Accounting Fundamentals for Health Care Management

by Finkler, Steven A.; Ward, David M.

• ISBN13: 9780763726751
• ISBN10: 0763726753
• Edition: 1st
• Format: Paperback
• Copyright: 2006-03-03
• Publisher: Jones & Bartlett

Summary

Accounting Fundamentals for Health Care Management is the ideal text for an introductory course in financial management in both undergraduate and graduate programs. As most courses focus on basic accounting, this is the first book that focuses on basic accounting in health care management. This book is an essential for anyone who manages a department and a budget.

Table of Contents

Preface	ix
CHAPTER 1 Introduction to Health Care Accounting and Financial Management	1	(6)
Do I Really Need to Understand Accounting to Be Effective in My Health Care Organization?	1	(1)
What Is Financial Management?	1	(1)
What Are the Goals of Financial Management Within Health Care Organizations?	2	(4)
How Does Accounting Fit into Financial Management?	6	(1)
Key Concepts	6	(1)
Test Your Knowledge	6	(1)
CHAPTER 2 The Financial Environment of Health Care Organizations	7	(4)
How Do We Get Paid?	7	(1)
Why Do Different Patients Pay Different Amounts?	8	(1)
How Does All This Impact Financial Accounting?	9	(1)
Key Concepts	9	(1)
Test Your Knowledge	9	(2)
CHAPTER 3 Accounting Concepts	11	(10)
Basics	11	(1)
Assets	12	(1)
Liabilities	13	(1)
Owners' Equity/Net Assets	13	(1)
The Accounting Equation	14	(1)
Fund Accounting	14	(1)
Generally Accepted Accounting Principles	15	(4)
Key Concepts	19	(1)
Test Your Knowledge	20	(1)
CHAPTER 4 Introduction to the Key Financial Statements	21	(6)
The Balance Sheet—How Much Do We Have and What Do We Owe?	21	(2)
The Income or Operating Statement—How Much Did We Make?	23	(1)
The Statement of Cash Flows—Where Did All Our Cash Go?	24	(1)
Notes to Financial Statements—What Do the Financial Statements Really Mean?	25	(1)
Key Concepts	25	(1)
Test Your Knowledge	25	(2)
CHAPTER 5 Valuation of Assets and Equities	27	(8)
Asset Valuation—How Does That Old Building Show Up on the Balance Sheet?	27	(4)
Valuation of Liabilities—What Do We Really Owe?	31	(1)
Valuation of Net Assets and Owner's Equity—Is It Really Just What's Left Over?	32	(1)
Key Concepts	33	(1)
Test Your Knowledge	33	(2)
CHAPTER 6 Recording Financial Information	35	(12)
Double Entry and the Accounting Equation—The Golden Rule of Accounting	35	(1)
Debits and Credits: The Accountant's Secret	36	(2)
Recording the Financial Events	38	(6)
T-Accounts	44	(1)
Chart of Accounts	45	(1)
Key Concepts	46	(1)
Test Your Knowledge	46	(1)
CHAPTER 7 Reporting Financial Information: A Closer Look at the Financial Statements	47	(10)
Ledgers	47	(1)
Healthy Hospital's Financial Statements	48	(8)
Key Concepts	56	(1)
Test Your Knowledge	56	(1)
CHAPTER 8 The Role of the Outside Auditor	57	(8)
The Audit	58	(4)
Next Steps	62	(1)
Key Concepts	63	(1)
Test Your Knowledge	63	(2)
CHAPTER 9 Depreciation: Having Your Cake and Eating it Too!	65	(10)
Amortization	65	(1)
Asset Valuation for Depreciation	66	(3)
Straight-Line Versus Accelerated Depreciation	69	(1)
Comparison of the Depreciation Methods	69	(2)
Modified Accelerated Cost Recovery System	71	(2)
Depreciation and Deferred Taxes: Accounting Magic	73	(1)
Key Concepts	74	(1)
Test Your Knowledge	74	(1)
CHAPTER 10 Inventory Costing: The Accountant's World of Make-Believe	75	(8)
The Inventory Equation	75	(1)
Periodic Versus Perpetual Inventory Methods	75	(2)
The Problem of Inflation	77	(1)
Cost-Flow Assumptions	78	(3)
Key Concepts	81	(1)
Test Your Knowledge	82	(1)
CHAPTER 11 An Even Closer Look at Financial Statements	83	(14)
The Balance Sheet	83	(6)
Statement of Operations	89	(3)
Statement of Cash Flows	92	(3)
The Notes to the Financial Statements	95	(1)
Key Concepts	96	(1)
Test Your Knowledge	96	(1)
CHAPTER 12 Notes to the Financial Statements: The Inside Story	97	(6)
Significant Accounting Policies	97	(2)
Other Notes	99	(1)
Summary	100	(1)
Key Concepts	101	(1)
Test Your Knowledge	101	(2)
CHAPTER 13 Ratio Analysis: How Do We Compare to Other Health Care Organizations?	103	(18)
Benchmarks for Comparison	103	(2)
Common Size Ratios	105	(5)
Liquidity Ratios	110	(2)
Efficiency Ratios	112	(3)
Solvency Ratios	115	(1)
Profitability Ratios	116	(1)
Return On Investment (ROI) Ratios	117	(3)
Key Concepts	120	(1)
Test Your Knowledge	120	(1)
CHAPTER 14 Working Capital Management and Banking Relationships	121	(16)
Working Capital Management	121	(1)
Short-Term Resources	121	(8)
Managing the Revenue Cycle	129	(1)
Short-Term Obligations	130	(4)
Banking Relationships	134	(1)
Key Concepts	135	(1)
Test Your Knowledge	136	(1)
CHAPTER 15 Investment Analysis: What Should We Do Next?	137	(16)
Investment Opportunities	137	(1)
Data Generation	138	(1)
The Payback Method	138	(2)
Time Value of Money	140	(7)
The Net Present Value Method	147	(3)
Internal Rate of Return Method	150	(1)
Project Ranking	150	(1)
Summary	151	(1)
Key Concepts	151	(1)
Test Your Knowledge	152	(1)
CHAPTER 16 Capital Structure: Long-Term Debt and Equity Financing	153	(10)
Charitable Giving	153	(1)
Common Stock	154	(1)
Debt	154	(1)
Preferred Stock	155	(1)
Cost of Capital	155	(1)
Other Elements of Capital Structure	156	(2)
Dividends	158	(1)
Getting Capital	159	(2)
Key Concepts	161	(1)
Test Your Knowledge	161	(2)
CHAPTER 17 Case Study: Happy Hospital	163	(16)
Recovering from New Year's Eve: Is it Really the Start of Another Year?	163	(1)
What Should We Do with All That Money?	163	(6)
What a Busy Year! Tracking Financial Events	169	(1)
Time to Close the Books	170	(2)
Putting Together the End-of-Year Financial Statements	172	(1)
How Did We Do? Using Ratio Analysis	172	(7)
Index	179