Cash Accounting
When revenue is recognized
What is upon cash receipt?
When revenue is recognized
When earned - when service is performed
Key drivers of revenue
What is service mix, utilization, and collections?
EBITDA stands for this
What is Earnings Before Interest, Taxes, Depreciation, and Amortization
Name a fixed cost
What is rent, salaries, insurance?
When expenses recognized
What is when cash is paid?
When expenses are recognized
What is upon being incurred?
What is staff salaries?
Example of Direct Unit Expense
What is provider comp & benefits, practice & occupancy expenses, G&A, and D&A?
Name a variable cost
What is supplies and hourly wages?
Women's Care Financial report that relies on modified cash
What is the PCR?
GAAP's position on accrual accounting
Generally accepted
Example of cost consciousness in practice
What is managing G&A and practice expenses?
Define net income
What is sales minus salaries, selling, general and administrative expenses, operating expenses, depreciation, interest, taxes, and other expense?
How to improve variable costs
GAAP's position on cash accounting
What is not acceptable?
Purpose of accrual accounting
What is to match results for the period in which the event occurred?
Ways to improve collections
Collect co-pay, deductible, and other payments in office before service. Correct coding.
Name 2 forms of margin
What is operating margin and direct margin?
Which is easier to change: Fixed or Variable Costs
Purpose of cash accounting
What is easy to understand, like a checkbook?
Record a purchase at this time
Upon receipt of goods or services, not at invoice
Retention of staff is financially important for this reason
What is better productivity? (minimize revenue loss; cost improvement)
Top way to drive profitability
What is improve revenue?
Define operating leverage
What is growing revenue faster than expenses?