Healthcare financial terms
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 using 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 that the term refers to in 125 to 150 words. 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.
[Type your name here.]
Term Definition Scenario
Definition: Controlling is a management function that involves setting standards, monitoring actual performance against those standards, and taking corrective action as needed.
Scenario: In a healthcare organization, controlling is crucial to ensure that the quality of patient care meets or exceeds the established standards. For instance, a hospital can use controlling to monitor the time taken by the staff to respond to an emergency call, the accuracy of medication dispensation, and the patient satisfaction levels. By closely monitoring these key performance indicators, hospital administrators can identify the areas that need improvement and take corrective action to ensure high-quality patient care. On the other hand, if the hospital does not control its processes, it can lead to negative patient outcomes, increase the risk of medical malpractice, and erode the reputation of the hospital.
Term: Decision making
Definition: Decision making refers to the process of identifying a problem, generating alternatives, and choosing the best course of action based on the available information and resources.
Scenario: In a healthcare organization, decision making is essential in providing effective and efficient healthcare services. For example, healthcare providers must make critical decisions about patient diagnosis, treatment plans, and medication choices. If the decision-making process is flawed, it can result in negative patient outcomes, medical errors, and malpractice suits. On the other hand, good decision making can lead to positive patient outcomes, improved health outcomes, and cost savings for both the patient and the healthcare provider.
Definition: Organizing is the process of arranging resources to achieve specific goals and objectives. In healthcare management, organizing involves allocating resources such as personnel, equipment, and finances to deliver high-quality patient care.
Scenario: Organizing is crucial in ensuring that a healthcare organization is efficient, effective, and can deliver high-quality patient care. For instance, in a hospital setting, organizing involves ensuring that there are enough staff members to attend to patients, that medical equipment is adequately maintained and readily available, and that adequate funds are allocated to support patient care. When organizing is done effectively, it can lead to improved patient outcomes, better healthcare service delivery, and a more satisfied workforce. However, inadequate organizing can lead to understaffing, low morale among healthcare providers, and negative patient outcomes.
Definition: Planning refers to the process of setting goals, developing strategies, and outlining the steps necessary to achieve specific objectives. In healthcare management, planning is essential in ensuring that the organization can deliver high-quality patient care.
Scenario: Planning is critical in ensuring that a healthcare organization can respond effectively to patient needs. For instance, planning can involve developing a budget for the organization, outlining staffing requirements, and developing strategies to improve patient outcomes. Good planning can lead to a more efficient organization, better patient outcomes, and increased patient satisfaction. However, inadequate planning can lead to financial inefficiencies, understaffing, and decreased patient satisfaction.
Term: Original records
Definition: Original records refer to the primary source documents that provide evidence of the care provided to patients. Original records include patient charts, medical orders, and laboratory results.
Scenario: Original records are crucial in healthcare management as they provide the basis for decision making, billing, and legal compliance. For example, a healthcare provider can use the original records to verify the diagnosis, treatment plan, and medication provided to a patient. Original records also provide the basis for billing, and healthcare providers can use them to comply with legal requirements such as HIPAA. Good record-keeping practices can lead to better patient outcomes, improved compliance, and increased efficiency. However, poor record keeping practices can lead to legal and financial liabilities, decreased patient satisfaction, and poor decision making.