Essentials of Health Care Finance

by Cleverley, William O.

• ISBN13: 9780763724955
• ISBN10: 0763724955
• Edition: 5th
• Format: Hardcover
• Copyright: 2002-03-01
• Publisher: Jones & Bartlett

Summary

This book stands firmly in its place as the leading textbook in its coverage of health care finance. No other text so completely blends the best of current finance theory with the tools needed in day-to-day practice.

Table of Contents

Preface	xi
Acknowledgments	xiii
Chapter 1-Financial Information and the Decision-Making Process	1	(12)
Learning Objectives	1	(1)
Real-World Scenario	1	(3)
Information and Decision Making	4	(1)
Uses and Users of Financial Information	5	(2)
Financial Organization	7	(1)
Forms of Business Organization	8	(1)
Summary	9	(2)
Assignments	11	(1)
Solutions and Answers	12	(1)
Chapter 2-Financial Environment of Health Care Organizations	13	(22)
Learning Objectives	13	(1)
Real-World Scenario	13	(1)
Financial Viability	14	(1)
Sources of Operating Revenue	15	(3)
Health Care Payment Systems	18	(3)
Medicare Benefits	21	(1)
Medicare Payment: Hospital Inpatient	21	(3)
Medicare Payment: Physicians	24	(1)
Medicare Payment: Hospital Outpatient	25	(2)
Medicare Payment: Skilled Nursing Facilities	27	(1)
Medicare Payment: Home Health Agencies	28	(2)
Summary	30	(2)
Assignments	32	(1)
Solutions and Answers	33	(2)
Appendix 2-A: Sample UB-92 Form and Sample CMS-1500 Form	35	(3)
Appendix 2-B: List of Diagnosis-Related Groups (DRGs), Relative Weights, and Number of Medicare Discharges in Fiscal Year 2000	38	(11)
Chapter 3-Legal and Regulatory Environment	49
Learning Objectives	49	(1)
Real-World Scenario	49	(1)
Overview	50	(1)
Compliance and Fraud and Abuse	50	(4)
Antitrust Issues	54	(5)
Federal Enforcement Actions	59	(1)
Health Insurance Portability and Accountability Act	59	(6)
Safe Harbor/Anti-Kickback Regulations	65	(6)
Management Responsibility for Compliance	71	(1)
Summary	72	(1)
Assignments	73	(1)
Solutions and Answers	74
Chapter 4-Managed Care	15	(88)
Learning Objectives	75	(1)
Real-World Scenario	75	(1)
Health Maintenance Organizations and Managed Care Development	76	(4)
Integrated Delivery Systems	80	(4)
Paying Providers in a Managed Care Environment	84	(3)
Setting Prices in Capitated Contracts	87	(4)
Medicare and Medicaid Risk Contracts	91	(2)
Managed Care Contract Negotiation	93	(4)
Legal and Regulatory Issues	97	(1)
Summary	98	(1)
Assignments	99	(2)
Solutions and Answers	101	(2)
Chapter 5-General Principles of Accounting	103	(15)
Learning Objectives	103	(1)
Real-World Scenario	103	(1)
Financial versus Managerial Accounting	104	(1)
Principles of Accounting	105	(9)
Conventions of Accounting	114	(1)
Summary	114	(1)
Assignments	115	(1)
Solutions and Answers	116	(2)
Chapter 6-Financial Statements	118	(21)
Learning Objectives	118	(1)
Real-World Scenario	118	(1)
Organizational Structure	119	(5)
Balance Sheet	124	(5)
Statement of Revenues and Expenses	129	(3)
Statement of Cash Flows	132	(1)
Statement of Changes in Unrestricted Net Assets	132	(2)
Summary	134	(1)
Assignments	135	(2)
Solutions and Answers	137	(2)
Chapter 7-Accounting for Inflation	139	(15)
Learning Objectives	139	(1)
Real-World Scenario	139	(1)
Reporting Alternatives	140	(1)
Uses of Financial Report Information	141	(2)
Case Example: Williams Convalescent Center	143	(6)
Summary	149	(2)
Assignments	151	(2)
Solutions and Answers	153	(1)
Chapter 8-Analyzing Financial Statements	154	(27)
Learning Objectives	154	(1)
Real-World Scenario	154	(1)
What Is Required To Develop an Effective Financial Reporting System?	155	(4)
Case Example: Alpha Health Care System	159	(15)
Summary of AHCS Case Example	174	(2)
Assignments	176	(4)
Solutions and Answers	180	(1)
Chapter 9-Financial Analysis of Alternative Health Care Firms	181	(22)
Learning Objectives	181	(1)
Real-World Scenario	181	(1)
Long-Term Care Facilities and Nursing Homes	182	(6)
Medical Groups	188	(3)
Health Plans	191	(4)
Summary	195	(1)
Assignments	196	(4)
Solutions and Answers	200	(3)
Chapter 10-Strategic Financial Planning	203	(24)
Learning Objectives	203	(1)
Real-World Scenario	203	(1)
The Strategic Planning Process	204	(7)
Developing the Financial Plan	211	(9)
Integration of the Financial Plan with Management Control	220	(1)
Summary	221	(1)
Assignments	222	(1)
Solutions and Answers	223	(4)
Chapter 11-Cost Concepts and Decision Making	227	(28)
Learning Objectives	227	(1)
Real-World Scenario	227	(1)
Concepts of Cost	228	(8)
Cost Measurement	236	(6)
Break-Even Analysis	242	(7)
Summary	249	(1)
Assignments	250	(2)
Solutions and Answers	252	(3)
Chapter 12-Product Costing	255
Learning Objectives	255	(1)
Real-World Scenario	255	(2)
Activity-Based Costing	257	(1)
Relationship to Planning, Budgeting, and Control	258	(3)
The Costing Process	261	(3)
Standard Development	264	(3)
Variance Analysis	267	(2)
Relative Value Unit Costing	269	(1)
Summary	269	(2)
Assignments	271	(5)
Solutions and Answers	276
Chapter 13-The Management Control Process	211	(89)
Learning Objectives	277	(1)
Real-World Scenario	277	(1)
Essential Elements	278	(4)
The Budgeting Process	282	(9)
Zero-Base Budgeting	291	(1)
Benchmarking at the Departmental Level	291	(2)
Summary	293	(1)
Assignments	294	(3)
Solutions and Answers	297	(3)
Chapter 14-Cost Variance Analysis	300	(22)
Learning Objectives	300	(1)
Real-World Scenario	300	(1)
Cost Control	301	(1)
Investigation of Variances	302	(2)
Variance Analysis Calculations	304	(4)
Variance Analysis in Budgetary Settings	308	(3)
Variance Analysis in Managed Care Settings	311	(4)
Summary	315	(1)
Assignments	316	(3)
Solutions and Answers	319	(3)
Chapter 15-Financial Mathematics	322	(14)
Learning Objectives	322	(1)
Real-World Scenario	322	(1)
Single-Sum Problems	323	(2)
Annuity Problems	325	(4)
Summary	329	(1)
Assignments	330	(2)
Solutions and Answers	332	(4)
Chapter 16-Capital Project Analysis	336	(24)
Learning Objectives	336	(1)
Real-World Scenario	336	(2)
Participants in the Analytical Process	338	(4)
Classifcation of Capital Expenditures
Capital Project Decision-Making Process	342	(3)
Justification of Capital Expenditures	345	(6)
Discounted Cash Flow Methods	351	(3)
Selection of the Discount Rate	354	(1)
Valuation	355	(1)
Summary	355	(1)
Assignments	356	(2)
Solutions and Answers	358	(2)
Chapter 17-Consolidations and Mergers	360	(20)
Learning Objectives	360	(1)
Real-World Scenario	360	(1)
Defining the Terms	361	(1)
Merger and Acquisition Activity	362	(2)
Overview of Theories of Merger and Acquisition Activity	364	(1)
Factors Affecting Merger and Acquisition Activity	365	(1)
Why Do Mergers Succeed or Fail?	366	(1)
Valuations	367	(6)
Accounting for Business Combinations	373	(1)
Antitrust Considerations	373	(1)
Summary	374	(1)
Assignments	375	(2)
Solutions and Answers	377	(3)
Chapter 18-Capital Formation	380	(27)
Learning Objectives	380	(1)
Real-World Scenario	380	(1)
Equity Financing	381	(4)
Long-Term Debt Financing	385	(9)
Alternative Debt Financing
Recent Developments	394	(2)
Early Retirement of Debt	396	(2)
Summary	398	(2)
Assignments	400	(3)
Solutions and Answers	403	(4)
Chapter 19-Working Capital and Cash Management	407	(15)
Learning Objectives	407	(1)
Real-World Scenario	407	(2)
Cash and Investment Management Structure	409	(2)
Management of Working Capital	411	(4)
Short-Term Bank Financing	415	(1)
Investment of Cash Surpluses	416	(2)
Summary	418	(1)
Assignments	419	(1)
Solutions and Answers	420	(2)
Chapter 20-Developing the Cash Budget	422	(11)
Learning Objectives
Real-World Scenario	422	(1)
Determining Required Cash and Investment Reserves	423	(1)
Sources and Uses of Cash	424	(1)
Preparing the Cash Budget	425	(3)
Summary	428	(2)
Assignments	430	(1)
Solutions and Answers	431	(2)
Glossary	433	(18)
Common Health Care Financial Management Acronyms	451	(8)
Index	459