Main description:

In this thoroughly revised and updated third 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. Set in a fictional mid-sized hospital, the book is written in diary form, taking the reader into the inner workings of the finance executive's office. This introduction to the most-used tools and techniques of health care financial management 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. As in the previous editions, this book introduces key practical concepts in fundamental areas of financial management.

Contents:

Tables, Figures, and Exhibits ix Preface xvi Acknowledgments xix The Author xxi CHAPTER ONE: JANUARY 1 What Is Health Care? 4 What Is Management? 6 What Is Financial Management? 7 Why Is Financial Management Important? 8 Ridgeland Heights Medical Center: The Primary Statistics 9 Pro Forma Development 15 Living with the Finance Committee and Board of Directors' Calendar 32 Year-End Closing 35 CHAPTER TWO: FEBRUARY 43 Accounting Principles and Practices 45 Objectives of Financial Reporting 47 Basic Accounting Concepts 48 Basic Financial Statements of a Health Care Organization 50 Uses of Financial Information 51 The Financial Statements 52 Preparing for the Auditors 70 Analysis of Sensitive Accounts 72 February Finance Committee Special Reports 74 CHAPTER THREE: MARCH 81 Strategic Financial Planning: Five-Year Projections 84 RHMC Strategic Financial Planning 88 Ratio Analysis 95 The Capital Plan and Its Relationship to the Strategic Plan 109 CHAPTER FOUR: APRIL 116 Medicare and Medicaid Net Revenue Concepts 120 Calculation of Medicare and Medicaid Contractual Adjustments 126 Implications of the Balanced Budget Act of 1997 136 Implication of the Medicare Modernization Act of 2003 143 Managed Care Net Revenue Concepts 146 Preparation of the Medicare and Medicaid Cost Report 153 Ratio of Costs to Charges 158 Presentation of the Audited Financial Statements to the Finance Committee 160 CHAPTER FIVE: MAY 164 Fundamentals of Revenue Cycle Management 166 Patient Registration: To Which Division Should It Report? 181 Calculation of the Allowance for Doubtful Accounts and Bad-Debt Expense 183 Calculation of the Allowance for Contractual Adjustments 189 CHAPTER SIX: JUNE 194 Budget Preparation: The Beginning 196 Budget Calendar 197 Volume Issues 207 Capital Budgeting: June 211 Accounting and Finance Department Responsibilities 219 June Finance Committee Special Agenda Items 223 CHAPTER SEVEN: JULY 227 Budget Preparation: The Middle Months 229 Capital Budgeting: July 253 Regulatory and Legal Environment 255 Other Regulatory and Business Compliance Issues 259 Corporate Compliance 259 Accreditation Issues 262 Patient Satisfaction Issues 264 CHAPTER EIGHT: AUGUST 267 Capital Budget: August 269 Operating Budget 280 Budget Variance Analysis 283 Budget Variance Parameters 287 Flexible Budgeting 287 Cost Accounting and Analysis 289 August Finance Committee Special Agenda Items 296 CHAPTER NINE: SEPTEMBER 301 Operating Budget 304 Capital Budget: September 319 Cash Budget 319 Physician Practice Management Issues 323 CHAPTER TEN: OCTOBER 343 Information Systems Implications for Health Care Financial Management 345 Information Technology Strategic Plan Initiatives 349 HIPAA Implementation Issues 351 Selection of a New Health Care Information System 353 Budget Presentation to the Board Finance Committee 362 October Finance Committee Special Agenda Items 385 CHAPTER ELEVEN: NOVEMBER 387 Preparation of the Budget Results and Delivery to the Department Managers 390 Budgeting and Spreading Contractual Adjustments by Department 394 Issues Involving RHMC's Cost Structure 395 How to Improve the Organization's Cost Structure 401 Supply Chain Management in Health Care 411 Benefits of Tax Status for Health Care Organizations 415 Preparation and Implications of the Annual IRS 990 Report 419 CHAPTER TWELVE: DECEMBER 426 Getting Ready for Year-End Reporting--Again 431 Open-Heart Surgery Pro Forma 432 December Finance Committee Special Agenda Items 448 Looking into the Future of Health Care Finance 452 References 469 Index 472