University of Phoenix Material Week Four Health Care Financial Terms Worksheet Understanding health care financial terms is a prerequisite for both academic and professional success. This assignment is intended to ensure you understand some of the basic terms used in this course. Complete the worksheet below according to the following guidelines: In the space provided, write each term’s definition as used in health care management. You must define the term in your own words.
In the space provided after each term’s definition, summarize a health care management scenario that illustrates the importance of the skill, concept, procedure, or tool to which the term refers. . In the scenario, you may wish to consider the following: o Why is the skill, concept, procedure, or tool necessary for accurate record keeping, operational efficiency, excellent patient services, employee management, regulatory compliance, reducing costs, forecasting, and so forth? o What successes are enabled by an adequate understanding or appropriate application of the skill, concept, procedure, or tool? What risks or failures are associated with an inadequate understanding or inappropriate application of the skill, concept, procedure, or tool? Save the completed worksheet as a Microsoft® Word document with your name in the file name. Submit the file to your instructor. Worksheet Submitted By: [Jesse Merris] |Term |Definition |Scenario | |Forecast |Forecast is a tool or method by using old and |Forecast is very important to all organizations.
Management need | | |present data to make an assumption or projection |to use forecast to assess the performance of the segment or cost | | |of the trend, future revenue, expenses and assets |center so to evaluate the strategy and cope with future | | |acquisition or disposition and etc.. |uncertainty. | |Full-time equivalents |FTE is a unit to measure workload and makes it |FTE is usually used to measure workers’ involvement for a project| | |comparable. FTE 1. 0 means full time and 0. 5 means |or a period of time.
For example, It is essential for management | | |half time OF worker. FTE is equivalent to one |to use FTE to evaluate the staffing and workforce they need, i. e. | | |employee works full time. |how many full time nurse and contractors needs for winter versus | | | |summer season. | |Noncontrollable |A cost cannot be changed or controlled by |It is import to understand the noncontrollable expenses for | |expenses |individual, department or business. health management because all noncontrollable expenses are fixed | | | |expenses and cannot be changed or impacted for a short period of | | | |time by management, such as, tax, rent, or insurance. Be aware of| | | |this type of expense helps management to do forecast and risk | | | |assessment. |Nonproductive time |Nonproductive time is the hours paid to employees |Nonproductive time can be used by health care managers to verify | | |not work in the hospital for direct patient care. |the quality of care. For example, by comparing nonproductive and | | | |productive time to expectation; if productive hours are spent | | | |more than estimate, then we need to consider the quality of care. | | |For that being said, classifying nonproductive and productive | | | |hours are critical. Also, the it helps to staffing management. | |Staffing |Staffing is defined as fulfill roles of |Managers to understand the staffing is important because staffing| | |organization via recruitment and placement. a department appropriately affects heavily both quality patient | | | |care and financial indicators. By using productive time, | | | |nonproductive time variance analysis, calculating FTE can assist | | | |staffing management process financial forecast. |