Essential Skills for CV Program Management-Practice Finance Video

Video Transcription

Video Summary

In the "Essential Skills for CV Program Management" finance module, Joel Sauer, Executive VP for MedAxiom Consulting, delves into key financial statements crucial for physician practice enterprises: the balance sheet, the profit and loss (P&L) statement, and cash flow statement. The balance sheet snapshots assets, liabilities, and equity, highlighting how physician enterprises often aim to break even to avoid double taxation. The P&L shows operational performance by comparing revenue and expenses, while cash flow is pivotal for ensuring operational liquidity. Sauer explains accounting nuances like cash vs. accrual accounting and clarifies revenue understanding through gross vs. net concepts, highlighting the importance of cash flow management. <br /><br />He also underscores compliance considerations focusing on Stark Law, anti-kickback statutes, and the False Claims Act, advising engagement with legal professionals for practice administrators to steer clear of violations. Understanding payment sources is vital, with Medicare, Medicaid, commercial insurance, and direct patient payments being primary. Additionally, Sauer touches on payer contracting strategies and emphasizes coding accuracy and fair market considerations in financial and operational decision-making within healthcare organizations.

Keywords

financial statements

balance sheet

profit and loss

cash flow

Stark Law

payer contracting

coding accuracy

healthcare finance