Healthcare Analyst Financial Management & Budgeting Flashcards

Which financial metric measures the percentage of billed services that a healthcare organization actually collects?

Answer: Collection rate

The collection rate measures the percentage of billed charges that are actually collected after adjustments and write-offs.

In healthcare budgeting, what does a 'variance analysis' primarily examine?

Answer: Differences between budgeted and actual financial results

Variance analysis compares budgeted (planned) figures to actual results to identify discrepancies and their causes.

What is the primary purpose of a healthcare organization's operating budget?

Answer: To plan and control day-to-day revenues and expenses

The operating budget plans and controls the routine revenues and expenses necessary for daily healthcare operations.

Which of the following best describes 'days in accounts receivable (AR)' in healthcare?

Answer: The average number of days it takes to collect payment after service delivery

Days in AR measures the average time between providing a service and receiving payment, indicating billing and collection efficiency.

A healthcare analyst notices that supply costs increased by 15% while patient volume increased by only 5%. This is an example of what type of variance?

Answer: Unfavorable efficiency variance

An unfavorable efficiency variance occurs when costs grow faster than the corresponding volume or output, indicating inefficient resource use.

Which reimbursement model pays healthcare providers a fixed amount per patient per month regardless of services used?

Answer: Capitation

Capitation pays a set monthly fee per enrolled patient, transferring financial risk to the provider to manage care efficiently.