Part 441 Definitions

A pension reserve, a reserve for bonuses or for the retirement of preferred stock, or other prospective future liability against which certain assets have been accumulated and set aside or earmarked.

Funds held and administered, at the direction of the donor, by an outside trustee for the benefit of an institution or institutions.

Generally accepted accounting principles.

The fixed-asset valuation account resulting from depreciation provisions; also known as reserve for depreciation, accrued depreciation, and allowance(s) for depreciation.

The net result of a concluded transaction or of an operating period following the application of generally accepted accounting principles.

See operating fund.

The journal in which are recorded transactions not provided for in specialized journals.

A ledger containing accounts in which all the transactions of a business enterprise or other accounting unit are classified either in detail or in summary form.

Given authoritative recognition; said of accounting principles or audit standards, and the pronouncements concerning them, particularly, in recent years, those of the American Institute of Certified Public Accountants and the Financial Accounting Standards Board.

Any voluntary conveyance of assets gratuitously made and not in consideration of any kind of exchange.

The excess of the price paid for a business as a whole over the book value or over the computed or agreed value of all tangible net assets purchased. Normally, goodwill thus acquired is the only type appearing on books of account and in financial statements.

The policy-making board of the hospital. Some of the responsibilities usually attributed to the governing board may be assumed by appropriate committees.

Undiminished by related deductions, except corrections; applied to sales, revenues, income, expense, and the like.

The total charges at the hospital's full established rates for services rendered and goods sold (including patient-related and non-patient-related).

Hospital-based and nonhospital-based physicians, other than interns and residents who are voting members of and can hold office in the medical staff organization of the hospital.

The total floor areas of the plant, including common areas (hallways, stairways, elevators, lobbies, closets, etc.).

Any licensed facility, place or building which is organized, maintained and operated for the diagnosis, care and treatment of human illness, physical or mental, including convalescence and rehabilitation and including care during and after pregnancy, or for any one or more of the…

Beds in facilities providing institutional care and services with nursing services available, but not continuous. Refer to the definition of residential care in section 444.18(d)(7) of this Article.

Care, other than medical, that is performed by qualified personnel and pertains to protective, preventive, personal and social services.

The amount of cash or cash equivalent given in exchange for properties or services at the time of acquisition (see basis of valuation in section 442.10 of this Article).

See clearing account.

The office of the controlling organization. This office generally incurs costs and provides services to or on behalf of the individual health facility.

An establishment that provides, through an organized medical or professional staff, permanent facilities that include inpatient beds, medical services and continuous nursing services, diagnosis and treatment for patients.

A physician who spends the predominant part of his practice time within one or more hospitals instead of in an office setting, or providing services to one or more hospitals or their patients. Such physicians have either a special financial arrangement with the hospital (salary o…

An individual who receives lodging in the hospital but who is not an inpatient. In most hospitals, a small number of persons who are not patients and who are not hospital personnel or physicians may, nevertheless, be occasionally provided with room and board, often in “areas of t…

A basis compatible with principles followed by actuaries: said of computations involving compound interest, retirement and mortality estimates, and the like.

An individual receiving, in person or otherwise (telemetry), hospital-based or coordinated medical services for which the hospital is responsible.

A fixed cash fund or petty cash fund in the form of currency, a bank checking account, or both, maintained for expenditures that must be made in cash, and, from time to time, restored to its original amount by a transfer from general cash of a sum equal to the aggregate of disbur…

(a) Betterment. (b) The clearing, draining, grading, or other addition to the worth of a tract of land; any cost of developing real estate, whether paid for directly or through special assessment taxes. (c) A betterment of leased property or plant.

The recognition of income, the usual test being the passage of title to or delivery of goods, or the performance of services.

An accounting statement which reflects the financial results of a hospital during an accounting period. The data for this statement are accumulated in the revenue and expense accounts.

(a) An obligation not yet incurred but for which responsibility may have to be assumed in the future; as, the possible liability from the premature settlement of a long-term contract. (b) A debt of another, as the result of which an obligation to pay may develop; a contingent lia…

A patient who is provided with room, board, and continuous general nursing service in an area of the hospital where patients stay overnight.

The formal acceptance by a health facility of a patient who is to be provided with room, board, and continuous nursing service in an area of the health facility where patients generally stay at least overnight.

A capital asset having no physical existence, its value being limited by the rights and anticipative benefits that possession confers upon the owner.

Services provided in a routine patient care unit to patients which require extraordinary observation and care on a concentrated exhaustive and continuous basis.

Inpatient general routine care provided to patients who are in an acute phase of illness, but not to the degree which requires the concentrated and continuous observation and care provided in the intensive care units of an institution.

The transfer of money or other asset or of a liability from one fund to another.

A graduate of a medical/osteopathic/dental school serving a first-year period of graduate clinical training.

(a) The general methodology by which management is carried on within an organization; also, any of the numerous devices for supervising and directing an operation or operations generally. (b) Internal control, a management function, is a basic factor operating in one form or anot…

The control of merchandise, materials, goods in process, finished goods, and supplies on hand by accounting and physical methods. An accounting control is effected by means of a stock or stores ledger, mechanical storage records, or a ledger account in which the quantities or amo…

The determination of the cost or the portion of cost assignable to on-hand raw materials, merchandise, merchandise held for resale, and supplies based on any generally accepted method consistently applied.

(a) The amount of capital contributed to a business by its owners; capital. (b) The amount so contributed, plus retained earnings (or less accumulated losses) and appropriated surplus.

A hospital owned by a person, an unincorporated group of people, or a corporation. Operation of this type of hospital is usually intended to return a monetary gain to the investors; but may include instances where individuals own and operate hospitals primarily for community bene…

A document showing the character, quantity, price, terms, nature of delivery, and other particulars of goods sold or of services rendered.

Cost incurred by a buyer and reflected on an invoice which, unless otherwise specified, is net after deducting trade discounts.

A trust that cannot be set aside by its creator.