Fundamentals of Health Care Financial Management - A Practical Guide to Fiscal Issues and Activities, 4th Edition

Learn the essentials of finance theory and practice with the tools needed in day-to-day practice
 
In this thoroughly revised and updated fourth edition of Fundamentals of Health Care Financial Management, consultant and educator Steven Berger offers a practical step-by-step approach to understanding the fundamental theories and relationships guiding financial decisions in health care organization. Using cases set in a fictional mid-sized hospital, the book takes the reader into the inner workings of the finance executive's office.
 
As in the previous editions, this book introduces students to key practical concepts in fundamental areas of financial management. This innovative introduction to the most-used tools and techniques includes health care accounting and financial statements; managing cash, billings and collections; making major capital investments; determining cost and using cost information in decision-making; budgeting and performance measurement; and pricing.
 
Also covered in depth are the financial implications of Patient Protection and Affordable Care Act, which will increase patient volume, reduce bad debt, factor quality and patient satisfaction into the financial picture, and significantly affect how hospitals and physicians are paid for services.
 
Students focusing on the business side of health care will find Fundamentals of Health Care Financial Management: A Practical Guide to Fiscal Issues and Activities, 4th Edition a valuable text for understanding the workings of the health care financial system.

List of contents

Figures, Tables, and Exhibits vii
 
Preface xv
 
Acknowledgments xix
 
The Author xxi
 
Chapter 1: January 1
 
What Is Health Care? 3
 
What Is Management? 5
 
What Is Financial Management? 6
 
Why Is Financial Management Important? 8
 
Ridgeland Heights Medical Center: The Primary Statistics 9
 
Pro Forma Development 13
 
Living with the Finance Committee and Board of Directors' Calendar 19
 
Year-End Closing 24
 
Chapter 2: February 31
 
Accounting Principles and Practices 32
 
Objectives of Financial Reporting 34
 
Basic Accounting Concepts 35
 
Basic Financial Statements of a Health Care Organization 36
 
Uses of Financial Information 37
 
The Financial Statements 39
 
Preparing for the Auditors 52
 
Analysis of Sensitive Accounts 54
 
February Finance Committee Special Reports 56
 
Chapter 3: March 61
 
Strategic Financial Planning: Five-Year Projections 63
 
RHMC Strategic Financial Planning 67
 
Ratio Analysis 74
 
The Capital Plan and Its Relationship to the Strategic Plan 84
 
Chapter 4: April 91
 
Medicare and Medicaid Net Revenue Concepts 94
 
Calculation of Medicare and Medicaid Contractual Adjustments 100
 
Implications of the Balanced Budget Act of 1997 109
 
Implications of the Medicare Modernization Act of 2003 115
 
Implications of the Patient Protection and Affordable Care Act of 2010 (PPACA or ACA) 117
 
Managed Care Net Revenue Concepts 131
 
Preparation of the Medicare and Medicaid Cost Report 137
 
Presentation of the Audited Financial Statements to the Finance Committee 140
 
Chapter 5: May 145
 
Fundamentals of Revenue Cycle Management (RCM) 146
 
Calculation of the Allowance for Doubtful Accounts and Bad-Debt Expense 165
 
Calculation of the Allowance for Contractual Adjustments 170
 
Chapter 6: June 175
 
Budget Preparation: The Beginning 177
 
Budget Calendar 177
 
Volume Issues 185
 
Capital Budgeting: June 190
 
Accounting and Finance Department Responsibilities 195
 
June Finance Committee Special Agenda Items 198
 
Chapter 7: July 203
 
Budget Preparation: Th e Middle Months 204
 
Capital Budgeting: July 221
 
Regulatory and Legal Environment 223
 
Other Regulatory and Business Compliance Issues 227
 
Corporate Compliance 228
 
Accreditation Issues 229
 
Patient Satisfaction Issues 232
 
Chapter 8: August 235
 
Capital Budget: August 236
 
Operating Budget 246
 
Budget Variance Analysis 249
 
Budget Variance Parameters 252
 
Flexible Budgeting 252
 
August Finance Committee Special Agenda Items 260
 
Chapter 9: September 263
 
Operating Budget 265
 
Capital Budget: September 275
 
Cash Budget 277
 
Physician Practice Management Issues 280
 
Current Physician Practice Issues--2013 292
 
Additional Physician-Hospital Integration Issues 294
 
Monthly Physician Reporting 295
 
Chapter 10: October 299
 
Information Systems Implications for Health Care Financial Management 301
 
Information Technology Strategic Plan Initiatives 304
 
HIPAA Implementation Issues 306
 
Selection of a New Health Care Information System 310
 
Budget Presentation to the Board Finance Committee 316
 
October Finance Committee Special Agenda Items 328
 
Chapter 11: November 331
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About the author

STEVEN BERGER, CPA, is founder and president of Healthcare Insights, LLC, which specializes in health care and financial management training and consulting. Healthcare Insights has also created INSIGHTS, the health care industry's best practice decision support software. He has nearly 30 years' experience in the field and recently served a three-year term of membership on the Healthcare Financial Management Association (HFMA's) National Board of Examiners.

Summary

Helps you learn the essentials of finance theory and practice with the tools needed in day-to-day practice. This book offers a practical step-by-step approach to understanding the fundamental theories and relationships guiding financial decisions in health care organization.

Product details

• Authors: S Berger, Steven Berger
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Paperback / Softback
• Released: 02.09.2014
• EAN: 9781118801680
• ISBN: 978-1-118-80168-0
• No. of pages: 448
• Series: Jossey-Bass Public Health/Health Services Text; Jossey-Bass Public Health; Jossey-Bass Public Health; Jossey-Bass Public Health/Health Services Text
• Subject: Natural sciences, medicine, IT, technology > Medicine > General