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Week Three 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:

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?

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:

Term                                   Definition                                                               Scenario

Capital expenditure budget

Direct cost

Flexible budget

Operating budget

Responsibility center