Glossary of Healthcare Terms

Direct reimbursement is a dental fee-for-service self-funded group plan that reimburses patients based on the amount spent on dental care, as opposed to the type of treatment the patient receives. "Instead of paying monthly insur¬ance premiums, even for employees who don't use the dentist, employers pay a percentage of actual treatments received."

Medical services that are driven solely by consumer demand; because almost all of these types of procedures are not covered or reimbursed by either private or governmental insurance, their demand level is more affected by cultural acceptance and discretionary income levels.

The percentage or dollar amount below net asset value at which an entity is sold.

An amount or percentage deducted from the pro rata share of value of 100 percent of an equity interest in a business to reflect the absence of some or all of the powers of control.

The reduction in price demanded by investors as compensation for the perceived difficulty in converting an asset into cash or its equivalents, relative to a similar, more easily converted asset.

A rate of return used to convert a future monetary sum into present value.

An analytical technique that determines the number of discrete periods “until the sum of the discounted cash flow is equal to the initial investment.”

The reduction in value caused by uncertainty.

A subset of clinical quality indicators used to classify patients with regard to either a specific diagnosis or procedure, for example, the number of patients undergoing an elective surgery.

Disproportionate share hospital (DSH) payments are a form of additional reimbursement under Medicaid for hospitals that care for a large number of Medicaid and uninsured patients. DSH payments are allotments from the federal government which augment basic Medicaid reimbursement, and under federal law, states are required to supplement disproportionate share hospitals in order to receive this additional Medicaid funding.