The Financial Management of Hospitals and Healthcare Organizations

by Nowicki, Michael

• ISBN13: 9781567932775
• ISBN10: 1567932770
• Edition: 4th
• Format: Hardcover
• Copyright: 2007-11-30
• Publisher: Foundation of the Amer College

Summary

This book introduces nonfinancial managers to the fundamental concepts and skills necessary to cost-effectively manage operations.

Author Biography

Michael Nowicki is professor and director of the School of Health Administration at Texas State University.

Table of Contents

Foreword	p. xv
Preface	p. xvii
Acknowledgments	p. xix
Financial Management
Financial Management in Context	p. 3
Learning Objectives	p. 3
Introduction	p. 3
Purpose of Healthcare Financial Management	p. 4
Major Objectives of Healthcare Financial Management	p. 7
Quality Assessment and Healthcare Financial Management	p. 9
Effects of Quality on Profitability	p. 13
Organizational Ethics and Healthcare Financial Management	p. 14
Value of Healthcare Financial Management	p. 15
Effect of Financial Management on the Changing Face of Healthcare	p. 16
Financial Accounting Outline	p. 17
Economics Outline	p. 20
Statistics Outline	p. 25
Organization of Financial Management	p. 31
Learning Objectives	p. 31
Introduction	p. 31
Governing Body	p. 32
Alternative Corporate Structures	p. 44
Tax Status of Healthcare Organizations	p. 49
Learning Objectives	p. 49
Introduction	p. 49
Rationale for Tax-Exempt Status	p. 49
Value of Tax-Exempt Status	p. 50
Qualifying for Tax-Exempt Status	p. 51
IRS Challenges to Tax-Exempt Status	p. 61
Legislative Challenges to Tax-Exempt Status	p. 63
Recommended Readings-Part I	p. 69
Operating Revenue
Third-Party Payment	p. 75
Learning Objectives	p. 75
Introduction	p. 75
History of Third-Party Payment	p. 76
Managed Care Organizations	p. 78
Post-Managed Care	p. 83
Methods of Payment	p. 86
Cost Shifting	p. 90
Medicare and Medicaid	p. 99
Learning Objectives	p. 99
Introduction	p. 99
Medicare	p. 100
Medicaid	p. 109
Balanced Budget Act of 1997	p. 134
Balanced Budget Refinement Act of 1999	p. 138
Medicare, Medicaid, and SCHIP Benefits Improvement and Protection Act of 2000	p. 141
Medicare Prescription Drug Improvement and Modernization Act of 2003	p. 143
Health Insurance Portability and Accountability Act of 1996	p. 144
Federal Safe Harbors	p. 152
Cost Accounting	p. 161
Learning Objectives	p. 161
Introduction	p. 161
Methods of Classifying Costs	p. 161
Methods of Allocating Costs	p. 163
Methods of Assembling Costs	p. 165
Methods of Determining Product Costs	p. 168
Relationship of Costs to Volume and Revenue	p. 174
Setting Charges in Healthcare	p. 179
Learning Objectives	p. 179
Introduction	p. 179
Historic Context	p. 179
Healthcare Pricing Comes Under Public Scrutiny	p. 182
Methods of Setting Charges	p. 184
Future of Setting Charges	p. 187
Cost-Shift Pricing	p. 189
Recommended Readings-Part II	p. 192
Working Capital
Managing Working Capital	p. 197
Learning Objectives	p. 197
Introduction	p. 197
Definition of Working Capital	p. 197
Importance of Working Capital	p. 198
Sources of Working Capital	p. 198
Financing Temporary Working Capital Needs	p. 200
Managing Cash Flow	p. 203
Managing Accounts Receivable	p. 211
Learning Objectives	p. 211
Introduction	p. 211
Definition of Accounts Receivable	p. 211
Importance of Accounts Receivable	p. 213
Managemnt of Accounts Receivable	p. 214
From Accounts Receivable Management to Revenue Cycle Management	p. 220
Financing Accounts Receivable	p. 221
Federal Laws Governing Accounts Receivable	p. 221
Evaluating Accounts Receivable Performance	p. 223
Managing Materials	p. 227
Learning Objectives	p. 227
Introduction	p. 227
Definition of Materials and Inventory Management	p. 227
Importance of Materials Management	p. 227
Inventory Valuation	p. 228
Management of Inventory	p. 231
Recommended Readings-Part III	p. 238
Resource Allocation
Strategic and Operational Planning	p. 241
Learning Objectives	p. 241
Introduction	p. 241
Definition of Planning	p. 241
Prerequisites to Planning	p. 242
Types of Planning	p. 242
Corporate Planning	p. 244
Strategic Planning	p. 245
The Planning Process	p. 245
Operational Planning	p. 250
Evaluating Plan Performance	p. 253
Budgeting	p. 257
Learning Objectives	p. 257
Introduction	p. 257
Definition of Budgeting	p. 257
Prerequisites to Budgets	p. 258
Types of Budgets	p. 259
Steps in the Budgeting Process	p. 260
Evaluating Budget Performance	p. 267
Capital Budgeting	p. 275
Learning Objectives	p. 275
Introduction	p. 275
Definition of Capital Expenditures	p. 276
Types of Capital Expenditure Budgets	p. 277
Steps in the Capital Budgeting Process	p. 277
Financing Capital Expenditures	p. 285
Lease Versus Purchase Decisions	p. 287
Evaluating Capital Budgeting Performance	p. 289
Recommended Readings-Part IV	p. 292
Fiancial Analysis
Financial Analysis and Management Reporting	p. 295
Learning Objectives	p. 295
Introduction	p. 295
Steps in Financial Analysis	p. 295
Ratio Analysis	p. 303
Operating Indicators	p. 308
Financial Analysis and Annual Reports	p. 310
Recommended Reading-Part V	p. 313
Healthcare's Future
Future Trends	p. 317
Learning Objectives	p. 317
Past Prediction	p. 317
Healthcare Reform	p. 322
The Future of Healthcare	p. 332
The Economy and Healthcare	p. 338
Clinton Healthcare Plan	p. 340
Recommended Readings-Part VI	p. 346
List of Acronyms	p. 349
Glossary	p. 353
Index	p. 373
About the Author	p. 385
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