Tags related to this set

Terms And Definitions

Acid Test Ratio
Gross Profit Margin

Terms in this set (24)

gross revenue
-the total billable revenue performed during the monthly time period
-does not include any deductions or changes from the fee schedule
FICA
the wage tax of social security benefits paid by the company on behalf of the worker
gross profit
the total gross billable revenue after expenses are removed from Gross Revenue
standard deductions
-different for every clinic, and are usually determined by the accounting office or the
CFO
-include predetermined contract payments with third party payers, fee schedules, and
percentages of cost based reimbursement through the government
-can run anywhere from 20 to 45% of total billable revenue depending on the facility
type
line item expense
the header used for the expense type
salary
the total payable wages (line 4 on your W-2) excluding any bonus or benefit total
accrued expenses
-associated with current expenses that are yet to be paid
-typically they are billed at a later date
benefits
-may run up to 20% of total salary
-many companies do not include this within their figures
-can include vacation pay accrual, medical benefits or leave payments
rental
typically the space rental if it is not on site at a hospital
electricity
the total electricity costs incurred at the site
contract
costs may be salary, non-budgeted maintenance costs, or any other outside costs for
repairs of professional use
maintenance
include maintenance contracts or any cleaning service contracts
linen
-includes linen costs if done outside the clinic
-some clinics include linen costs if they do it themselves as a percentage of each piece
utilities
usually includes water, gas, and trash removal
equipment
-where most equipment that is non-capitalized is recorded
-capital equipment may be 500-1000 dollars and over
miscellaneous
any other extraneous expenses are recorded here
net profit
-the total after the removal of expenses and standard deductions
-an accurate reflection of the true financial status of the clinic
EBDIT
-the total revenue after deductions and adjustments within a clinic
-an early definition of the actual cash flow within an organization
-defined as earnings before depreciation, interest and taxes
net revenue
-the amount charged after deductions are removed
-closer to the true amount of revenue that is received for the clinic
gross margin
-the difference between the Gross Revenue and the expenses
-a higher gross profit margin is better
operating margin
the total revenue minus the total expenses divided by the total revenue
acid test ratio
-the cash position of a business is was voted the most important financial aspect of a
business by most Fortune 500 companies
-defined by taking the total cash plus the marketable securities (investments) divided by
the current liabilities
accounts payable
the amount of money required for payment of services or products that have been
accrued within the accounting line item
accounts receivable
the amount of money that is to be obtained through payment of goods or services
rendered that are accrued within the accounting line item