HSM 340 Week 4 Discussion Question 1 and 2 ( Financial Sources and Financial Theories and Concepts) | GRADED

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HSM 340 Week 4 Discussion Question 1 and 2 List the major nonhospital & nonphysician sectors of the healthcare industry The Health Care Sector encompasses two main industry groups. The fir... st includes companies who manufacture health care equipment & supplies or provide health care related services, including distributors of health care products, providers of basic health-care services, & owners & operators of health care facilities & organizations. The second regroups companies primarily involved in the research, development, production & marketing of pharmaceuticals & biotechnology products. The Pharmaceutical sector is an industry that develops, produces, & markets drugs or pharmaceuticals licensed for use as medications.Pharmaceutical companies arelowed to deal in generic or brand medications & medical devices. They are subject to a vaiety of laws & regulations regarding the patenting, testing & ensuring safety & efficacy & maketing of drugs. The biotechnology sector is refers to a medicinal or diagnostic product or a vaccine that consists of, or has been produced in, living organisms & may be manufacturedvia recombinant technology recombinant DNA is a form of DNA that does not exist naturally It is created by combining DNA sequences that would not normally occur together. Thistechnology has a tremendous impact on meeting the needs of patients & their families as it ot only encompasses medicines & diagnostics that are manufactured using a biotechnological process, but also gene & cell therapies & tissue engineered products. Today, the majority of innovative medicines, whether manufactured using biotechnology or via a chemical synthesis like a traditional small molecule medicine, as well as many diagnostic products, are made available by applying modern biotechnology in their development & manufacturing processes. 2nd Response Non-hospital & non-physician sectors of the healthcare industry are: Nursing homes 1. Medical groups 2. Health plans also other sectors of the healthcare industry involves Medical insurance, medical services & managed care & Pharmaceuticals- Over-the-counter (OTC) drugs & Drug Stores, Prescription drugs, Biopharmaceutical drugs, Generic drugs, Dietary Fiber Supplement, Vitamin & Supplement, Cough & Cold Medicine. Describe the two major theories used for the detection of out-of-control costs. This section lists options that can be used to view responses. The two major theories that are used to detect out-of-control costs are: 1. Classical Statistical Theory & 2. Decision Theory Application: Classical statistical Theory uses the control chart as its primary tool, to monitor a physical process This study source was downloaded by 100000849840424 from CourseHero.com on 10-05-2022 23:58:32 GMT -05:00 by comparing output observations with predetermined tolerance limits. This chart helps as a means to determine which cost variances to investigate. The Statistical process control serves as a tool for research & health care improvement. The control chart provides researcers & practitioners with a method of better understanding & communicating data from heath care improvement efforts. Decision Theory provides the basis or outline for directly integrating the probability of the system eing out of control & the cost & benefits of investigation into a definite decision rule. The payoff able is the pivotal tool used in this theory; placing emphasis on costs & benefits. This table has he primary objective to minimize the actual cost for a given situation; requiring estimates of the robabilities for the two states, in control & out of control; both are required. http://www.ncbi.nlm.nih.gov/pmc/articles/PMC1758030/pdf/v012p00458.pdf leverley, W.O., &Cleverley, J. O., & Song, P. H. (2011) 2nd Response think the potential for health care cost can get out of control & can bankrupt families, usinesses, state & federal government it comes down basically if you should pay for ealth insurance of feed your families. But how do you deal with this one solution is ot to shift the cost to consumers & make them pay more out of pocket because the aste & the expense is not driven by the consumers. This is why first we have to chane the incentives of the expensive wasteful & inefficient care & then we have to concenrate on our health care system that enables the resistance to cost saving reforms tha normally makes the prices sky high. 5. Question : (TCO 3) Us the following data to calculate the variances in problem. our hospital has been approached by a major HMO to perform all heir MS-DRG 470 cases (major joint procedures). They have offered flat price of $10,000 per case. You have reviewed your charges for MS-DRG 470 during the last year & found the following profile: The HMO in the above example has indicated that their doctors use less expensive joint implants. If this less expensive implant is used, your medical supply charges would be reduced by $2,000. What is the estimated reduction in variable cost? Student Answer: $900 = $2,000 × 0.50 × 0.90 6. Question : (TCO 2) Explain the difference between the accrual basis of accounting & the cash basis of accounting.? Student Answer: The cash basis of accounting records revenues when cash is received & expenses when cash is paid out. The accrual basis of accounting records revenues when they are earned & expenses when resources are used. This study source was downloaded by 100000849840424 from CourseHero.com on 10-05-2022 23:58:32 GMT -05:00 7. Question : (TCO 2) What are the double-entry accounting system & the duality concept? How are they related? Student Answer: Double entry accounting is based on the fact that every financial transaction has equal & opposite effects in at least two different accounts. The equation used is Assets = Liabilities + Equity. Duality concept stems from the fact that every transaction has a double effect on the position of a business as recorded in the accounts. Transactions are recorded in terms of debits & credits. Since a debit in one account will be offset by a credit in another account, the sum of all debits must be exactly equal to the sum of all credits. This study source was downloaded by 100000849840424 from CourseHero.com on 10-05-2022 23:58:32 GMT -05:00 [Show More]

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