True or falsenbspthe role of finance in healthcare

Question

True or False:

1. The role of finance in healthcare organizations has increased in importance over time because the finance function must support a multitude of activities such as cost containment, payer negotiations, and joint venture activities.
2. The set of rules and regulations that govern the content and format of financial statements is called Government Acceptable Procedures (GAP)
3. There are several types of managed care organizations (MCOs). Regardless of type, all MC0s have the incentive to reduce utilization.
4. To be most effective, budgets must be thought of as financial staff tools.
5. To minimize the risk associated with debt financing, permanent assets (land, buildings, and equipment) should be financed with long-term debt while temporary assets (such as a seasonal buildup in inventories) should be financed with short-term debt.