FACHE key terms

A group of providers that voluntarily accepts shared responsibility for the cost and quality of care for a defined patient population, with shared savings or losses tied to performance against spending benchmarks.

A strategic performance framework that tracks measures across financial, customer, internal process, and learning and growth perspectives so leaders can monitor execution beyond financial results alone.

The practice of comparing an organization's performance, processes, or outcomes against internal targets, peer organizations, or recognized best practices to identify gaps and improvement opportunities.

A single payment covering a defined episode of care, such as a joint replacement, shared among participating providers, which shifts financial risk for cost overruns and complications to the care team.

A plan for major, long-lived investments such as buildings, imaging equipment, or information systems, including the projected costs, funding sources, and expected financial return over multiple years.

A structured approach to moving individuals and teams from current practices to a desired future state, addressing communication, resistance, training, and reinforcement so that improvements persist after implementation.

Coordination of care across physicians and settings through shared protocols, information systems, and performance measurement, intended to improve quality and enable collective contracting with payers.

A situation in which a person's private interests or relationships could improperly influence, or appear to influence, decisions made in their professional or organizational role.

The full range of health services a patient may need over time, from prevention and primary care through acute treatment, rehabilitation, and long-term or end-of-life support.

An organized set of policies, training, monitoring, and reporting channels designed to prevent, detect, and correct violations of law, regulation, or payer requirements, overseen by a designated compliance officer.

The practice of offsetting shortfalls from underfunded payers, such as Medicare or Medicaid, by charging private insurers and self-pay patients higher rates for the same services.

The ability of staff and systems to recognize and respond respectfully to patients' diverse beliefs, languages, values, and health practices in order to deliver effective, equitable care.

A federal law requiring hospitals with emergency departments to provide a medical screening examination and stabilizing treatment to anyone who presents, regardless of insurance status or ability to pay.

The capacity to recognize, understand, and regulate one's own emotions and to perceive and respond to others' emotions, supporting effective teamwork, coaching, and conflict resolution.

The legal and ethical obligation of leaders and board members to act in the organization's best interest, exercising loyalty and reasonable care rather than pursuing personal gain.

The body ultimately accountable for an organization's mission, strategy, quality oversight, and financial integrity, typically delegating day-to-day operations to the chief executive while retaining fiduciary responsibility.

The degree to which individuals can obtain, process, and understand basic health information and services needed to make appropriate health decisions, which strongly influences adherence and outcomes.

A federal law establishing national standards for protecting the privacy and security of individually identifiable health information and defining permitted uses and disclosures by covered entities and their business associates.

An organizational climate in which staff are encouraged to report errors and near misses without fear of blame, while clear lines distinguish human error, at-risk behavior, and reckless conduct requiring accountability.

A quantifiable measure selected to track progress toward a specific strategic or operational objective, ideally few in number, clearly defined, and tied to action when results deviate from target.

A process-improvement approach focused on eliminating waste, reducing variation, and improving flow from the customer's perspective, often applied to patient throughput, supply management, and staffing workflows.

A system in which insurers contract with selected providers and use utilization review, networks, and financial incentives to control costs and coordinate care for enrolled members.

A concise declaration of an organization's purpose, the population it serves, and the core reason it exists, which guides priorities and decision-making across the enterprise.

A detailed projection of expected revenues and expenses for routine operations over a defined period, usually a fiscal year, used to allocate resources and monitor financial performance.

The proportional distribution of an organization's revenue among payment sources such as Medicare, Medicaid, commercial insurers, and self-pay, which shapes margins and financial risk.

An iterative improvement method in which a change is planned, tested on a small scale, studied for results, and then adopted, adapted, or abandoned before the next cycle.

A systematic approach to identifying and addressing the health needs of a defined group, using data, risk stratification, and coordinated interventions to improve outcomes and control total cost of care.

A ratio comparing the financial gain from an investment to its cost, used to rank competing capital projects and justify expenditures to the board and finance committee.

The end-to-end process of capturing, billing, and collecting payment for services, from scheduling and registration through coding, claims submission, denial management, and final payment posting.

A structured, team-based investigation that moves beyond the immediate cause of an adverse event to identify underlying system failures, then recommends changes to prevent recurrence.

A leadership philosophy in which the leader's primary aim is to serve staff, patients, and community, fostering growth, trust, and shared purpose rather than exercising authority for personal advancement.

A process of identifying the individuals and groups affected by or able to influence a decision, assessing their interests and influence, and planning engagement accordingly.

A document translating mission and vision into prioritized goals, measurable objectives, and resource commitments over a multi-year horizon, with mechanisms for monitoring progress and adjusting course.

An assessment of an organization's internal strengths and weaknesses alongside external opportunities and threats, commonly used to frame strategic choices and competitive positioning.

A communication technique in which the clinician asks the patient to restate information or demonstrate a task in their own words, confirming understanding rather than assuming it.

A payment approach that adjusts reimbursement up or down based on measured quality, patient experience, safety, and efficiency, rather than paying solely for the volume of services delivered.

Comparison of actual financial or operational results against budgeted or expected figures, identifying the size and causes of differences so that leaders can take corrective action.

An aspirational description of the future state an organization seeks to create, intended to inspire and align stakeholders and to complement the more concrete mission statement.