Health Care Finanical Terms
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Term | Definition | Scenario | Balance sheet | A balance sheet identifies what an organization is worth by keeping record of what an organization owns and owes. It balances the organizations expenses. | An organization has a balance sheet that shows all that the organizations owns. From what the organization owns the minus all their expenses in order to balance what they have left for profit or what they have to invest/ spend. Without balancing they could be negative and be left without any profit or money for further investment. | Statement of revenue and expense | A statement of revenue and expense identifies if an organizations has had a profit or a loss of revenue over a certain period of time. The formula is Operating Revenue – Operating Expenses = Operating Income. | A statement of revenue and expense is needed in any organization to identify if an organization is profiting or resulting in a loss of a long period of time. This can help an organization compare previous statements to help identify areas that may need to improve to increase the revenue. | Revenue cycle | Revenue Cycle is the monitoring of the time from services rendered to the time the payment is received. | A hospital must monitor a patient’s revenue cycle because this will help ensure that all payments were receive from the patient. If this is not being monitored then this would lead to many services that were not paid for. | Payer mix | The different types of payers that are proportionated. | In a hospital organization this can be the mixture of the different types of insurance companies the hospital works with. This helps the hospital to easily identify the payer mix by identifying the percentages that come from the various different groups of insurances. | Revenue | Revenue is the amount of money received for a particular service. | In a hospital organization the
Worksheet
Submitted By:
[Type your name here.]
Term | Definition | Scenario | Balance sheet | A balance sheet identifies what an organization is worth by keeping record of what an organization owns and owes. It balances the organizations expenses. | An organization has a balance sheet that shows all that the organizations owns. From what the organization owns the minus all their expenses in order to balance what they have left for profit or what they have to invest/ spend. Without balancing they could be negative and be left without any profit or money for further investment. | Statement of revenue and expense | A statement of revenue and expense identifies if an organizations has had a profit or a loss of revenue over a certain period of time. The formula is Operating Revenue – Operating Expenses = Operating Income. | A statement of revenue and expense is needed in any organization to identify if an organization is profiting or resulting in a loss of a long period of time. This can help an organization compare previous statements to help identify areas that may need to improve to increase the revenue. | Revenue cycle | Revenue Cycle is the monitoring of the time from services rendered to the time the payment is received. | A hospital must monitor a patient’s revenue cycle because this will help ensure that all payments were receive from the patient. If this is not being monitored then this would lead to many services that were not paid for. | Payer mix | The different types of payers that are proportionated. | In a hospital organization this can be the mixture of the different types of insurance companies the hospital works with. This helps the hospital to easily identify the payer mix by identifying the percentages that come from the various different groups of insurances. | Revenue | Revenue is the amount of money received for a particular service. | In a hospital organization the