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Managing Financial Budgets Health care financial management is complex and an effective health care administrator must understand what makes up the foundation to financial operations. This includes: health insurance (private and social) and reimbursements, private vs. not-for profit entities, costs and expenditures, capital, materials management, and budgeting. 1. Outline and discuss the major categories of reimbursements and costs in a health care organization. How do they influence each other? 2. In addition, how do expenses and revenues affect the specific types of budgets outlined?