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Healthcare Finance Chapters 1 & 2 questions with correct answers
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Healthcare Finance Chapters 1 & 2 questions with correct answers
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Healthcare Finance Chapters 1 & 2Healthcare Finance - correct answer ✔✔Accounting and financial management principles and practices
used within health services organizations to ensure the financial well-being of the enterprise.
What is the difference between accounting and financial management? - correct answer ✔✔Accounting
concerns the recording, in financial terms, of economic events that reflect the operations, resources, and
financing of an organization.
Financial management (corporate finance) provides the theory, concepts, and tools necessary to help
managers make better financial decisions.
Not-for-profit corporations - correct answer ✔✔a corporation that has a charitable purpose, is tax
exempt, and has no owners.
Investor-owned - correct answer ✔✔A for-profit business whose capital is supplied by owners
(stockholders in the case of corporations).
Third-party payer - correct answer ✔✔An entity other than the patient that pays for healthcare services.
Examples include commercial insurance companies and government programs such as Medicare.
A ___________ maintains its financial viability by selling goods or services, while a __________ relies
solely on contributions. - correct answer ✔✔Key Concepts on page 22:
business, pure charity
What is the primary role of finance in health services organizations? - correct answer ✔✔Plan for,
acquire, and use resources to maximize the efficiency and value of the enterprise.
Finance activities generally include the following: - correct answer ✔✔1) planning and budgeting, 2)
financial reporting, 3)capital investment decisions, 4) financing decisions, 5) working capital
management, 6)contract management and 7) financial risk management.
, What are the four Cs? - correct answer ✔✔Cost, cash, capital and control.
The size and structure of the finance department within a health services organization depends on
_________ and its _______________. - correct answer ✔✔Key Concepts on page 22:
the type of provider, size.
What does CFO stand for? What is the CFO responsible for? Who does the CFO report to? - correct
answer ✔✔Chief Financial Officer, responsible for all finance activities within the organization. Reports
to the CEO (Chief Executive Officer).
Reporting to the CFO are the ____, who is responsible for accounting and reporting services, and the
_____, who is responsible for the acquisition and management of capital (funds). - correct answer
✔✔Key Concepts on page 22:
comptroller, treasurer
In small health services organizations, the finance responsibilities are combined and assigned to one
individual, often called the ________________. - correct answer ✔✔Key Concepts on page 22:
business (practice) manager
All business decisions have _______ ________, so all managers - whether in operations, marketing,
personnel, or facilities - must know enough about finance to incorporate its implications into their own
specialized decision process. - correct answer ✔✔Key Concepts on page 22:
financial implications
Healthcare services are provided in numerous settings, including ____, _______, _________, and even at
_____. - correct answer ✔✔Key Concepts on page 22:
hospitals, ambulatory care facilities, long-term care facilities, and home.
_______ _______, also known as _____________ ___________, encompasses services provided to non-
institutionalized patients. These settings include: medical practices, hospital outpatient departments,
ambulatory surgery centers, urgent care centers, diagnostic imaging centers, rehabilitation/sports
medicine centers, and clinical laboratories. - correct answer ✔✔Key Concepts on page 23:
Ambulatory care or outpatient care
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