___ was in a sense the original reimbursement method, in which health care providers were paid directly for every service performed….

Question Answered step-by-step ___ was in a sense the original reimbursement method, in which healthcare providers were paid directly for every service performed. __________________ is __________________today, representing only a __________________percentage of an average hospital’s total revenue. From the payer or reimbursement prospective, there are problems with FFS. For example, hospitals see them as incentives to perform more services. From strictly an __________________, it may be said that the greater the utilization or number of procedures or resources utilized, the greater the potential reimbursement. Most __________________providers and payers are not in favor of this approach, as there is not an alignment of __________________ around incentives.Today, the most popular payment system employed is a classification system referred to as __________________. __________________categorize all patients through principal and secondary diagnosis, procedures provided, age, sex, and a number of other factors. __________________and payers use the system because it is very comprehensive regarding classification. Medicare also requires the use of DRGs. __________________ are set based on the patient’s illness and length of time required to treat the illness in the DRG system. __________________ tend to negotiate the rates and establish discounted rates based on market coverage, type of service, and volume of activity. Overall, most health care organizations use a standard fixed reimbursement rate for each type of service performed.The __________________ of a health care organization is garnered by providing __________________, the sale of assets for more than their book value (i.e., selling an asset for a gain), and other revenues such as contributions. In the case of a for-profit entity this line item would just be referred to as__________________ The revenue categories are as follows:• Net Patient Service Revenueencompasses revenues earned from patient care less the amount of items such as __________________discounts or exclusions.• __________________is revenues earned from sources such as capitated contracts.•​Other Revenues are derived from sources such as support services or__________________ __________________is made up of three major sections: the heading, the body, and the notes. The heading contains the name of the organization, the name of the statement, and two dates (indicating the time frame). The body con- tains three sections: __________________ __________________ __________________ (for a not-for-profit entity). __________________organizations must further categorize net assets into three subcategories defined by restriction level: __________________ Restricted .Net assets that are not restricted by donors are considered unrestricted net assets. If the assets are restricted, then the level of restriction must be noted. An example of __________________on net assets may be the donation of land by a religious organization with the provision that the health care organization cannot sell the land for three years. In contrast, a __________________would be a person setting up an endowment that stipulates that only the interest from the endowment can be spent while the principal must remain intact.The term __________________refers to the relationship between revenues and costs. Specifically, break-even is the level of sales at which revenue and cost equal each other. After developing the relationship between profit and volume of patient consultations, the __________________ can answer this question, using the profit equation and some simple algebra.Health care organizations interact in ____________________________________environment. To get an understanding of how operations and supply chain management can benefit the organization, it is important to discuss financial statements, financial ratios, break-even and crossover analysis, and specifically how revenues and costs impact these documents. For many health care professionals, accounting or finance courses were not requirements for their field of study.__________________for a good or service is used primarily for three purposes: __________________, comparative analyses, and pricing decisions. Health care managers use __________________for one or all of these purposes at different times and under varying decision-making scenarios.__________________leads us to the fundamental issue that managerial accounting addresses. The use of resources, for what and how much, is what managerial accounting investigates. The recourses investigated include ______________________________________________________. Cost drivers link product and service activities directly to costs. Many costs in a clinic are directly linked to the number of patients seen. Other costs result from the number or complexity of the service provided. In general, there are __________________ cost drivers in most health care organizations. ______________________________________________________is a common question in any organization but the main question for managerial accounting. __________________for a good or service is used primarily for three purposes: profitability assessments, comparative analyses, and pricing decisions. Cost information leads us to the fundamental issue that managerial accounting addresses.The use of resources, for what and how much, is what managerial accounting investigates. The recourses investigated include land, labor, and capital. __________________is involved in the development of a managerial accounting sys- tem. Cost drivers must be identified and applied to the various procedures a health care organization provides. Allocation of costs will be determined in part by the choice of the support centers and drivers themselves. __________________ is crucial in costing. However, when using traditional methods of costing, fixed/variable and direct cost/indirect cost distinctions are not evident in the process. In addition, traditional costing makes it almost impossible to analyze the effects of activity changes such as labor rates or hours of lab analysis (refer to earlier discussion on cost drivers). In using ______________________________________________________, overhead is hidden in product costs using general allocations.ABC makes a concerted effort to tie areas usually thought of as general overhead (e.g., consumable supplies, testing time, etc.) to their own activity measures (i.e., traceable costs). ABC’s main tenet is to reveal all activities ____________________________________to cost, allowing managers to eliminate activities that do not add value. This notion goes hand in hand with continuous improvement, and thus ABC is often heard in connection with six sigma, lean, reengineering efforts, and improving/optimizing the supply chain.____________________________________is primarily used for three purposes: profitability assessments, comparative analysis, and pricing decisions. Managerial accounting coupled with cost information addresses these three areas. ______________________________________________________uses managerial accounting information to identify relationships between activities and the ______________________________________________________needed to complete them. Costs are then assigned to the resources consumed by the activity. One study identified approximately ________________________________________________________________________drivers that hospitals should consider, including account management, corporate support, delivery, ________________________________________________________________________________________order cost, procurement, and staging cost.Typically, when introducing an activity-based system into a hospital, the accounting team meets with materials management/procurement to develop a pricing schedule based on the hospital’s activities. It can be said that many times materials management uses the old cost-plus theory. In turn, there is only so much saving that can ever be realized in that system. Therefore, the discussion focuses on ways to become more efficient and places where savings can be identified. ________________________________________________________________________________________ an area such as the operating room makes up a large share of a health care provider’s supply budget. Items such as unnecessary worker movements and behavior are identified and slow-moving inventory items are____________________________________________. Health Science Science Nursing Share QuestionEmailCopy link Comments (0)