Author: Glossary

The practice of discharge of a patient from the hospital and readmission of the same patient for what is really a single episode of care in order to be able to charge for two or more hospitalizations. Only the last discharge is “real” from a medical standpoint—except for the financial benefit of being paid for…

Amendments, enacted in 1984, to the federal Child Abuse Prevention and Treatment Act concerning medical treatment decisions for seriously ill newborns. The amendments added the term “withholding of medically indicated treatment” to the statutory definition of child neglect; this is now often referred to as “medical neglect.” The law was passed in response to the…

The person in charge of the internal operation of the organization, for example, a hospital. The chief executive officer (CEO), while responsible for the internal operation of the organization, also has external responsibilities with the governing body, with the community, with other institutions, and so on. Often a single individual is made responsible for “inside”…

The physician designated by the governing body, usually after nomination by the medical staff, to be responsible for management of the medical staff and for carrying out policy promulgated by the board. The term “chief of staff or “president of the medical staff” usually refers to an unpaid person, while a paid physician with either…

A medical staff officer responsible for the management of a clinical department, such as internal medicine or surgery.  

The corporate treasurer. Sometimes the term is also applied to the controller of the organization (the person in charge of the ongoing financial administration, including billing, accounting, budget management, and the like).  

The person appointed by the governing body to direct the overall management of the hospital. The CEO is the “board in residence.”  

A practice by insurers of selling policies only to people who do not need medical care; then dropping them once they do. Any Medicare provider paid under a risk (capitated) plan, for instance, has an incentive to pursue this form of favorable selection. Some efforts to do this are illegal (such as asking Medicare HMO…

A reduction of a charge (a discount) to a patient because that patient is indigent or medically indigent.  

Section 501 of the Internal Revenue Code provides that one test of the qualification of an organization for tax-exemption under that Section of the code is that it serve a “charitable purpose.” The term is defined adminsitratively by the Internal Revenue Service, and current regulations should be consulted.