Question 1

Hospital Long Term Debt Financing Methods

Accepted Answer

1. Debt financing- not-for-profits
2. Stock- propriety

*Early collaborative efforts between hospitals centered around group purchasing power.

Question 2

Three Central Lines of Authority For Hospital Organization

Accepted Answer

1. Medical Staff
2. Administration
3. Board

Question 3

Community Hospital

Accepted Answer

A classification of hospital that indicates a facility, usually a not-for-profit hospital that is developed in and operated by the community.

Question 4

Syndicated Hospital

Accepted Answer

A for-profit hospital that has physicians as investor/owners.

Question 5

Public Hospital

Accepted Answer

A government-supported hospital, at the federal, state, or local level.

Question 6

Vertical Integration

Accepted Answer

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).

Question 7

For-Profit-Hospital

Accepted Answer

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).

Question 8

Free-Standing Hospital

Accepted Answer

A hospital unaffiliated with any other or with a hospital system.

Question 9

501(c)(3) Hospital

Accepted Answer

A not-for-profit hospital is organized as tax-free under the internal revenue service tax code section 501(c)(3).

Question 10

Capitation

Accepted Answer

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.

Question 11

Average Length of Stay (ALOS)

Accepted Answer

A statistical average for the number of days a patient stays, as an inpatient in a hospital.

Question 12

Teaching Hospital

Accepted Answer

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.

Question 13

Disproportionate Share Hospital Payments (DSH)

Accepted Answer

Combined federal and state program that provides additional funding to hospitals that treat a higher percentage of medicare and/or medicaid patients.

Question 14

Horizontal Integration

Accepted Answer

Development of a continuum of care, from health promotion to palliative care.

Question 15

Hill Burton Act of 1946

Accepted Answer

Funding to build hospitals in rural areas.

Question 16

Not-For-Profit Hospital

Accepted Answer

Hospital structured as a 501(c)(3) organization under the IRS code.Profit from operations are reinvested in the organization.

Question 17

Specialty Hospital

Accepted Answer

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.

Question 18

Certificate of Need (CON)

Accepted Answer

Required government bodies aided by consumer groups to review and approve or disapprove health facility capital expenditures, new and replacement projects.

Question 19

Critical Access Hospitals (CAHS)

Accepted Answer

Rural hospitals that meet certain eligibility requirements to receive cash cost-based medicare reimbursement.

Question 20

Sole Community Hospital

Accepted Answer

The only general, acute care hospital available in a service area.

Question 21

Hospital System

Accepted Answer

The organization of a number of hospitals, from several to many, into a system that provides direction and administration services from a central office.

Question	Answer
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.

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Chapter 9: Hospitals

Hospitals