13 Mar Using a hospital to illustrate your answer
Write a clear response, and be sure that you utilize good writing skills, with thoughts are complete. The answers must be typed. Make sure your name is on each page, and your answers identify the questions being answered. You may utilize your textbook and notes. Spelling, grammar and/or typographical errors may cause you to lose point. Scholarly references may be used for each question. You can utilize additional pages as long as the question number appears next to your response.
1. What are some forms of regulation in the healthcare industry?
2. What are the most pressing legal issue facing healthcare providers today?
3. What is the difference between a business and a pure charity?
4. What are the three basic forms of business organization, and how do they differ?
5. What are the major differences between investor-owned and non-for-profit corporation?
6. What are adverse selection and moral hazard? How do insurers deal with these problems?
7. What is meant by the term “managed care organization (MCO)”? And, what makes this different from an insurer?
8. What provider incentives are created under (a) cost-based reimbursement, (b) prospective payment, and (c) capitation?
9. What is the primary purpose of managerial accounting information?
10. What is meant by the term “cost”? And, what are the two primary ways that cost can be designated?
11. What is meant by underlying cost structure?
12. What are two characteristics make an effective cost driver? And, give an example of a cost driver?
13. What are the four steps in the cost allocation process?
14. Explain the difference between fixed and variable costs? And, are fixed costs permanently fixed?
15. (a) Using a hospital to illustrate your answer, explain the difference between a price setter and a price taker (b) can most providers be classified strictly as price setters or price takers?
16. Explain the essential differences between full-cost pricing and marginal cost pricing strategies.
17. (a) Define contribution margin. (b) What is its economic meaning?
18. Describe the components of a financial plan.
19. What is variance analysis? (Provide 4 Examples)
20. Describe the components of Balance Sheet.
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