January 17, 2016
1.4 What role does regulation play in the healthcare organizations?
- Regulation plays the role of making sure that all healthcare organizations and their professionals
adhere to the regulations for example lice
2.2 What are three legal forms of business organization? What are their advantages and disadvantages?
- Three legal forms of business organizations are proprietorships and partnerships which, are either
owned by one person ( proprietorship) or o
February 1, 2016
3.3 What is the difference between fee for service reimbursement and capitation?
-The difference between fee for service and capitation is that with capitation the provider is paid
a fixed amount regardless of t
4.2 a. What is meant by a businesss underlying cost structure?
-Underlying cost structure is used for planning, control, and decision making. It is useful is
showing the association between volume and costs.
February 21, 2016
5.1 a. What per visit price must be set for the service to break even?
(10,000 x P) - (10,000 x $5) - 500,000- 50,000 = 0
10,000 x P = $600,000
To earn an annual profit of $100,000?
$600,000 + $100,000 =
March 6, 2016
7.3 Define average collection period. How is it used to monitor a firms accounts receivable?
- Average collection period is the average time that it takes a provider to collect for services rendered. It
March 20, 2016
8.1 The two primary factors that affect interest rates on debt securities are risk and inflation. Explain
the role of each factor.
The role of inflation is that it erodes the purchasing power of the dollar and
February 28, 2016
6.1 Why are planning and budgeting so important to an organizations success?
Planning and budgeting is so important to an organizations success because planning and budgeting
plays a critical role in the fun
9.1 a. What is a capital investment analysis? Why are capital investment decisions so important to
A capital investment analysis is a budgeting procedure that companies and government agencies use to
assess the potential profitability of a lon