CAQ-HM study materials
CAQ-HM study resources

CAQ-HM key terms

CAQ-HM · Get comfortable with the vocabulary.

Certificate of Need (CON)

A state regulatory approval process requiring health care providers to demonstrate community need before building facilities, adding beds, or acquiring major equipment. It aims to control costs and prevent duplication of services.

Related: Health Planning, Reimbursement
Emergency Medical Treatment and Labor Act (EMTALA)

A federal law requiring Medicare-participating hospitals to provide a medical screening examination and stabilizing treatment to anyone presenting with an emergency condition, regardless of insurance or ability to pay.

Related: Patient Dumping, Risk Management
Health Insurance Portability and Accountability Act (HIPAA)

Federal legislation establishing national standards for protecting individually identifiable health information and governing its permitted uses and disclosures by covered entities and their business associates.

Related: Protected Health Information, Business Associate Agreement
Anti-Kickback Statute

A federal criminal law prohibiting knowingly offering, paying, soliciting, or receiving remuneration to induce referrals of items or services reimbursed by federal health care programs. Violations carry severe penalties.

Related: Stark Law, Compliance Program
Stark Law (Physician Self-Referral)

A federal statute barring physicians from referring Medicare patients for designated health services to entities in which they or immediate family members hold a financial interest, unless a specific exception applies.

Related: Anti-Kickback Statute, Compliance Program
Accountable Care Organization (ACO)

A network of providers that voluntarily accepts shared responsibility for the cost and quality of care for an assigned population, sharing in savings when spending targets and quality benchmarks are met.

Related: Shared Savings, Population Health Management
Balanced Scorecard

A strategic performance framework that translates mission and vision into measurable objectives across financial, customer, internal process, and learning and growth perspectives, linking strategy to daily operations.

Related: Strategic Plan, Key Performance Indicator
Governance Board Fiduciary Duty

The legal obligation of governing board members to act in the organization's best interest with loyalty, care, and obedience, including oversight of finances, quality, and compliance.

Related: Strategic Plan, Compliance Program
Mission, Vision, and Values

Foundational statements describing an organization's purpose, its desired future state, and the guiding principles that shape decisions, priorities, and behavior throughout the enterprise.

Related: Strategic Plan, Balanced Scorecard
Strategic Plan

A documented roadmap that assesses internal and external conditions, sets priorities and goals, allocates resources, and defines measures and accountability for achieving the organization's long-term direction.

Related: SWOT Analysis, Balanced Scorecard
SWOT Analysis

A structured assessment of an organization's internal strengths and weaknesses and external opportunities and threats, used to inform strategy, prioritization, and resource allocation decisions.

Related: Strategic Plan, Environmental Scan
Case Mix Index (CMI)

A measure reflecting the average relative resource intensity and clinical complexity of a hospital's patient population, calculated from diagnosis-related group weights and used in payment and benchmarking.

Related: Diagnosis-Related Group, Reimbursement
Charity Care and Financial Assistance Policy

A hospital's written policy defining eligibility, discounts, and processes for providing free or reduced-cost care to patients unable to pay, as required for nonprofit tax-exempt status.

Related: Community Benefit, Reimbursement
Cost-to-Charge Ratio

The proportion of total costs to total gross charges, used to convert billed charges into estimated costs for financial analysis, Medicare cost reports, and payer contract evaluation.

Related: Gross Charges, Contractual Allowance
Diagnosis-Related Group (DRG)

A patient classification system grouping hospital stays by clinical condition, procedures, complications, and resource use, forming the basis for prospective payment under Medicare and many commercial payers.

Related: Case Mix Index, Prospective Payment System
Prospective Payment System (PPS)

A reimbursement method paying a predetermined fixed amount per discharge, visit, or episode based on classification categories, shifting financial risk from payers to providers.

Related: Diagnosis-Related Group, Value-Based Purchasing
Value-Based Purchasing

Payment models that adjust reimbursement based on quality, outcomes, patient experience, and cost performance rather than volume alone, rewarding providers for meeting specified performance thresholds.

Related: Pay-for-Performance, Accountable Care Organization
Lean Methodology

A continuous improvement approach focused on eliminating waste, standardizing work, and improving flow by engaging frontline staff to identify and remove non-value-adding steps in processes.

Related: Plan-Do-Study-Act, Root Cause Analysis
Plan-Do-Study-Act (PDSA)

A rapid-cycle improvement method in which a change is planned, tested on a small scale, studied for results, and acted upon through adoption, adaptation, or abandonment before broader implementation.

Related: Lean Methodology, Quality Improvement
Root Cause Analysis (RCA)

A structured retrospective method for investigating adverse events to identify underlying system failures and contributing factors, leading to corrective actions rather than individual blame.

Related: Failure Mode and Effects Analysis, Just Culture
Failure Mode and Effects Analysis (FMEA)

A prospective risk assessment technique that maps a process step by step, identifies where it could fail, rates the severity and likelihood of each failure, and prioritizes preventive actions.

Related: Root Cause Analysis, Risk Management
Electronic Health Record (EHR)

A digital longitudinal record of a patient's health information shared across care settings, supporting clinical documentation, order entry, results review, and coordination among authorized users.

Related: Health Information Exchange, Clinical Decision Support
Health Information Exchange (HIE)

The electronic sharing of patient health information among disparate organizations and systems according to agreed standards, enabling continuity of care across providers and settings.

Related: Electronic Health Record, Interoperability
Interoperability

The ability of different information systems, devices, and applications to access, exchange, integrate, and cooperatively use data in a coordinated manner across organizational boundaries.

Related: Health Information Exchange, Electronic Health Record
Clinical Decision Support (CDS)

Tools embedded in health information systems that deliver patient-specific knowledge and alerts at the point of care to support clinical decisions and promote evidence-based practice.

Related: Electronic Health Record, Meaningful Use
Credentialing and Privileging

The process of verifying a clinician's education, licensure, training, and experience, and granting permission to perform specified procedures and provide services within an organization.

Related: Peer Review, Competency Assessment
Competency Assessment

A systematic method of verifying that staff possess and maintain the knowledge, skills, and behaviors required for their roles, often through observation, testing, and documented performance review.

Related: Credentialing and Privileging, Succession Planning
Just Culture

An organizational philosophy that distinguishes human error, at-risk behavior, and reckless conduct, encouraging reporting and learning while holding individuals accountable for conscious choices.

Related: Root Cause Analysis, Patient Safety Culture
Succession Planning

A deliberate process of identifying and developing internal talent to fill key leadership and critical roles over time, reducing vacancy risk and preserving institutional knowledge.

Related: Competency Assessment, Strategic Plan
Informed Consent

The process of disclosing a proposed treatment's risks, benefits, and alternatives, confirming patient understanding, and obtaining voluntary agreement before proceeding with care.

Related: Risk Management, Patient Safety Event
Never Event

A serious, largely preventable patient safety incident, such as wrong-site surgery or retained surgical item, that should never occur and is often subject to mandatory reporting and nonpayment policies.

Related: Patient Safety Event, Sentinel Event
Sentinel Event

An unexpected occurrence involving death, serious physical or psychological injury, or the risk thereof, requiring immediate investigation and response, often with root cause analysis.

Related: Never Event, Root Cause Analysis
Patient Safety Culture

The shared beliefs, attitudes, and behaviors of an organization regarding safety, reflected in open reporting, psychological safety, teamwork, and leadership commitment to preventing harm.

Related: Just Culture, Patient Safety Event
Care Coordination

The deliberate organization of patient care activities and information sharing among participants to facilitate appropriate, timely, and efficient delivery of services across settings and providers.

Related: Patient-Centered Medical Home, Transitional Care
Patient-Centered Medical Home (PCMH)

A primary care delivery model providing accessible, comprehensive, coordinated, and continuous care with the patient and family as the central focus, supported by team-based practice and health information technology.

Related: Care Coordination, Population Health Management
Population Health Management

The systematic identification and stratification of a defined population's health needs, followed by targeted interventions and resources to improve outcomes and reduce disparities across the continuum.

Related: Accountable Care Organization, Care Coordination
Social Determinants of Health

Nonmedical conditions in which people live, work, and age, such as income, housing, education, and food security, that influence health outcomes and access to care.

Related: Population Health Management, Care Coordination