HAC Healthcare Financial Analytics Flashcards

Which financial metric measures the total cost incurred to treat a patient from admission through discharge and follow-up care?

Answer: Cost per episode of care

Cost per episode of care captures all expenses associated with treating a condition from initial encounter through post-discharge follow-up.

In healthcare financial analytics, what does the term 'payer mix' refer to?

Answer: The distribution of patients by insurance type (Medicare, Medicaid, commercial, self-pay)

Payer mix describes the proportion of a hospital's patients covered by each insurance category, which directly affects reimbursement rates and revenue.

Which financial analysis technique compares actual healthcare spending against pre-established budget targets to identify variances?

Answer: Budget variance analysis

Budget variance analysis identifies and quantifies differences between planned and actual financial performance, guiding corrective action.

What is a charge master (chargemaster) in a hospital setting?

Answer: A comprehensive list of all billable services, supplies, and procedures with their standard prices

The chargemaster is the hospital's official price list for every service and supply, serving as the basis for all billing before payer-specific adjustments.

Which ratio best measures a hospital's ability to cover its short-term financial obligations?

Answer: Current ratio

The current ratio (current assets ÷ current liabilities) directly measures short-term liquidity and the ability to meet near-term obligations.

In value-based payment models, what financial incentive structure rewards providers for keeping total spending below a pre-set benchmark?

Answer: Shared savings arrangement

Shared savings arrangements allow providers to retain a portion of any spending below the established benchmark, incentivizing efficient care.