INTRODUCTION HEALTH CARE FINANCE HEALTH CARE IS A
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INTRODUCTION HEALTH CARE FINANCE
HEALTH CARE IS A BUSINESS � 3 T across the world = 2. 1 US �Political activity �Largest sector �Employs most people �Largest % of GDP
How do we know HC is a business? �A business needs to have sufficient revenue to pay all of the costs associated with creating and selling its good or services
Health care is different/health care is the same �Same ◦ Must generate cash flows, just as everyone else
Health care is different/health care is the same �Different ◦ Abundance of agency relationship ◦ Health care is delivered by a complex mixture of government, private NFP, and private FP organization ◦ Health care is delivered in a regulatory environment ◦ Wider range of financing options available �Tax-exempt �Bank, Investors
Different, cont. ◦ Most of the revenues received comes from third-party payers ◦ Growing more rapidly than other sector in the US economy ◦ Many organizations are not for profit
Major industries in the health care sector Industry Health services Health insurance Medical supplies Pharmaceuticals and biotech Other What’s included Medical practice, hospitals, clinics, nursing homes, home health, hospice Gov’t programs; commercial; ESHI; managed care Diagnostic equipment, medical supplies, surgical instruments Drugs and otherapeutic products Educational institutions; research; consultation Example
Hospitals �Provide diagnostic and therapeutic services to individuals that require several hours (overnight) care; also provide walk-in services
AMBULATORY CARE �Outpatient �Locations- clinics, medical practices, ER, home health, urgent care, retail clinic
LONG-TERM CARE �Provide care to individuals who lack all or some functional ability
OTHER TYPES �HOSPICE �PALLIATIVE CARE �HOME HEALTH
HEALTH INSURANCE �A significant portion of services are paid for by 3 rd party payers (AKA insurers) �Public �Private
Insurance, cont. �Other ◦ Organization self-insured ◦ Non-health insurance �Home �Car �Boat ◦ Worker’s compensation ◦ Victims of crime
Types of care primary secondary tertiary
L 101 lesson 2
Introduction of health care delivery system
Chapter 1 introduction to health care agencies
Qi 101: introduction to health care improvement
Care value base health and social care
Financial problem introduction
Introduction to corporate finance
Introduction to econometrics for finance
Introduction to personal finance
Chapter 1 introduction to personal finance
Introduction to corporate finance quiz
Corporate finance chapter 1
Public finance meaning
