Some Financial Keywords for Career in Healthcare Management
Each has its own special terminology financial terms, but many are the same in all sectors. Here are some basic words and their definitions concerning the management of health financing.
1. Accounting: This is a question in a management review, which took a while! In this method, when a bill to pay for the balance and you receive the payment, which he represented. Its assets are recognized when he drops his performance is being recorded and when you build the online payment or check. Most physicians practice exclusively in the hands of the cash accounting method, which give doctors a draw against their earnings without additional revenue is distributed quarterly. A good spending all accounts, quarterly (malpractice is often) or annually (usually the distribution of benefits), that money should not prematurely extended the warranty.
2. Accrual Accounting. In the method of accrual, if you receive a bill, it believes, and if you love someone, is both for that period of time, if you paid. Their claims are recognized when the patient’s management and its performance is saved when you receive an invoice. (I’ve never been a practice that has worked in the accounting method used.)
3. Distribution: The process of deciding how the various costs attributable both to the practice of a physician or an adult. For example, some physicians are assigned costs of some employees, partners or overload on the means they use only.
4. Amortized cost. The cost of assets, such as medical devices and equipment that are depreciated (cost) is the time to reflect on their durability.
5. Cost / Benefit: One-way analysis assesses whether there are in a given period, the benefits of new investments or new business opportunities cost. This analysis is a laboratory for a new machine or a new branch.
6. Gross collection: divided by the total inventory costs and provides a recovery rate of crude oil, but this number is rarely useful, since most of the methods of significant adjustments to the types of contracts with insurance companies.
7. NET collections: Collections divided by the total depreciation less the contract and results in a ratio of net income. The number should be descriptive and, if possible, not reduced in the high deductibles, medical bankruptcy, the economy of high unemployment. Collections conditions are less useful when used for the monthly analysis and particularly useful when used to cover expenses and collections for a year or more to evaluate.
8. Revenue cycle: The process of collecting insurance and billing information for patients, accumulate in the time of service, documentation of medical services, translation service in ICD9 and CPT codes, collection of debt and the amount of contract of the debtor.
9. Equipment Rentals: A contract for the purchase or rental of equipment and / or a shopping service for a specified period. The monthly cost includes the purchase price, interest and even if the cost over the lease even more, the practice of a cash investment of all important to avoid both.
10. Capital expenditures: The purchase of equipment, furniture or some kind of software (usually $ 500 or more), which are covered by the depreciation as an expense. A capital budget is paid by all the great efforts of the practice throughout the year contain.
11. Operating costs: Costs incurred in managing a business, such as wages, benefits, pensions, utilities and marketing costs. An operating system is a budget that all costs in the daily operations of the company understand.
12. Budget revenue: A budget of expected income on the basis of medical practice productivity and performance rights and the application of the percentage of the previous year, the average refund of estimated costs.
13. Benchmarks or indicators. Indicators such as cost per RVU (relative value unit), the cost per case in surgery, and days in A / R (accounts receivable), which allows practices to compare their performance with the implementation of successful practices.
14. Return on investment (ROI): A financial ratio measuring the impact of an investment over the cost. You can calculate the ROI of an automated appointment reminder and calculate the cost of the system against a reduction in appointment no-show for several years.
15. The time value of money: The principle that a U.S. dollar received today is worth more than $ U.S. at one point in the future. Even adjusted for inflation, the dollar received today is better because it can immediately be invested to generate additional income. This is important in the collections, as always, a partial payment of a patient today, the more value can be the start of full payment for a patient in two years.
16. Variable costs. Costs / expenditures related to services for patients. Examples include the costs of medical supplies, equipment, patient education and business services fees for credit cards.
17. Fixed costs: Costs / expenditures on a regular basis, regardless of the number of patients. Examples include rent, electricity and insurance.
If you want to Learn Accountable care organizations and make bright future in healthcare management field. Hfma.org teaches you Healthcare quality information and provides healthcare management knowledge.
Processing your request, Please wait....
