Healthcare Finance Chapter 1 and 2
a. What are some of the industries in the healthcare sector?
Some of the industries in the healthcare sector are health insurance, pharmaceuticals and biotechnology, medical equipment and supplies and health services. Others include education institutions, government and private research agencies.
b. What is meant by the term healthcare finance as used in this book?
Healthcare finance is a term used in this book to describe accounting and financial management principles and practices used to ensure the financial well-being of health care organizations.
c. What are the two broad areas of healthcare finance?
The two broad areas of healthcare finance are accounting and financial …show more content…
1.5.What role does regulation play in the health services industry? Regulation is essential to health services. To protect public welfare each state requires licensure, this requires a minimum standard to be met. In 1974 the US congress enacted the legislation-Certificate of need to control health care costs.
1.6 What is the structure of the finance function within heath services organizations?
Chief Financial Officer-head of finance department, reports to Chief Executive Officer, and is responsible for all finance activities that occur within the organization. The CFO also recruits 2 managers 1) comptroller 2) treasurer.
Comptroller- is responsible for accounting, budgeting, preparing financial statements, payables management, and patient accounts management.
Treasurer- is responsible for general financial oversight, management of funds and debt management. The treasurer can in turn hire managers for cash managing who report to the treasurer.
Many of the financial responsibilities re combined in small businesses and assigned to a few individuals.
1.7 What is the primary legal issue facing providers today? The primary legal issue facing providers today is Professional liability. Due to extreme malpractice suits, malpractice premiums have doubled in