Financial Management In Healthcare
Expert-defined terms from the Postgraduate Certificate in Health Financing and Budgeting course at HealthCareCourses (An LSIB brand). Free to read, free to share, paired with a professional course.
Accountability in healthcare refers to the responsibility of healthcare provider… #
This concept is closely related to transparency, governance, and quality of care. In the context of financial management in healthcare, accountability involves ensuring that healthcare providers are responsible for the effective and efficient use of resources.
Activity #
Based Costing (ABC) is a method of costing that assigns costs to activities, such as patient care, research, and education, rather than to departments or functions. This approach helps healthcare organizations to identify areas where costs can be reduced or optimized. Related terms include cost allocation, cost center, and activity analysis.
Budgeting in healthcare involves the process of planning, allocating , and… #
A budget is a detailed financial plan that outlines projected income and expenditures over a specific period. Related terms include financial planning, resource allocation, and cost control.
Capitation is a payment method in which a healthcare provider is paid a fixed am… #
This approach is often used in managed care organizations and is intended to incentivize providers to deliver high-quality, cost-effective care.
Case Mix is a measure of the severity and complexity of patients t… #
It is often used to adjust payments to providers to reflect the relative cost of treating different types of patients. Related terms include diagnosis-related groups (DRGs) and resource intensity.
Clinical Governance is a framework for ensuring that healthcare organizations pr… #
It involves monitoring and improving clinical practices, managing risks, and enhancing patient experience. Related terms include quality improvement, patient safety, and clinical effectiveness.
Cost #
Benefit Analysis (CBA) is a method of evaluating the costs and benefits of a healthcare program or intervention. It involves comparing the expected costs of a program with its expected benefits, expressed in monetary terms. Related terms include cost-effectiveness analysis and cost-utility analysis.
Cost #
Effectiveness Analysis (CEA) is a method of evaluating the costs and outcomes of a healthcare program or intervention. It involves comparing the expected costs of a program with its expected health outcomes, such as quality-adjusted life years (QALYs). Related terms include cost-benefit analysis and cost-utility analysis.
Cost #
Sharing is a payment arrangement in which patients pay a portion of the costs of healthcare services, such as copayments, coinsurance, or deductibles. This approach is intended to incentivize patients to use healthcare services wisely and to reduce unnecessary utilization.
Diagnosis #
Related Groups (DRGs) are a system of classifying patients into groups based on their diagnosis, procedure, and severity of illness. DRGs are often used to adjust payments to providers to reflect the relative cost of treating different types of patients.
Disinvestment is the process of withdrawing or reducing investment… #
This approach is intended to free up resources for more effective or higher-priority programs.
Efficiency in healthcare refers to the ability of healthcare providers to delive… #
This concept is closely related to productivity, quality, and value for money. In the context of financial management in healthcare, efficiency involves optimizing resource use, reducing waste, and improving processes.
Evidence #
Based Medicine (EBM) is an approach to healthcare that involves using best available evidence to inform clinical decisions. EBM is intended to improve the quality and safety of care, reduce unnecessary variation, and enhance patient outcomes.
Financial Management in healthcare involves the process of planning, allocati… #
This includes budgeting, forecasting, financial reporting, and financial analysis.
Financial Planning in healthcare involves the process of developing a detailed f… #
This includes budgeting, forecasting, and financial modeling.
Funding Models in healthcare refer to the different ways in which healthcare ser… #
Each funding model has its own strengths and weaknesses, and the choice of funding model can influence the behavior of healthcare providers.
Global Budget is a payment arrangement in which a healthcare provider is paid a… #
This approach is intended to incentivize providers to deliver high-quality, cost-effective care.
Healthcare Financing refers to the ways in which healthcare services are paid… #
Healthcare financing is a critical component of health systems, as it can influence access to care, quality of care, and health outcomes.
Health Economics is the study of the economic aspects of healthcare, incl… #
Health economics involves the application of economic theories and methods to analyze healthcare issues and evaluate healthcare programs.
Health Technology Assessment (HTA) is a systematic evaluation of the clinical… #
HTA is intended to inform decision-making about the adoption and use of healthcare technologies.
Incremental Budgeting is a method of budgeting that involves making small, incre… #
This approach is often used in healthcare organizations, as it can simplify the budgeting process and reduce the risk of error.
Insurance in healthcare refers to a system of financing in which individuals or… #
Insurance can protect individuals and families from financial risk and ensure access to necessary care.
Managed Care is a system of healthcare delivery that involves a combination of <… #
Managed care organizations (MCOs) aim to control costs, improve quality, and enhance patient experience through care coordination, utilization review, and quality improvement initiatives.
Marginal Analysis is a method of evaluating the costs and benefits … #
Marginal analysis is intended to inform decisions about the optimal level of resource allocation.
Need #
Based Financing is a system of financing in which healthcare services are financed based on the needs of the population, rather than on the ability to pay. This approach is intended to ensure equitable access to necessary care, regardless of income or socioeconomic status.
Opportunity Cost is the value of the next best alternative that is for… #
In the context of financial management in healthcare, opportunity cost is an important consideration, as it can inform decisions about the allocation of resources.
Outcomes #
Based Financing is a system of financing in which healthcare services are financed based on the outcomes achieved, rather than on the volume or intensity of services provided. This approach is intended to incentivize providers to deliver high-quality, effective care.
Pay #
For-Performance (P4P) is a payment arrangement in which healthcare providers are paid based on their performance on specific quality metrics, such as patient satisfaction or clinical outcomes. P4P is intended to incentivize providers to deliver high-quality care and to improve patient outcomes.
Pharmaco #
Economics is the study of the economic aspects of pharmaceuticals, including their cost, effectiveness, and value. Pharmaco-economics involves the application of economic theories and methods to analyze pharmaceutical issues and evaluate pharmaceutical programs.
Priority Setting in healthcare involves the process of allocating resourc… #
Priority setting is a critical component of health systems, as it can influence access to care, quality of care, and health outcomes.
Prospective Payment System (PPS) is a payment arrangement in which healthcare pr… #
PPS is intended to incentivize providers to deliver high-quality, cost-effective care.
Quality #
Adjusted Life Year (QALY) is a measure of the value of a healthcare program or intervention, taking into account both the quantity and quality of life. QALYs are often used in cost-effectiveness analysis and cost-utility analysis.
Resource Allocation in healthcare involves the process of allocating reso… #
Resource allocation is a critical component of health systems, as it can influence access to care, quality of care, and health outcomes.
Retrospective Payment System is a payment arrangement in which healthcare provid… #
This approach is often used! In fee-for-service payment arrangements.
Return On Investment (ROI) is a measure of the return on investment of a… #
ROI is often used to evaluate the financial performance of healthcare programs or services.
Risk Sharing in healthcare involves the process of sharing the financi… #
Risk sharing is intended to reduce the financial burden on individuals and families and to ensure access to necessary care.
Sensitivity Analysis is a method of analyzing the results of a model</… #
Sensitivity analysis is often used in cost-effectiveness analysis and cost-utility analysis.
Stakeholder Analysis is a method of identifying and analyzing the inte… #
Stakeholder analysis is intended to inform decision-making about healthcare programs or services.
Supply #
Side Financing is a system of financing in which healthcare services are financed based on the supply of services, rather than on the demand for services.
Sustainability in healthcare refers to the ability of healthcare systems to c… #
Sustainability is a critical component of health systems, as it can influence access to care, quality of care, and health outcomes.
Time #
Driven Activity-Based Costing (TDABC) is a method of costing that assigns costs to activities based on the time required to perform them. TDABC is intended to provide a more accurate and detailed understanding of the costs of healthcare services.
Value #
Based Payment (VBP) is a payment arrangement in which healthcare providers are paid based on the value of care provided, rather than on the volume or intensity of services. VBP is intended to incentivize providers to deliver high-quality, cost-effective care.
Value For Money (VFM) in healthcare refers to the value of healthcare ser… #
VFM is a critical component of health systems, as it can influence access to care, quality of care, and health outcomes.
Zero #
Based Budgeting is a method of budgeting that involves starting from a zero base and justifying every expenditure from scratch. This approach is intended to ensure that resources are allocated efficiently and effectively, and to reduce waste and inefficiency.