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HC Financial Management Ch 1-4 Study guide Questions
With Complete Solutions 2025
What are some of the subsectors that make up the healthcare sector? - (answers)-
Health services (providers)
- Health insurance
- Medical equipment and supplies
- Consulting
- Education
- Regulative govt. agencies
- Private agencies
Healthcare finance - (answers)the accounting and financial management principles
and practices used within health services organizations to ensure the financial well-
being of the enterprise.
2 broad areas of healthcare finance - (answers)Accounting and Financial
management
Business - (answers)maintains its financial viability by selling goods and services
pure charity - (answers)maintains financial viability soley from contributions
Role of finance in the health services sector - (answers)To plan for, acquire, and
use resources to maximize efficiency and value of an organization
, 2
Structure of a finance department - (answers)- Chief Financial Officer CFO
- CFO reports to CEO
- Comptroller: responsible for accounting and reporting (reports to CFO)
- Treasurer: responsible for acquisition/management of capital
Current concerns of healthcare managers - (answers)- reimbursement: takes too
long/not enough
- population health: the health of a community
- cost of supplies: supply chains are struggling
3 business forms - (answers)sole proprietorship, partnership, corporation
Propriertorship - (answers)A form of business organization with one owner who
takes all the risks and all the profits.
Partnership advantages and disadvantages - (answers)Advantages:
Easy to start
Ease of management
No business tax
Better able to attract financial capital
Efficient
Attract quality employees
, 3
Disadvantages:
Partners are responsible for each other
Limited life
Conflict
Corporation - (answers)A business owned by stockholders who share in its profits
but are not personally responsible for its debts
large organizations and non profit entities are - (answers)corporations
Investor owned vs. not for profit corporations - (answers)Investor owned:
stockholders own the corporation, have claim on residential earnings, are taxable
non profit: stakeholders who have interest of the organization, no taxes
Accountable Care Organization (ACO) - (answers)An organization of healthcare
providers accountable for the quality, cost, and overall care of Medicare
beneficiaries who are assigned and enrolled in the traditional fee-for-service
program
medical homes - (answers)team-based model of care that is led by a personal
physician who provides continuous and coordinated care throughout a patient's
lifetime with the goal of maximizing health outcomes
What are the 4 characteristics of insurance? - (answers)Pooling of losses
HC Financial Management Ch 1-4 Study guide Questions
With Complete Solutions 2025
What are some of the subsectors that make up the healthcare sector? - (answers)-
Health services (providers)
- Health insurance
- Medical equipment and supplies
- Consulting
- Education
- Regulative govt. agencies
- Private agencies
Healthcare finance - (answers)the accounting and financial management principles
and practices used within health services organizations to ensure the financial well-
being of the enterprise.
2 broad areas of healthcare finance - (answers)Accounting and Financial
management
Business - (answers)maintains its financial viability by selling goods and services
pure charity - (answers)maintains financial viability soley from contributions
Role of finance in the health services sector - (answers)To plan for, acquire, and
use resources to maximize efficiency and value of an organization
, 2
Structure of a finance department - (answers)- Chief Financial Officer CFO
- CFO reports to CEO
- Comptroller: responsible for accounting and reporting (reports to CFO)
- Treasurer: responsible for acquisition/management of capital
Current concerns of healthcare managers - (answers)- reimbursement: takes too
long/not enough
- population health: the health of a community
- cost of supplies: supply chains are struggling
3 business forms - (answers)sole proprietorship, partnership, corporation
Propriertorship - (answers)A form of business organization with one owner who
takes all the risks and all the profits.
Partnership advantages and disadvantages - (answers)Advantages:
Easy to start
Ease of management
No business tax
Better able to attract financial capital
Efficient
Attract quality employees
, 3
Disadvantages:
Partners are responsible for each other
Limited life
Conflict
Corporation - (answers)A business owned by stockholders who share in its profits
but are not personally responsible for its debts
large organizations and non profit entities are - (answers)corporations
Investor owned vs. not for profit corporations - (answers)Investor owned:
stockholders own the corporation, have claim on residential earnings, are taxable
non profit: stakeholders who have interest of the organization, no taxes
Accountable Care Organization (ACO) - (answers)An organization of healthcare
providers accountable for the quality, cost, and overall care of Medicare
beneficiaries who are assigned and enrolled in the traditional fee-for-service
program
medical homes - (answers)team-based model of care that is led by a personal
physician who provides continuous and coordinated care throughout a patient's
lifetime with the goal of maximizing health outcomes
What are the 4 characteristics of insurance? - (answers)Pooling of losses
