Finance Terminology
These costs do not increase or decrease with changes in volume
What are fixed costs?
The financial plan for a defined period of time, usually between 1 -3 years.
What is a budget?
The financial statement that includes revenue, costs and operating income
What is a "P & L"?
or
What is an Income Statement?
What is capitation?
The economic situation where one group underpays for healthcare, resulting in another group overpaying for healthcare
What is cost-shifting?
These costs increase or decrease when volume fluctuates
What are variable costs?
The amount of money owed to a company for services already provided.
What is accounts receivable?
The financial statement that is a 'snapshot' of assets, liabilities and equity
What is a balance sheet?
What is a DRG?
or
What is a diagnosis-related group?
The payment model based upon cost and quality.
What is a value-based payment model?
These costs exhibit the characteristics of both a fixed and variable cost.
What are mixed costs
The accounting method which determines the actual costs (fixed and variable) incurred while providing a good or service.
What is cost accounting?
The financial statement that shows where cash came from and where it went.
What is a cash flow statement?
This term describes the process of ensuring all charges are captured appropriately, documented sufficiently and paid correctly.
What is revenue integrity?
The payment model based on services provided to patient.
What is fee-for-service?
The type of assets which are purchased for long-term use such as land, buildings, and equipment
What are fixed assets?
On the balance sheet, a debt the company owes, such as mortgages or loans for equipment & supplies.
What is a liability?
The financial statement containing the operating margin
What is a "P & L"?
or
What is an Income Statement?
This index calculation reflects the diversity, clinical complexity, and resource needs of all the patients in the hospital.
The cost-accounting calculation that describes how much revenue is left over (after deducting variable costs) to cover fixed costs, often calculated on a per unit basis.
What is contribution margin?
The decrease in the value of an asset over time, typically due to wear and tear.
What is depreciation?
The resources (found on the balance sheet) that provide future economic value, such as accounts receivable
What are assets?
The financial statement that shows accounts receivable
What is the balance sheet?
This term refers to the percentage of revenue from private insurance, Medicare, Medicaid and self-paying individuals
What is payer mix?
Revenue - variable costs - fixed costs = ???
What is operating margin?