Chapter 1 Healthcare Finance Intro
Question and answers 100% correct
2025/2026
What are some of the industries in the healthcare sector? - correct answer ✔Health services (providers
of them such as medical practices, hospitals, clinics etc.), health insurance, medical equipment and
supplies
What is meant by the term "healthcare finance" as used in the book? - correct answer ✔Healthcare
finance is the more specific title for accounting and financial management principles and practices used
within health service organizations. This is to ensure the financial well being of the enterprise
What are the two broad areas of healthcare finance? - correct answer ✔Accounting and financial
management
Why is it necessary to have a book on healthcare finance opposed to a generic finance book? - correct
answer ✔Because the healthcare finance field is unique. The provision of healthcare services is
dominated by non-profit corporations both private and govt. owned. Also, many payments to healthcare
providers are made by 3rd party payers.
What is the difference between a business and a pure charity? - correct answer ✔A business maintains
financial viability by selling goods or services whereas a pure charity relies solely on contributions which
(depending on the amount) determines the budget for the year.
Briefly discuss the role of finance in the healthcare services industry.
Has the role increased or decreased? - correct answer ✔The need to plan for, acquire and use
resources to maximize the efficiency and value of the enterprise.
Question and answers 100% correct
2025/2026
What are some of the industries in the healthcare sector? - correct answer ✔Health services (providers
of them such as medical practices, hospitals, clinics etc.), health insurance, medical equipment and
supplies
What is meant by the term "healthcare finance" as used in the book? - correct answer ✔Healthcare
finance is the more specific title for accounting and financial management principles and practices used
within health service organizations. This is to ensure the financial well being of the enterprise
What are the two broad areas of healthcare finance? - correct answer ✔Accounting and financial
management
Why is it necessary to have a book on healthcare finance opposed to a generic finance book? - correct
answer ✔Because the healthcare finance field is unique. The provision of healthcare services is
dominated by non-profit corporations both private and govt. owned. Also, many payments to healthcare
providers are made by 3rd party payers.
What is the difference between a business and a pure charity? - correct answer ✔A business maintains
financial viability by selling goods or services whereas a pure charity relies solely on contributions which
(depending on the amount) determines the budget for the year.
Briefly discuss the role of finance in the healthcare services industry.
Has the role increased or decreased? - correct answer ✔The need to plan for, acquire and use
resources to maximize the efficiency and value of the enterprise.
