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Financial Terminology

Faun Brown

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5.Common Area Maintenance. Charges from leasor to maintain property.
9.Monies added for anticipated future expense. Adjustments made when actuals incur
12.The % of employee turnover in a given facility over a specified period of time.
16.Various costs including freight, computer costs, office supplies, telephone expense, transportation, lodging, recruiting, loss on asset disposal, etc.
21.Expenses including-cleaning services, disposal services, security services, utilities (electrical, fuel, water), purchased linen, facility R&Ms
23.Cost Per Treatment is the expense incurred for each treatment.
25.Estimate of the current period revenue that will later prove to be uncollectible.
26.Direct Patient Care (DPC) are RNs, LPN, PCTs, Dialysis Assistants.
27.Hemo equivalent = # of days dialyzed/7 (# of days in a week) and then multiplied by 3 (avg in-center txts per week)
30.Cost of drugs such as EPO, Hectorol, Zemplar, etc.
32.Profit and Loss Reports - financial standing of facility.
33.Indirect Personnel Costs are those who indirectly care for the patients like Clinical Managers, Facility Assistants, Educators, Dietitians, Social Workers, Case Aides, Technicians.
34.Adjustments made to the cost of dialysis service/ancillary based on contracts with insurance carriers.
36.The process of spreading the cost of an intangible asset over time.
38.The "extra" amount in the vial (EPO, Zemplar) that the manufacturer provides.
40.Any expense related property such as real estate tax, personal property tax, property insurance.
45.The process of allocating the cost of an asset to expense over its useful life.
47.Income realized such as gain on asset disposal, management fee for JVs, etc.
49.Monetary reimbursement for performing dialysis treatments.
51.Financial database.
52.The days it takes to receive payment from insurance carriers for services rendered.
1.Charges that are not directly related to dialysis services such as the Quality, Education, Human Resources, Managed Care, Finance Center, Business Development, etc.
2.Margin is the difference between revenue and expense. It's the profit or what's left over after all expenses.
3.A look at a facility's composition of patient insurance carriers - i.e. Medicare, Medicaid, Commercial, Self-pay, VA, etc.
4.Any item over $300 with a one-year useful life or a combination of items totaling over $500 with a one-year useful life.
6.General and Administrative Expenses are expenses incurred that are not a direct expense to dialysis. See Overhead.
7.Margin (difference between revenue and expense) divided by revenue. It's the percentage of profit to revenue.
8.Adjustments made to revenue for incorrect billings for wrong rates or incorrect insurance carriers.
10.Costs of salaries and employee benefits.
11.The amount listed on the PI-17 for medical supplies and any adjustments made that create the accounting entry to "book" or relieve inventory.
13.(AMI only)Reports in InfoCentral that provide detail for TAP by facility/associate.
14.Associate benefits like insurance, 401K, pension, vacation, tuition, worker's compensation, unemployment, etc.
15.Zemplar overfill or the manufacturer's extra amount of Zemplar given in a vial. Target greater than 22%. See Overfill.
17.The charge to each facility for the Medical Director's fee.
18.Drugs that are not reimbursable.
19.Chronic Kidney Disease
20.EPO overfill or the capturing of the 'extra" EPO in the vial provided by the manufacturer. Target greater than 10%. See Overfill.
24.Full Time Equivalent associate is one who works 40 hours per week.
28.Direct patient supplies needed for in-center (I/C) treatments such as dialyzers, bloodlines, misc. dialysis supplies, concentrates.
29.Monetary reimbursement for administration of reimbursable drugs.
31.Write off for services provided to patients who do not have Medicare as their primary insurance and qualify as indigent.
35.Medical Equipment involved in treatment such as dialysis chairs, dialysis machines, concentrators, crit-lines, etc.
37.The % of growth in patients or treatments over a specified period of time. Does not include acquisitions or mergers.
39.Repairs and maintenance.
41.Total Area Productivity - total time in hours it takes to do a dialysis treatments. Formula = Total Hours/Total Treatments.
42.Staff hired on a temporary basis through an agency.
43.Types of dialysis treatments provided. In-center, CAPD, CCPD, Home Hemo, Acute
44.(Proton only)Labor distribution reports that show hours charged to a facility by associate name. (for Proton units only)
46.Earnings Before Interest and Taxes is Revenue minus Expenses or profit.
48.Physical Inventory PI-17. The number 17 because there used to be a total of 17 physical inventories required annually. This report calculates the in-center medical supplies cost per treatment.

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