Formula in a defined benefit retirement plan in which the retirement benefit amount is obtained based on the participant’s average wages during a specific period (usually 3 to 5 years before retirement). Also known as final earnings benefit formula .

In temporary disability workers’ compensation cases, the last report submitted by a physician to the insurance company stating the patient is able to return to work. In permanent disability workers’ compensation cases, the last report indicating permanent disability of the patient. Also called Doctor’s Final (or Monthly) Report and Bill .

Official release of a requirement or guideline created by the Secretary of Health and Human Services (HHS) to meet a specific law. When a final rule is officially released, entities may begin to use the rule. After a period of implementation, then a compliance deadline is mandated.

Individual financial account that has service fees, payments, adjustments, and balances posted. Also called account, financial record , ledger , ledger card , or patient account ledger .

Designated organization in the private sector for establishing standards of financial accounting and reporting that govern the preparation of financial reports. Founded in 1973, FASB is part of a structure that is independent of all other business and professional organizations. Before the present structure was created, financial accounting and reporting standards were established first by the Committee on Accounting Procedure of the American Institute of Certified Public Accountants (1936-1959) and then by the Accounting Principles Board, also a part of the AICPA (1959-1973). Pronouncements of those predecessor bodies remain in force unless amended or superseded by the FASB. The Board is officially recognized as authoritative by the Securities and Exchange Commission (Financial Reporting Release No. 1, Section 101 and reaffirmed in its April 2003 Policy Statement) and the American Institute of Certified Public Accountants (Rule 203, Rules of Professional Conduct, as amended May 1973 and May 1979). Such standards are essential to the efficient functioning of the economy because investors, creditors, auditors, and others rely on credible, transparent, and comparable financial information.
*****
An independent body, funded by accounting firms, that sets standards that must be followed when preparing financial statements and reports.

Individual’s income or ability to pay a debt.

Information about the financial status of managed care entities (e.g., medical loss ratio).

Reduction of the balance due on a patient’s financial account because of his or her financial status. A hardship waiver can vary from 25% to 100% of the bill and must be documented before a decision is made in these cases. Current guidelines on poverty income are used to determine eligibility for uncompensated services under the Hill-Burton program, the Community Services Block Grant program, and the Head Start program. Physicians may choose to follow these guidelines to direct patients to government-sponsored programs, obtain public assistance, and determine who is eligible for a hardship waiver. The physician may elect to collect the third-party payer’s portion of the bill and adjust off the patient portion of the charge. A written policy about what qualifies a patient for a financial hardship discount must be created because it may be construed as discriminatory if not given to other patients consistently.

Government agency or privately owned entity that collects funds from the public to put in stocks, bonds, money market accounts, bank deposits, or loans. There are depository institutions (banks, savings and loan associations, savings banks, and credit unions) and nondepository institutions (insurance companies and pension plans).