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.
Save the completed worksheet as a Microsoft Word document with your name in the file name to your computer desktop.
Part A: Complete the table below according to the following guidelines:
In the space provided, write each term's definition as used in health care management. You must define the term using your own words.
In the space provided after each term's 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?
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Term
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Definition
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Scenario
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Controlling
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Decision-
making
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Organizing
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Planning
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Original
records
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Revenue cycle
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Payer mix
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Revenue
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Capital expenditure budget
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Direct cost
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Flexible budget
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Operating budget
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Responsibility center
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Forecast
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Full-time equivalents
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Noncontrollable expenses
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Nonproductive time
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Staffing
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Situational analysis
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SWOT analysis
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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.
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Financial Statement
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Purpose of Statement
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Example of Use
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Balance sheet
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Income statement
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Operating budget
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