Financial Management for the Health Care Professional
An overview of management’s financial responsibilities
- The importance of the organization’s overall financial health
- The increasing influence of the purchasers of health care services
- Implications for the managerial role in clinics and hospitals
Financial analysis
- The consideration of financial information within, and as a part of, a broader set of financial and non-financial information
- Understanding the economic vital signs of your organization
- The importance of capital structure, liquidity and profitability as revealed by the key financial statements of your organization
- Differences between non-profit and for-profit health care delivery systems
- Communicating financial information within your organization
- Using the balanced scorecard to set goals and incorporate non-financial measures that supplement traditional financial data
- Linking long-term strategies with short-term actions
- The interrelationship between financial statements, the strategic plan and the operating budget
Pricing for health care services
- The importance of the payment environment (revenue sources) on income statement management
- Incentives inherent in alternative pricing approaches
- Fee-for-service
- Product line and DRG pricing
- Capitation
Managerial accounting information
- Understanding the cost structure of your department and services
- Important issues pertaining to the allocation of overhead and other shared resources
- The importance of managing capacity (fixed) costs as well as volume-sensitive (variable) costs
- Break-even analysis, cost-volume profit analysis and pro-forma projections in fee-for-service and capitated payment environments
- Capacity management and the leveraging of fixed costs
- Issues surrounding the leveraging of the revenue cycle
The capital budget
- The importance of understanding your department’s capital requests within the broader strategic plan of the organization
- The importance of “return on investment” to replenish your assets
- Evaluating capital requests in terms of revenue enhancement and/or cost reductions for your organization
The operating budget
- The budget process as a critical part of management responsibilities
- Volume, revenue and cost projections
- Variance analysis and cost control
- Understanding variances and cost savings “across the value chain” (spending more in this department to save costs downstream)
- Acuity-based budgeting
Schedule
Evening before course — 5:30 – 7:30 p.m. Optional dinner for those arriving early
Day 1 — 8:30 – 5:00 p.m. Session
Day 2 — 8:00 – 2:30 p.m. Session