Financial Management of Health Care Organizations

An Introduction to Fundamental Tools, Concepts and Applications
 
 
Wiley (Verlag)
  • erschienen am 24. Juli 2020
 
  • Buch
  • |
  • Hardcover
  • |
  • 704 Seiten
978-1-119-55384-7 (ISBN)
 
This thoroughly revised and updated Fifth Edition of Financial Management of Health Care Organizations offers an introduction to the tools and techniques of health care financial management. The book covers a wide range of topics, including information on the health care system and evolving reimbursement methodologies; health care accounting and financial statements; managing cash, billings, and collections; the time value of money and analyzing and financing major capital investments; determining cost and using cost information in decision-making; budgeting and performance measurement; and pricing.


The revised edition covers new accounting changes for nonprofit hospitals with respect to net asset accounts, and includes an array of new financial statement problem sets for nonprofit hospitals. These changes also required major changes to the recording of financial transactions and implementing the latest financial ratio benchmarks.


With the newest payment developments in the health care landscape, this new edition updates changes to Medicare and commercial payment systems. The passage of the new tax law also impacted hospital capital markets and for-profit hospital tax rates. This latest edition explains the impact of this tax law change on tax-exempt hospital bonds purchased by banks, as well as presenting problem sets featuring the new taxes law. Finally, changes in lease financing reporting are also addressed in this edition.


5th Edition
  • Englisch
  • New York
  • |
  • USA
  • Für Beruf und Forschung
  • Höhe: 243 mm
  • |
  • Breite: 188 mm
  • |
  • Dicke: 38 mm
  • 1310 gr
978-1-119-55384-7 (9781119553847)
weitere Ausgaben werden ermittelt
WILLIAM N. ZELMAN is a professor emeritus in the Department of Health Policy and Administration at the University of North Carolina at Chapel Hill.
MICHAEL J. MCCUE is a professor in the Department of Health Administration at Virginia Commonwealth University.
NOAH D. GLICK is currently an independent health care consultant in physician practice operations.
MARCI S. THOMAS is a clinical associate professor in the Department of Health Policy and Administration in the School of Public Health at the University of North Carolina, Chapel Hill.
Preface xiii


Acknowledgments xix


The Authors xxi


Chapter 1 The Context of Health Care Financial Management 1


Changing Methods of Health Care Financing and Delivery 3


Addressing the High Cost of Care 9


Value?Based Payment Mechanisms 19


Summary 22


Key Terms 23


Review Questions 23


Notes 24


Chapter 2 Health Care Financial Statements 25


The Balance Sheet 27


The Statement of Operations 49


The Statement of Changes in Net Assets 64


The Statement of Cash Flows 66


Summary 71


Key Terms 73


Key Equations 73


Review Questions and Problems 74


Appendix A: Financial Statements for Sample Not?for?Profit and For?Profit Hospitals, and Notes to Financial Statements 84


Note 99


Chapter 3 Principles and Practices of Health Care Accounting 101


The Books 101


An Example of the Effects of Cash Flows on Profit Reporting under Cash and Accrual Accounting 106


Recording Transactions 108


Developing the Financial Statements 118


Summary 125


Key Terms 126


Review Questions and Problems 126


Chapter 4 Financial Statement Analysis 137


Horizontal Analysis 138


Trend Analysis 144


Vertical (Common?Size) Analysis 144


Ratio Analysis 146


Liquidity Ratios 152


Revenue, Expense, and Profitability Ratios 161


Activity Ratios 169


Capital Structure Ratios 175


Summary 183


Key Equations 186


Key Terms 187


Review Questions and Problems 187


Chapter 5 Working Capital Management 209


Working Capital Cycle 209


Working Capital Management Strategies 211


Cash Management 215


Sources of Temporary Cash 216


Revenue Cycle Management 221


Collecting Cash Payments 225


Investing Cash on a Short?Term Basis 228


Forecasting Cash Surpluses and Deficits: The Cash Budget 230


Accounts Receivable Management 233


Methods to Monitor Revenue Cycle Performance 237


Fraud and Abuse 239


Summary 243


Key Terms 246


Key Equations 246


Review Questions and Problems 246


Notes 257


Chapter 6 The Time Value of Money 259


Future Value of a Dollar Invested Today 260


Present Value of an Amount to Be Received in the Future 267


Future and Present Values of Annuities 270


Future and Present Value Calculations and Excel Functions for Special Situations 276


Summary 284


Key Terms 285


Key Equations 286


Review Questions and Problems 287


Appendix B: Future and Present Value Tables 292


Note 301


Chapter 7 The Investment Decision 303


Objectives of Capital Investment Analysis 304


Analytical Methods 307


Using an NPV Analysis for a Replacement Decision 321


Summary 326


Key Terms 328


Key Equation 328


Review Questions and Problems 328


Appendix C: Technical Concerns in Calculating Net Present Value 336


Appendix D: Adjustments for Net Working Capital 342


Appendix E: Tax Implications for For?Profit Entities in a Capital Budgeting Decision and the Adjustment for Interest Expense 345


Appendix F: Comprehensive Capital Budgeting Replacement Cost Example 349


Chapter 8 Capital Financing for Health Care Providers 361


Equity Financing 364


Debt Financing 365


Bond Issuance Process 377


Lease Financing 389


Summary 396


Key Terms 397


Key Equations 398


Review Questions and Problems 398


Appendix G: Bond Valuation, Loan Amortization, and Debt Borrowing Capacity 402


Notes 411


Chapter 9 Using Cost Information to Make Special Decisions 413


Break?Even Analysis 414


Product Margin 437


Applying the Product Margin Paradigm to Making Special Decisions 441


Summary 448


Key Terms 449


Key Equations 450


Review Questions and Problems 450


Appendix H: Break?Even Analysis for Practice Acquisition 461


Chapter 10 Budgeting 467


The Planning?and?Control Cycle 467


Organizational Approaches to Budgeting 472


Types of Budgets 483


Monitoring Variances to Budget 490


Group Purchasing Organizations 492


Summary 494


Key Terms 496


Key Equation 497


Review Questions and Problems 497


Appendix I: An Extended Example of How to Develop a Budget 499


Chapter 11 Responsibility Accounting 523


Decentralization 523


Types of Responsibility Centers 526


Measuring the Performance of Responsibility Centers 531


Budget Variances 533


Summary 545


Key Terms 547


Key Equations 548


Review Questions and Problems 548


Chapter 12 Provider Cost?Finding Methods 553


Cost?to?Charge Ratio 553


Step?Down Method 554


Activity?Based Costing 561


Summary 573


Key Terms 573


Review Questions and Problems 574


Chapter 13 Provider Payment Systems 579


Evolution of the Payment System 583


Risk Sharing and the Principles of Insurance 607


Evolving Issues 612


Technology 614


Summary 616


Key Terms 616


Review Questions and Problems 617


Appendix J: Cost?Based Payment Systems 619


Notes 624


Glossary 627


Useful Websites 653


Index 657

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