HS 6200 Class Notes
1.13.06
Prepared by J.Ho
ATTENDANCE / EMAILAaron / gth764a
Alycia / gte896m
Bo / gtg874i
Cory / gte992n
Jessica / gth686m
Kuan / gtg059p
Lorna / gth677a
Marshall / gth670f
McLean / gth801c
Vladi / gtg187a
Zubair / gtg508i
CLASS / NOTES / READING
1 / Jessica / McLean
2 / Aaron / Marshall
3 / Alycia / Zubair
4 / Bo / Bo
5 / Kuan / Jessica
6 / Cory / Lorna
7 / Marshall / Aaron
8 / McLean / Vladi
9 / Zubair / Alycia
10 / Vladi / Kuan
11 / Lorna / Cory
Other Announcements
· Reminder: No class 2.10
· ***April 21-22: Clear out your calendars for Friday starting at 7:30 am. Saturday 8-12 presentations
· Topics by next week (paired with expert)
· Paper to be completed within first month or so
Finance as a System
Product
↓ ↑
Revenue ┬ Expenses
↓
Profit
Healthcare Finance
· Complex (~30% of government expenditures)
· Emotional (cost benefit of certain procedures to society)
· Fragmented
· High cost
What is our product?
§ Sickness cure (70%)
§ Drugs (7.2%)
§ Rehabilitation (<10%)
§ Nursing Care (< 1.0 %)
§ Preventive Care (<1.0%)
§ Comfort/Cosmetic (<1.0%)
Other Expenses
Personnel
Facilities
Equipment
IT
Drug
Research
Training
Risk Mgt/Legal
Profit
Types of hospitals:
Tax exempt/Charitable/Community
Taxable/Investor Owned
Government
1. Military
2. State
3. Federal NIH
Focus is Hospitals
Biggest expense
Consolidated
Revenue cycle, third party payer
Labor is 50% of costs (40-45% is ideal)
Glossary Of Terms
Medicare: publicly funded health insurance scheme for the elderly and disabled that is managed by the federal government.
· Part A: covers hospital care
· Part B: covers doctors
· Part C: covers nursing home
· Part D: drugs
Medicaid: program managed by the states and funded jointly by the states and federal government to provide health insurance for individuals and families with low incomes.
Third Party Payer: A public or private organization that pays for, or underwrites coverage for, health-care expenses for an individual or group.
501 C3: tax status for “charitable in nature”.
Group Purchasing: an entity that leverages the purchasing power of a group of businesses to obtain discounts from vendors based on the collective buying power of the group. Premier is the largest.
Net Patient Revenue: includes contractual adjustments.
Diversion: ER at capacity and diverts ambulances to other hopistals. Suggestion not mandatory
Pay for Performance: Using indicators such as mortality for reimbursement.
High Deductible Plans: insurance plan with high initial portion of covered expenses that must be paid by insured.
Outsourcing: delegation of non-core operations from internal production within a business to an external entity that specializes in that operation
Financial Accounting: preparation of financial statements for external decision makers
Managerial Accounting: use of information to managers within organizations, to assist management making decisions and managerial control functions
CC: complication (ex. Post surgery infection) and comorbidity (Coexistence with another disease or condition)
Catholic Health: National leadership organization of more than 1200 Catholic health care sponsors, systems, facilities, and related organizations and services.
University Health Consortium: Designed to pool resources, create economies of scale, improve clinical and operating efficiencies, and influence the direction and delivery of health care.
Kasier Permanente: Not for profit organization that focuses on preventive.