"As used in this book, the word healthcare finance refers to the accounting and financial management principles and practices employed inside healthcare organizations to assure the financial well-being of the enterprise." (textbook quotation)
Accounting and financial management are two primary aspects of healthcare finance. Accounting refers to an organization's business transactional records. Financial management is the application of many financial ideas and concepts to make better financial decisions. Briefly describe the following healthcare settings: A hospital is a health care institution that provides treatment for patient. It has specialized equipment, medical and nursing staff.
Ambulatory care
This is an outpatient-based medical care that includes diagnosis, observation, treatment, consultation and other services.
Home health care
This is a wide range of patient care services that is offered at home. It include physiotherapy, care for injuries among other medical needs
Long-term care
This is a multiple of medical and non-medical services offered to help patients with chronic diseases or disability that are not able to take care of their condition for a long period.
Integrated delivery systems
This is a group of health care organization networked under one parent company. IDS constitute network of hospitals and physicians.
What benefits are attributed to integrated delivery systems?
-Integrated delivery system enhances quality of healthcare while lowering costs.
- The model promotes sharing of information hence prevent moral hazard among doctors.
- It promotes co-ordination of activities hence facilitate efficient provision and access to quality health care.
1.4 What role does regulation play in the healthcare industry?
Regulation of healthcare industry is important in controlling healthcare insurance premium. Besides, nurses' curriculum review and quality policies require regulation. Emerging legal and ethical practices in healthcare sector require regulations.
1.5 What is the structure of the finance function within healthcare organizations?
The structure of finance function flows from chief financial officer to the accounts clerks. In the healthcare organizations 'billing department is a system integrated in such a way that all transactions are coordinated and generated reports used to make decisions.
1.6 What is the primary legal issue facing provider today?
The primary legal issue facing healthcare providers today is the breach of confidentiality and negligence
References
Gapenski, L. C. (2012). Fundamentals of healthcare finance, 2nd ed. Chicago, IL: Health Administration Press. ISBN: 978-1567934755
Shiver, J. M., & Cantiello, J. (2016). Managing integrated health systems.
