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Homework Questions Week 1

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1.1 a. what are some of the industries in the healthcare sector? * health services, insurance, equipment, supplies, drugs, and technology related to healthcare b. what is meant by the term health care finance as used in this book? healthcare finance is about accounting and financial management in healthcare. it provides organizations and managers with information as to help them make better financial decisions. c. what are the two broad areas of healthcare finance? * Accounting and financial management d. why is it necessary to have a book on healthcare finance as opposed to a generic finance book? - healthcare business in different than general business. healthcare services are mostly from not for profit corporations, which work with the normal investor owned corporations. because of insurance it also has third-party payers. 2. what is the difference between a business and pure charity? -businesses try to make profit, invest in its business. Charity work is non profit, and don’t make their revenue by selling their services. 3. a. briefly discuss the role of finance in the health services industry. -Finance is used to maximize efficiency and value. Also to implement cost controlling strategies. b. has this role increased or decreased in importance in recent years? increased. before healthcare used to make high profits and revenue, now its not so easy to be successful. finance is important and negligence in this department can lead to bankruptcy and closure. 4.a. briefly describe the following health services settings * hospitals * provide diagnostics, primary care, and emergency care * ambulatory care * outpatient care, used to care for emergencies outside hospital * home healthcare * alternate to nursing homes, used for extended periods of time * longterm

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