Glossary

Author: Glossary

  • Carrier insurance

    An organization which handles the claims for beneficiaries on behalf of certain kinds of health insurance. A carrier may be an insurance company, a prepayment plan, or a government agency. In general, a carrier is at some risk. On the other hand, an intermediary, which is an agency in the Medicare system which has been…

  • Care

    The treatment and other services provided to a patient. Care is often described according to the needs of the patient: for example, neonatal care describes the care given newborns; respiratory care describes the care provided for patients with respiratory (breathing) difficulties. Care may also be described according to the “level” (intensity) or urgency of care,…

  • Capital structure

    The permanent long-term financing of an organization or institution represented by long-term debt, preferred stock, and net worth. Capital structure is distinguished from financial structure, which includes short-term debt plus all reserve accounts.  

  • Capital rationing

    A situation where a constraint is placed on the total size of capital investment during a particular period.  

  • Capital pass-through

    Costs, such as depreciation and interest, which are “passed through/’ In other words, these costs are not included in the Diagnosis Related Group (DRG) prices, but are paid directly to the hospital in the prospective payment system (PPS).  

  • Capital financing

    Obtaining funds for building or renovation, that is, for additions to capital, as opposed to the financing of operations. For the most part, operations are financed by fees for services rendered.  

  • Capital expenditure

    An expenditure (chargeable to an asset account) made to acquire an asset which has an estimated life in excess of one year and is not intended for sale in the ordinary course of business. It is also known as a capital expense. Expenses for operation (including maintenance) of the asset are not capital expenditures, but…

  • Capital budgeting

    The process of planning expenditures on capital items, that is, assets whose useful life is expected to extend beyond one year: property, plant, and equipment.  

  • Canadian-style system

    This phrase is often used to describe a single-payer, nationalized or socialized health care system. Actually, Canada has a system consisting of national health insurance and twelve separate single-payer systems—the ten provinces plus two territories—each with a global budget. Most physicians are self-employed and reimbursed under a negotiated fee schedule. Patients choose their own physicians.…

  • Cafeteria plan

    Also referred to as a “flexible benefit plan”, it allows participating employees to choose from a cafeteria-type menu of different health care coverage and provider options. If the cafeteria plan qualifies under Section 125 of the Internal Revenue Code (IRC), employees may also choose between non-taxable benefits and taxable cash. The advantages of one of…