...HSMG 699 Assigniment 1 (Submit via SAKAI by Friday, Feb. 5 midnight) Right on homework Corrected on homework Multiple Choice Questions: 1. Which of the following statements about finance, accounting, and financial management is most correct? a. Accounting is of no value in decision making. b. Accounting provides the theory and concepts necessary to help managers make better decisions. c. Financial management involves the measurement, in financial terms, of operational events that affect the resources and financing of an organization. d. The primary role of finance is to plan for, acquire, and use resources to maximize the efficiency and value of the enterprise. Pp slide 22 (Gapenski 2012) e. Financial management is of no value in decision making. 2. Which of the following statements about the role of finance in healthcare organizations is incorrect? a. Over time, the finance function has become increasingly focused on strategic issues, such as joint venture decisions. b. Today, the most critical finance function is cost identification. Should say cost containment pg. 8-9 c. The finance function often supports cost containment efforts and third-party payer contract negotiations. d. The primary activities of the finance function can be summarized by the four Cs: costs, cash, capital, and control. e. In times of high profitability and abundant financial resources, the finance function tends to decline in importance. 3. Which of the following is...
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...a sample of the instructor resources for Louis C. Gapenski, PhD, Fundamentals of Healthcare Finance, Second Edition. The complete instructor resources include Test Bank PowerPoint slides Sample course syllabus Solutions to the end-of chapter questions and problems Solutions to the online cases This sample includes the following resources for Chapter 2: Answers to end-of-chapter discussion questions PowerPoint slides If you adopt this text, you will be given access to the complete materials. To obtain access, email your request to hapbooks@ache.org and include the following information in your message: Book title Your name and institution name Title of the course for which the book was adopted and season course is taught Course level (graduate, undergraduate, or continuing education) and expected enrollment The use of the text (primary, supplemental, or recommended reading) A contact name and phone number/e-mail address we can use to verify your employment as an instructor You will receive an e-mail containing access information after we have verified your instructor status. Thank you for your interest in this text and the accompanying instructor resources. Copyright and distribution of this PDF is prohibited without written permission. For permission, please contact Copyright Clearance Center at www.copyright.com Healthcare Business Basics Chapter 2 8/1/12 ANSWERS TO END-OF-CHAPTER QUESTIONS 2.1 a. A business is an entity that obtains financing from the marketplace...
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...Chapter One 1. A. What are some of the industries in the healthcare sector? The major industries in the healthcare sector includes health services, health insurance, medical equipment and supplies, pharmaceuticals and biotechnology, and other (includes a diverse collection of organization ranging from consulting firms to educational institutions to government and private research agencies. B. What is meant by the term healthcare finance as used in the book? Finance, as the term is used within the health services industry and as it is used in the book, consists of both the accounting and financial management functions. C. What are the two broad areas of Healthcare Finance? Accounting as its name implies, concerns the recording, in financial terms, of economic events that reflect the operations, resources, and financing of an organization. Financial management or corporate finance, provides the theory, concepts, and tools necessary to help managers make better financial decisions. Certain aspects of accounting involve decision making, and much of the application of financial management theory and concepts requires accounting data. D. Why is it necessary to have a book on healthcare finance as opposed a generic finance book? The reason is that while all industries have certain individual characteristics, the health services industry it truly unique. 2. What is the difference between a business and a pure charity? A business such as a hospital or medical...
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...Chp 1 Questions: (pg 23-4) 1. a. What are some of the industries in the healthcare sector? Healthcare services (ex. hospitals), Health insurance (makes most of the payments to the health service providers), Medical equipment and supplies (maker of medical/diagnostic equipment), Pharmaceuticals and biotechnology (develop/market drugs/therapeutics), and "other" (which includes consulting, educational, government, and research agencies) b. What is meant by the term healthcare finance as used in this book? Healthcare Finance consists of both the accounting (which creates and provides useful operations and financial status information to interested internal and external parties for assessing financial and operation performance) and financial management (provides the theory, concepts, and tools necessary to help managers make better financial decisions) for the healthcare sector of the economy. c. What are the two broad areas of healthcare finance? Accounting and financial management (aka Corporate Finance) d. Why is it necessary to have a book on healthcare finance as opposed to a generic finance book? Healthcare services are dominated by both private and governmental not-for-profit corporations, which differ from investor-owned businesses (learned in a generic finance book) due to the majority of payments being made are from third-party payers (e.g., employers, commercial insurance companies, government programs). 2. What is the difference between...
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...2-1 CHAPTER 2 Healthcare Business Basics Concept of a business Legal forms of business For-profit versus not-for-profit ownership Organizational goals Financial goals Taxes 2-2 Concept of a Business A business is an entity that raises money in the capital markets, invests these funds in assets (land, buildings, equipment, inventories, and so on), uses these assets to create products or services, and sells these products or services to sustain itself. A pure charity is different. Why? 2-3 Legal Forms of Business There are four major categories of business organization (legal forms of business): Proprietorship (sole proprietorship) Partnership Corporation Hybrid forms How much does the organizational form influence the practice of healthcare finance? 2-4 Proprietorships and Partnerships Advantages: Ease of formation Subject to few regulations No corporate income taxes Disadvantages: Limited life Difficult to transfer ownership Unlimited liability Difficult to raise capital 2-5 Corporation Advantages: Unlimited life Easy transfer of ownership Limited liability Ease of raising capital Disadvantages: Cost of formation and reporting Double (or triple) taxation for investor-owned corporations 2-6 Hybrid Forms of Organization Limited partnership (LP) General partners have control Limited partners are liable only for their initial contribution Not commonly used by healthcare providers Limited...
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... | | | | |Do you personally agree with the event’s significance, based on your beliefs and values? How | | | | |so? | | | | |Organization/Development |Points |Points |Additional | |20 Percent |Available |Earned |Comments: | | |2...
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...Chapter 1: Strategic Management Strategy * An integrated and coordinated set of commitments and actions designed to exploit core competencies and gain competitive advantages I/O Model Resource * Inputs into a firm’s production process, such as capital equipment, skills of individual employees, patents, finances, and talented managers Capability * The capacity for a set of resources to perform a task or an activity in an integrated manner Core competency * Capabilities that serve as a source of competitive advantage for a firm over its rivals Vision * Picture of what a firm wants to be and, in board terms, what it wants to ultimately achieve Mission * Specifies the business in which a firm intends to compete and the customers it intends to serve Resource-Base Model Chapter 2: External Environment General environment * Composed of dimensions in the broader society that influence a market and a firm within it. It is grouped into 7 environmental segment: * Demographic * Population size * Age structure * Geographic distribution * Ethic mix * Income distribution * Gender * Economic * Government healthcare spending * People healthcare spending * Political/legal * Healthcare regulation * Obama care * Sociocultural * General attitude toward cancer * Hispanic population attitude toward...
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...MASTER OF BUSINESS ADMINISTRATION (MBA) (Revised) 1. The Program: The importance of „management‟ as a professional study can today be compared with that of obtaining a normal graduate degree in order to be called educated. It is just short of becoming a compulsion. Businesses and institutions are growing in complexity and size. They are cutting across space and time by embracing technology, globalization and information. Mere operational efficiency is no more sufficient. Managerial capabilities have become necessary for firms to act on a global platform. Although there are a large number of institutions offering MBA programs, many of them just churn out non employable MBAs. A good institute must incorporate what the industry requires with changing times. The SMU way to Management degree or diploma is to mould the learning towards this objective. With this perspective it has introduced several programs which are geared to meet the industry requirement. These areas are Banking, Information System, Retail Operations and Healthcare. It is planning to offer more programs in the field of environment, disaster management, and media. The master of business administration (MBA) is an integrated program designed to provide an advanced program in management for those seeking managerial positions in industry, commerce and services. The core subjects are aimed at developing knowledge and skills in fundamental management disciplines. The program also involves participation in group work with...
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...Principles of Healthcare Reimbursement Anne B. Casto, RHIA, CCS Elizabeth Layman, PhD, RHIA, CCS, FAHIMA Copyright ©2006 by the American Health Information Management Association. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, photocopying, recording, or otherwise, without the prior written permission of the publisher. ISBN 1-58426-070-X AHIMA Product No. AB202006 Ken Zielske, Director of Publications Susan Hull, MPH, RHIA, CCS, CCS-P, Technical Reviewer Marcia Loellbach, MS, Project Editor Elizabeth Lund, Assistant Editor Melissa Ulbricht, Editorial/Production Coordinator All information contained within this book, including Web sites and regulatory information, was current and valid as of the date of publication. However, Web page addresses and the information on them may change or disappear at any time and for any number of reasons. The user is encouraged to perform his or her own general Web searches to locate any site addresses listed here that are no longer valid. AHIMA strives to recognize the value of people from every racial and ethnic background as well as all genders, age groups, and sexual orientations by building its membership and leadership resources to reflect the rich diversity of the American population. AHIMA encourages the celebration and promotion of human diversity through education, mentoring, recognition, leadership, and other programs. American...
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...International Journal of Public and Private Healthcare Management and Economics, 1(2), 17-25, April-June 2011 17 The Politics of Health Finance Reform in Hong Kong Raymond K. H. Chan, City University of Hong Kong, Hong Kong ABSTRACT Since the late 1950s, Hong Kong’s public health services have increased. They are mainly funded by taxes, supplemented by minimal user fees. In the late 1980s, the government recognized the limitations of this financing model and subsequently proposed alternative methods of funding. Their proposals have been rejected by various stakeholders, who represented different, and even conflicting, values and interests. This paper describes the development of health services and the debates that have surrounded health financing since the late 1980s. It shows that the health finance debate in Hong Kong is not a simple issue that can be tackled by rational planning; instead, it is a complex consequence of welfare politics in an increasingly mobilized society. Keywords: Health Finance, Health Policy, Health Services, Hong Kong, Public Health Services INTRODUCTION The earliest public health services in Hong Kong were mainly devoted to combating communicable diseases. As the government was largely unresponsive to demands for further services, the gap in provision was filled by traditional Chinese medical practitioners and hospitals operated by local philanthropic organizations. It was not until the late 1950s that the government expanded its role...
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...Capital Budgeting Process These are the six steps that organizations use when they are issuing bonds. These steps are: 1. The healthcare provider plans and prepares for the issuance process. (Cleverley, Chapter 21) 2. The healthcare provider gets evaluated by a credit rating agency. (Cleverley, Chapter 21) 3. The bond is rated by a bond rating agency. (Cleverley, Chapter 21) 4. The healthcare provider provides a note or lease to the governmental authority, the issuer of the bonds, via a trustee. (Cleverley, Chapter 21) 5. The governmental authority delivers the bonds to one or more investment banking firms. (Cleverley, Chapter 21) 6. The investment banking firms sell the bonds to investors at the public offering price, and the trustee provides the healthcare provider with the net proceeds. (Cleverley, Chapter 21) An alternative to traditional equity and debt financing is leasing. Leasing is undertaken primarily for what purposes? Leasing is undertaken for the primary purpose of protecting the organization from having to buy equipment that depreciates. Another reason is that it creates safe harbors for investment in healthcare entities, certain discounts for products, and for waiver of coinsurance or deductibles, among others. (Cleverley, chapter4) The two major types of leases are operating and financial. With an operating lease, sometimes called service leases, is a lease for a period shorter than the equipment’s economic life, usually cancelable. (Cleverley, pg...
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...-HS100-section-unit7 Project/Assignment.doc •Current issues 1-Healthcare.gov (2010) Brochure: The Health Care Law & You (PDF – English 8.99 MB, Spanish 8.3 MB) This brochure is design to accompany the www.healthcare.gov website. Its sole purpose is to provide readers with a little incentive on what to look forward to when visited the website. So one would wonder why I would then go to the website, and the reason or answer to that would be to get more information. The brochure is mainly used to introduce the company or organization, and to inform or provide you with The Healthcare Law, The Law Makes Healthcare More Affordable, and Law Increases You Access to Affordable Care. It’s like almost having the website in you hand. I think this brochure is helpful because it has information that small business could get insight on regarding getting help. Also show anyone can save money on affordable healthcare. 2-Nicholas Bakalar (2013). New York Times Newspaper. Safer Hospital Rooms. This article geared toward showing how some hospital really tries to help improve the safety of others. Also how the cleaning process take place to make you stay a clean and health one by committing to effectiveness. In the article it states that studies that were develop to understand why this was happen in the first place. This is clearly a helpful and useful article to read to let people know wonder you’re a visitor or patient not all hospitals are clean but some are try to make it...
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...This is a sample of the instructor resources for Cases in Healthcare Finance, Fourth Edition by Louis Gapenski. This sample contains the case questions, case solutions, instructor model, and PowerPoints for Chapter 4. The complete instructor resources consist of 268 pages of instructor’s notes including case questions and case solutions; instructor model spreadsheets; and 623 PowerPoint slides. If you adopt this text you will be given access to complete materials. To obtain access, e-mail your request to hap1@ache.org and include the following information in your message: • Book title • Your name and institution name • Title of the course for which the book was adopted and season course is taught • Course level (graduate, undergraduate, or continuing education) and expected enrollment • The use of the text (primary, supplemental, or recommended reading) • A contact name and phone number/e-mail address we can use to verify your employment as an instructor You will receive an e-mail containing access information after we have verified your instructor status. Thank you for your interest in this text and the accompanying instructor resources. Cases in Healthcare Finance Case Questions © Health Administration Press, 2010. Reproduction without permission is prohibited. CASE 4 QUESTIONS APPLE VALLEY FAMILY PRACTICE Cost Allocation Methods 1. Briefly describe the differences in the four allocation methods discussed in the case. (Hint: Don’t discuss the mathematics...
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...standard financial analysis method that involves the calculation of several proportions to determine a firm’s performance in key areas. The ratios are categorized as profitability ratios, solvency ratios, liquidity ratios, asset management ratios and market value ratios. The purpose of this paper is to conduct a ratio analysis of Advocate Obligated Group Health Care for the year ended December 31, 2014, and come up with a conclusion of the firm’s financial health. 1. Current Ratio The current ratio is a liquidity ratio that evaluates a firm’s ability to meet its short-term obligations. Its formula is as follows: Current ratio = Current assets/ Current liabilities The reason I chose this ratio is that hospitals mostly buy goods on credit, and suppliers evaluate this ratio to determine whether to extend credit to the organization or not. A high ratio implies that the company can meet its maturing short-term debts. The most appropriate current ratio is 2 (Henry & Robinson, 2015). A current ratio of less than 1 implies that a company would struggle to meet its obligations. The current ratios for 2013 and 2014 are calculated as shown below: | 2014 | 2013 | Current assets | 1322268 | 1524917 | Current liabilities | 1439058 | 1380596 | Current Ratio | 0.91 | 1.1 | The 2014 ratio of 0.91 shows that Advocate would struggle to...
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...in ethical values; those for universal health care desire to see the government help others, mainly the lower class, and those who do not, wish that private companies be allowed to continue taking advantage of the status quo for profit. In this paper, I will argue why the Government should put in place The Universal Healthcare Systems.[1] Chapter 1 I think as a US citizen everyone should be entitled to healthcare, especially the ones who don’t have the financial stability to afford it. The lower class should have healthcare because they suffer, which is not ethically right. Without some form of health insurance, purchasing prescription drugs would not be possible. Many Americans, such as those with diabetes cannot survive without certain prescription medications. Now you wonder why I would say something like this well how many people you know who have medical conditions but unable to go to the doctor because they don’t have the finances to pay for a doctor's visit. The lower class is more prone to diseases and illnesses with can cause early departure. A universal healthcare system will benefit the poor citizens. Private insurance companies are a business, with a main focus to make a profit and keep business running. This makes it extremely hard for the poor to afford it. Medicine is a right all citizens should have no matter their social status. It’s unfair for a kid not to receive treatment...
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