Understanding health care financial terms and statements is

Question

Health Care Financial Terms and Statements

Understanding health care financial terms and statements is a prerequisite for academic and professional success. This assignment is intended to ensure you understand some of the basic terms and statements used.

Complete parts A and B of this worksheet.

Part A:

 Complete the table below according to the following guidelines:

• In the space provided, write the definition for each term as used in health care management. You must define the term using your own words.
• In the space provided after each definition, summarize a health care management scenario that illustrates the importance of the skill, concept, procedure, or tool that the term refers to in 125 to 150 words. In the scenario, you may wish to consider the following:
  • Why is the skill, concept, procedure, or tool necessary for accurate record-keeping, operational efficiency, excellent patient services, employee management, regulatory compliance, reducing costs, forecasting, etc.?
  • What successes are enabled by an adequate understanding or appropriate application of the skill, concept, procedure, or tool?
  • What risks or failures are associated with an inadequate understanding or inappropriate application of the skill, concept, procedure, or tool?

Term	Definition	Scenario
Controlling
Decision- making
Organizing
Planning
Original records
Revenue cycle
Payer mix
Revenue
Capital expenditure budget
Direct cost
Flexible budget
Operating budget
Responsibility center
Forecast
Full-time equivalents
Noncontrollable expenses
Nonproductive time
Staffing
Situational analysis
SWOT analysis

Part B:

Resources:

Complete the table below.

In 100 to 125 words, identify the purpose of the financial statement listed and provide an example of how the statement is used.

Financial Statement	Purpose of Statement	Example of Use
Balance sheet
Income statement
Operating budget