Errors that occur during the collection and reporting process
Lack of standard data collection procedures
Basic differences in definitions
Incomplete therefore not reliable sources of measurement data
Organizational Behavior
the study of individual and group dynamics within an organizational setting
Applied behavioral science that emerges from the disciplines of psychology, sociology, anthropology, political science, and economics
OB attempts to explain and predict the way people behave within organizational settings
Transformational Leadership
directed toward the influence and management of institutional change and innovation through revitalization and vision
One-way Transformational Leaders
influence their subordinates by being charismatic
Charismatic Leaders
characterized by their ability to initiate with vision
Transactional Leadership
leadership is directed toward task accomplishment and the maintenance of good relations between the leader and subordinates through consideration of performance and reward. Guides followers in the direction of established by clarifying roles and task requirements
Diversity
the full range of similarities and differences in group affiliation
Four Layers of Diversity
Personality: individual likes and dislikes, values and beliefs
Internal Dimensions: aspects of diversity over which we have no control, the first things we see in other people
External: aspects of our lives which we have some control over, which might change over time, and which usually form the basis for decisions on careers and work styles
Organizational: aspects of culture found in a work setting, issues of preferential treatment and development are impacted here
Cultural Competency
A set congruent behaviors, practices, attitudes and policies that come together in a system, agency that enables effective work in cross-cultural situations. Competence implies having the capacity to function effectively as an individual and an organization with in the context of the cultural beliefs, behaviors and needs presented by consumers and communities
Maslow’s Hierarchy of Needs
The general needs in Maslow’s hierarchy include physiological needs (food and clothing), safety needs (job security), social needs (friendship), self-esteem, and self-actualization
Maslow’s Hierarchy of Needs relates to organizational theory and behavior due to it’s exploration of worker motivation, enabling better managerial practices and higher job satisfaction.
Communication
a sender uses words and symbols to put forth information into a message for the receiver, the individual receiving the message
messages are decoded and interpreted by the receiver
Effective communication depends on messages that are clear and complete
Effective communication requires that the sender translate the message into a form that is understandable
Cognitive Dissonance
any inconsistency that a person perceives between two or more of one’s attitudes or between two or more of one’s attitudes or between two or more of one’s attitudes or one’s behavior and attitudes
Null Hypothesis
refers to a general statement that there is no relationship between two measured phenomena, it is presumed to be true until statistical evidence nullifies it for an alternative
Research Hypothesis
statement created by researchers when they speculate upon the outcome of a research or experiment, proposes a relationship between two variables
Non directional Hypothesis
reflects a difference between groups, but the direction of the difference is not specified
Directional Hypothesis
reflects a difference between groups, and the direction is specified
Type I Error
the probability of rejecting a null hypothesis when it is true, Whenever p-value is less than alpha, always reject the null/accept the research
Type II Error
Failing to reject a null when it is false, whenever the p-value is higher, you reject the research hypothesis and accept the null
Ordinal
level of measurement, student classification, military rank, Consistent with direction, not the magnitude or strength
Ratio
data differences that are meaningful and relate to some true zero point and are on a continuous scale. Height and Weight
Interval
the difference between values have meaning, the data are measured at the interval scale. Temperature
Nominal
classified into a number of discrete categories, gender and political party
Categorical
variables yield categorical responses/qualitative
Discrete
arises from a counting process
Variance
measurement of the spread between numbers in a data set. Measures how far each number in the set is from the mean
Standard Deviation
a measure of the dispersion of a set of data from its mean. The more spread out the higher deviation
Range
the difference between the low and high prices for a security or index over a specific time period
Normal distribution
68% of values 1 STD, 95.5% of values 2 STD, and 99.7 values 3 STD
Skewness
Right (+) Left (-)
