Assessment #2: Health Care Financial Concepts Paper Requirements
From the list of financial concepts, pick only 1-2 financial concepts to discuss.
Search for a healthcare finance related article on the concepts.
In a 3-5 page paper, describe how you can apply the selected financial concepts from the article to your current health care organization or a health care organization of your choice.
Some examples of financial concepts are:
- Revenues or revenue cycle
- Fixed and variable costs
- GAAP
- Contribution margin
- Breakeven Analysis
- Capitation
- Income statements
- Balance sheets
- Cost value analysis
- Cost allocation methods
- Auditing process
- General knowledge of health care laws and regulations
- Time value of money
- Financial statement analysis
- Cost of capital
- Financial risk
- Insurance and risk
- Ratio analysis
- Analytics
- Budgeting (operational and capital)
- Forecasting
- Lease financing
- Cost control
- Benchmarks
- HIPAA privacy act
- Affordable Care Act (ACA)
- JCAHO
- ICD-10
- Profit vs. non-profit
- Best practices
- Compliance
Expert Solution Preview
Introduction:
Healthcare financial concepts are essential to understand for healthcare professionals because healthcare is a business as well as a service. The list of financial concepts includes various components of financial management that are utilized by health care systems in their functioning. In this assignment, the students are required to discuss 1-2 financial concepts from the given list, find a healthcare finance-related article relating to those concepts and discuss how it applies to a healthcare organization of their choice.
Q: What is the purpose of Healthcare Financial Concepts Paper?
A: The purpose of the Health Care Financial Concepts Paper is to provide college students with an in-depth understanding of financial concepts and their application in healthcare organizations. Through researching and analysis of a healthcare finance-related article, students can learn how to identify and apply financial concepts to healthcare organizations. Furthermore, it stimulates critical thinking and allows the student to evaluate the financial implications for their healthcare organization.
Q: Why is it crucial for healthcare professionals to understand financial concepts in healthcare?
A: Understanding financial concepts is necessary for healthcare professionals because the healthcare system is a business as well as a service. The healthcare industry has unique financial management challenges due to insurance programs and government regulations. Healthcare professionals with financial management knowledge can better understand the financial implications of their decisions and apply financial principles to their practices. For instance, understanding the value of the time of money can help to manage the healthcare facility’s investment and operational expenses effectively.
Q: How does the Finance Concepts Paper prepares the students for their professional careers?
A: The Health Care Finance Concepts Paper prepares students for their professional careers by providing them with up-to-date and relevant information on financial concepts and their application in healthcare. Through exploring healthcare finance-related articles and analyzing financial information, students can develop their analytical and critical thinking skills, which they can apply to contribute to their future healthcare organizations. The paper helps students to appreciate the connection between financial management and the healthcare system, which is crucial to succeed in their professional careers.
