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HSM543 Study Guide
The maximum time you can spend on this assignment is
2 hours 45 minutes.
Assignment Questions:
There are eight randomly selected multiple-choice questions, each worth five points
.There are eight randomly selected short answer questions, each worth 10 points
.There are eight randomly selected essay questions, each worth 20 points.
On the essay questions, your answers should be succinct, should fully address each part of the question, and should demonstrate your knowledge and understanding in a concise but complete answer. Most essay questions require answers that are a couple of paragraphs (not a couple of sentences) that directly speak to each part of the question.
.Remember to always use proper citation when quoting other sources. This means that ANY borrowed material (even a short phrase) should be placed in quotation marks with the source (URL, author/date/page #) immediately following the end of the passage (the end quote). Changing a few words in a passage does NOT constitute putting it in your own words, and proper citation is still required. Borrowed material should NOT dominate a students work but should only be used sparingly to support your own thoughts, ideas, and examples. Heavy usage of borrowed material (even if properly cited) can jeopardize the points for that question. Uncited material can jeopardize a passing grade on the exam. As a part of our commitment to academic integrity, your work may be submitted to turnitin.com, an online plagiarism checking service, so please be VERY mindful of proper citation.
Some of the key study areas are below:
Although these are key areas, remember that the exam is comprehensive for all of the assigned course content and this study guide may not be all-inclusive
.Key financial ratios
Statement of operations
Steps in financial analysis
Integrated delivery systems
Future trends impacting financial analysis
Horizontal and vertical financial analysis
Four key financial statements and how each is important to the CEO
Method of payment and how hospitals can impact it
Accounting versus finance
Baby Boomer impacts on healthcare
Monitoring physicians
Accounts receivable management
Materials management
Operating income versus other income
Explanatory notes
Capitation
Retrospective versus prospective reimbursement
Working capital
Reviewing the TCOs, which I have listed below for your convenience, will also be a great preparation for this assignment:
A- Given the necessity for access to capital, analyze the various merits of obtaining the needed finances through debt, equity, or lease arrangements. Assess the relative advantages and/or disadvantages of each, with particular reference to tax implications and regulations.
B- Given that healthcare organizations serve as community resources and that they are also complex business entities, examine and apply the major financial objectives the leadership of a healthcare entity must possess to fulfill both these roles and survive economically.
C- Given that healthcare is pluralistic in the way it is financed, formulate a plan to address the issues surrounding third-party payments: payment methodologies of government healthcare programs, complex receivables management, managed care requirements, and corporate compliance plans.
D- Given that the purpose of financial management is to analyze the financial information provided by managerial accounting in order to evaluate past decisions and to make sound decisions regarding the future of the healthcare organization, evaluate managerial ratios such as collections, operating revenue, accounts receivable, and overhead ratios, and show their relationship to financial management.
E- Given the purpose of healthcare financial management in accomplishing the healthcare organizations objectives, identify and analyze the importance of the six basic financial objectives of a given healthcare entity.
F- Given that baby boomers are moving to the 5060-plus age group, analyze the unprecedented demand they will have on the healthcare industry and how the Patients Bill of Rights will affect this demand. Describe the implications of financing their care.
G- Given the fact that the government is intruding into the healthcare industry and affecting the financial management of healthcare organizations, assess the impact of the resource-based relative value system (RBRVS), the prospective payment system (PPS), the outpatient ambulatory patient groups (APGs), the mandated compliance issues, SCHIP, and HIPAA on the financial management of a given healthcare organization.
H- Given the trend toward creation of integrated health service systems, distinguish the rationale for merger, acquisition, and joint-venture activity among health service organizations. In specific case examples, identify the business and financial considerations of such decisions for the organizations involved.
