Question

1. Which of these is not one of the driving forces of health care finance and managed care? Group of answer choices

A.Cost Reimbursement

B.Managing Dollars and Resources to reduce

C.Costs Managing Risk or Shifting the risk to others

D. Law of Large Numbers and Leverage

2. What type of financial statement documents and tracks how cash is created and the expenditures made within a specific period of time using that cash?

Group of answer choices

A. Cash Flow Statement

B. Income Statement

C. Balance Sheet

D. Capital Budget Request

Answer 1

a. Driving forces of health care finance and managed care :

1. Cost reimbursement is the payment that the hospital or other healthcare providers receive for giving a medical service.
2. Managing Dollars and Resources is also important because it helps in conducting smooth operations. Without managing the money and resources, no organisation can survive for long. Poor management of resources would lead to bad debts, overpaying for medical equipments, wasteful expenses, etc. and ultimately closing down of facility.
3. Costs Managing Risk or Shifting the risk to others in health care finance is important because it can lower the total costs of care and in turn help in improving the quality of health care.

Law of large numbers state that as the the sample size increases, it approaches the population mean. It is not much relevant in case of health care finance i.e. it is not one of the driving forces of health care finance and managed care.

Hence, based on above, answer is D. Law of Large Numbers and Leverage.

b. Cash flow statement provides information about entity's cash receipts and cash payments and tracks how cash is created and the expenses are incurred in cash during an accounting period.

Income statement reports the revenues and expenses of the firm over a period of time.

Balance sheet reports an entity's financial position. It consists of assets, liabilities and equity.

Capital budget request is for the acquisition and maintenance of fixed assets such as land, buildings, and equipment.

Hence, based on above, answer is A. Cash Flow Statement