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QUESTION
Chapter 1
This course introduces the concepts and methods of financial management in a healthcare environment. This is an overview of the finance and accounting principles and practices used within healthcare organizations.
Financial management plays a critical role in assuring that a healthcare organization is profitable, viable, and able to achieve its goals or mission. Leaders of healthcare organizations must have a foundational knowledge of key financial concepts and techniques, as well as how these principles are influenced by the unique characteristics of the healthcare industry. Although organizations have individuals who focus almost exclusively on financial operations, all managers are expected to incorporate sound financial principles and practices into their decision-making, and others who have a relationship with the organizations can benefit from understanding these matters as well.
1 Briefly discuss the role of finance in the healthcare services industry. Has this role increased or decreased in importance in recent years? What is the impact of the Affordable Care Act (ACA) on the role of finance?
2 What are some of the industries in the healthcare sector? What is meant by the term healthcare finance? What are the two broad areas of healthcare finance?
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