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Chapter 9: Hospitals


Hospital Long Term Debt Financing Methods 1. Debt financing- not-for-profits 2. Stock- propriety *Early collaborative efforts between hospitals centered around group purchasing power.
Three Central Lines of Authority For Hospital Organization 1. Medical Staff 2. Administration 3. Board
Community Hospital A classification of hospital that indicates a facility, usually a not-for-profit hospital that is developed in and operated by the community.
Syndicated Hospital A for-profit hospital that has physicians as investor/owners.
Public Hospital A government-supported hospital, at the federal, state, or local level.
Vertical Integration A hospital extends its reach to capture and control more services that lead to inpatient hospitalization (without necessarily expanding its continuum of care: for example, hiring primary care physicians).
For-Profit-Hospital A hospital that is organized as a legal, tax-paying entity, and financed by shareholders who expect some return on their investment (also called proprietary).
Free-Standing Hospital A hospital unaffiliated with any other or with a hospital system.
501(c)(3) Hospital A not-for-profit hospital is organized as tax-free under the internal revenue service tax code section 501(c)(3).
Capitation A payment system used in managed care in which the provider is paid a fixed, predetermined amount on a regular basis (usually monthly), for the provision of all covered benefits to the insure individual.
Average Length of Stay (ALOS) A statistical average for the number of days a patient stays, as an inpatient in a hospital.
Teaching Hospital A tertiary or higher-level hospital, including academic health centers, that participates in the on-dash site training of physicians and other types of health personel.
Disproportionate Share Hospital Payments (DSH) Combined federal and state program that provides additional funding to hospitals that treat a higher percentage of medicare and/or medicaid patients.
Horizontal Integration Development of a continuum of care, from health promotion to palliative care.
Hill Burton Act of 1946 Funding to build hospitals in rural areas.
Not-For-Profit Hospital Hospital structured as a 501(c)(3) organization under the IRS code.Profit from operations are reinvested in the organization.
Specialty Hospital Provide services targeted to a specific disease or major human function/system (for example, an orthopedics hospital). * AHA reported that hospitals provided uncompensated care in the amount of $25 billion in 2004.
Certificate of Need (CON) Required government bodies aided by consumer groups to review and approve or disapprove health facility capital expenditures, new and replacement projects.
Critical Access Hospitals (CAHS) Rural hospitals that meet certain eligibility requirements to receive cash cost-based medicare reimbursement.
Sole Community Hospital The only general, acute care hospital available in a service area.
Hospital System The organization of a number of hospitals, from several to many, into a system that provides direction and administration services from a central office.
Created by: Princess Peach