Finance Terminology
These costs stay mostly the same within a wide range of production or sales volumes.
What are fixed costs?
The financial blueprint or action plan for an organization.
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?
The model of reimbursement in which providers receive a fixed amount of money per patient
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 change with the number of units produced or sold.
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?
This is revenue from investments, interest and donations
What is non-operating revenue?
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 details the reason for changes in cash during the accounting period.
What is a cash flow statement?
This determines an organization's ability to access capital markets
What is a credit rating?
The payment model based on services provided to patient.
What is fee-for-service?
The type of assets that are difficult to convert to cash.
What are fixed assets?
A claim against a company's assets.
What is a liability?
The periodic statement produced to reflect operating performance, including Revenue, Expenses and Income
What is Statement of operations
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?
A noncash charge that effectively reduces the balance sheet value of an asset over it's useful life.
What is depreciation?
The balance-sheet items in which a company invests so that it can conduct business.
What are assets?
Liquidity, Activity, Profitability and Capital Structure are all categories of?
What is Ratios?
This term refers to the percentage of revenue from private insurance, Medicare, Medicaid and self-paying individuals
What is payer mix?
Measures profits earned from the organizations main line of business
What is operating margin?