Ch 10: Financial Assessment in Healthcare

About This Chapter

Review financial assessment in healthcare with this useful online study guide resource. The chapter offers expertly taught lessons and mini quizzes that can be used for a variety of purposes, including homework help, test preparation, independent learning and professional development.

Financial Assessment in Healthcare - Chapter Summary

This comprehensive healthcare finance chapter outlines various methods of financial assessment in healthcare contexts. Work through these engaging video and text-based lessons at your own pace to become familiar with concepts like financial statement analysis, financial ratio analysis, benchmarking, discrete event simulation and more. Included in the chapter are printable lesson transcripts, short quizzes and a comprehensive multiple-choice exam. We've also made the chapter accessible 24/7 so you can study these topics whenever it's convenient. When you're finished working through the chapter, you should be equipped to:

  • Explain the purpose of financial statement analysis
  • Define/apply financial ratio analysis
  • Analyze profitability, liquidity, leverage and activity ratios
  • Outline the process of benchmarking
  • Discuss the functions and benefits of profit analysis in healthcare settings
  • Describe the advantages of comparative financial statements
  • Recognize the purpose of discrete event simulation
  • Assess benchmarking types and benefits in healthcare

11 Lessons in Chapter 10: Financial Assessment in Healthcare
Test your knowledge with a 30-question chapter practice test
Financial Statement Analysis: Definition, Purpose, Elements & Examples

1. Financial Statement Analysis: Definition, Purpose, Elements & Examples

In this lesson, we'll define financial statement analysis and discuss the main categories. You'll also learn how to calculate a financial ratio in each category and analyze the results.

Defining and Applying Financial Ratio Analysis

2. Defining and Applying Financial Ratio Analysis

In this lesson, we'll define financial ratios. You'll learn the three main categories of financial ratios, and we'll show an example of each. We'll also discuss an analysis of each example.

Profitability Ratio: Definition, Formula, Analysis & Example

3. Profitability Ratio: Definition, Formula, Analysis & Example

How do you know if a company is performing well? In this lesson, you'll learn about various profitability ratios, including what they mean, their formulas and examples illustrating them. A short quiz follows the lesson.

Liquidity Ratio: Definition, Calculation & Analysis

4. Liquidity Ratio: Definition, Calculation & Analysis

The financial stability of a company can be tested in many ways. One of the quickest ways to see just how well a company is performing is to use financial ratios. In this lesson, you will learn what liquidity ratios are, how to calculate them, and how to interpret them.

Leverage Ratios: Types & Formula

5. Leverage Ratios: Types & Formula

In this lesson, we'll define leverage. We'll review three types of financial leverage ratios: debt ratio, debt-to-equity ratio, and interest coverage ratio. You'll also learn how to calculate and analyze the results.

Activity Ratios: Definition, Formula & Analysis

6. Activity Ratios: Definition, Formula & Analysis

Businesses need to know how soon they can convert their assets into cash. They use activity ratios to figure it out. In this lesson, you'll learn the definition of activity ratio, as well as about some common types.

What is Benchmarking? - Definition, Types, Process & Examples

7. What is Benchmarking? - Definition, Types, Process & Examples

Companies use benchmarking as a way to compare key metrics to other businesses in the industry. This allows companies to see how well they are performing and identify ways they can become more competitive in the industry. In this lesson, we will look at the different types of benchmarking, the stages of benchmarking, and a real world example.

Profit Analysis in Healthcare

8. Profit Analysis in Healthcare

In this lesson, we'll define profit analysis and discuss how patient volume impacts profitability. You'll also learn the difference between Fee-For-Service and Capitation Reimbursement.

Comparative Financial Statements: Definition & Advantages

9. Comparative Financial Statements: Definition & Advantages

In this lesson, we'll define comparative financial statements. You'll also learn about the three advantages in constructing comparative financial statements: using percentages, analyzing trends, and comparing between different-sized companies.

Discrete Event Simulation for Healthcare Organizations

10. Discrete Event Simulation for Healthcare Organizations

Have you heard of discrete event simulation (DES), where modeling is used to represent complex systems as a sequence of discrete events? In this lesson, you'll learn about DES as it is used increasingly in healthcare for improvement of services.

Benchmarking in Healthcare: Definition, Types & Benefits

11. Benchmarking in Healthcare: Definition, Types & Benefits

Benchmarking is a business concept that was imported into healthcare as the industry began to look at quality and safety and how it could be applied to facilitate change. In this lesson, you'll learn about benchmarking types and benefits.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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