Includes bibliographical references and index

ch. 1 Introduction to Healthcare Finance -- History -- Concept -- How Does Finance Work in the Healthcare Business? -- Viewpoints -- Why Manage? -- Elements of Financial Management -- Organization's Structure -- Two Types of Accounting -- Information Checkpoint -- Key Terms -- Discussion Questions -- Notes -- ch. 2 Four Things the Healthcare Manager Needs to Know About Financial Management Systems -- What Does the Manager Need to Know? -- How the System Works in Health Care -- Information Flow -- Basic System Elements -- Annual Management Cycle -- Communicating Financial Information to Others -- Information Checkpoint -- Key Terms -- Discussion Questions -- Notes -- ch. 3 Digital Age: Changing the Landscape of Healthcare Finance -- High-Tech and High-Touch Approaches -- Patient Engagement -- Social Media -- Resource Allocation -- Changes in Health Information Technology -- Population Health and the Digital Age: Crossing at the Intersection -- Additional Trends and Complexities: Other Delivery Systems -- Summary -- Information Checkpoint -- Key Terms -- Other Acronymns -- Discussion Questions -- Notes -- ch. 4 Assets, Liabilities, and Net Worth -- Overview -- What Are Examples of Assets? -- What Are Examples of Liabilities? -- What Are the Different Forms of Net Worth? -- Information Checkpoint -- Key Terms -- Discussion Questions -- ch. 5 Revenues (Inflow) -- Overview -- Receiving Revenue for Services -- Sources of Healthcare Revenue -- Grouping Revenue for Planning and Control -- Information Checkpoint -- Key Terms -- Discussion Questions -- Notes -- ch. 6 Expenses (Outflow) -- Overview -- Disbursements for Services -- Grouping Expenses for Planning and Control -- Cost Reports as Influencers of Expense Formats -- Information Checkpoint -- Key Terms -- Discussion Questions -- Notes -- ch. 7 Cost Classifications -- Distinction Between Direct and Indirect Costs -- Examples of Direct Cost and Indirect Cost -- Responsibility Centers -- Distinction Between Product and Period Costs -- Information Checkpoint -- Key Terms -- Discussion Questions -- Notes -- ch. 8 Cost Behavior and Break-Even Analysis -- Distinctions Among Fixed, Variable, and Semivariable Costs -- Examples of Variable and Fixed Costs -- Analyzing Mixed Costs -- Contribution Margin, Cost-Volume-Profit, and Profit-Volume Ratios -- Information Checkpoint -- Key Terms -- Discussion Questions -- Notes -- ch. 9 Understanding Inventory and Depreciation Concepts -- Overview: The Inventory Concept -- Inventory and Cost of Goods Sold ("Goods" Such as Drugs) -- Inventory Methods -- Inventory Tracking -- Inventory Distribution Systems -- Calculating Inventory Turnover -- Overview: The Depreciation Concept -- Book Value of a Fixed Asset and the Reserve for Depreciation -- Computing Tax Depreciation -- Information Checkpoint -- Key Terms -- Discussion Questions -- Notes -- Appendix 9-A A Further Discussion of Accelerated and Units of Service Depreciation Computations -- Accelerated Book Depreciation Methods -- ch. 10 Staffing: Methods, Operations, and Regulations -- Staffing Requirements -- FTEs for Annualizing Positions -- Number of Employees Required to Fill a Position: Another Way to Calculate FTEs -- Regulatory Requirements Regarding Staffing -- Summary -- Information Checkpoint -- Key Terms -- Discussion Questions -- Notes -- ch. 11 Reporting as a Tool -- Understanding the Major Reports -- Balance Sheet -- Statement of Revenue and Expense -- Statement of Changes in Fund Balance/Net Worth -- Statement of Cash Flows -- Subsidiary Reports -- Summary -- Information Checkpoint -- Key Terms -- Discussion Questions -- Notes -- ch. 12 Financial and Operating Ratios as Performance Measures -- Importance of Ratios -- Liquidity Ratios -- Solvency Ratios -- Profitability Ratios -- Information Checkpoint -- Key Terms -- Discussion Questions -- ch. 13 Time Value of Money -- Purpose -- Unadjusted Rate of Return -- Present-Value Analysis -- Internal Rate of Return -- Payback Period -- Evaluations -- Resources -- Information Checkpoint -- Key Terms -- Discussion Questions -- Note -- Appendix 13-A Present-Value Table (The Present Value of $1.00) -- Appendix 13-B Compound Interest Table: Compound Interest of $1.00 (The Future Amount of $1.00) -- Appendix 13-C Present Value of an Annuity of $1.00 -- ch. 14 Trend Analysis, Common Sizing, and Forecasted Data -- Common Sizing -- Trend Analysis -- Analyzing Operating Data -- Importance of Forecasts -- Operating Revenue Forecasts -- Staffing Forecasts -- Capacity Level Issues in Forecasting -- Summary -- Information Checkpoint -- Key Terms -- Discussion Questions -- Notes -- ch. 15 Using Comparative Data -- Overview -- Comparability Requirements -- Manager's View of Comparative Data -- Uses of Comparative Data -- Making Data Comparable -- Constructing Charts to Show the Data -- Information Checkpoint -- Key Terms -- Discussion Questions -- Note -- ch. 16 Operating Budgets -- Overview -- Budget Viewpoints -- Budget Basics: A Review -- Building an Operating Budget: Preparation -- Building an Operating Budget: Construction -- Working with Static Budgets and Flexible Budgets -- Budget Construction Summary -- Budget Review -- Information Checkpoint -- Key Terms -- Discussion Questions -- Notes -- Appendix 16-A Creating a DRG Budget for Respiratory Care: The Resource Consumption Approach -- Background -- DRG Budget for Respiratory Care -- Notes -- Appendix 16-B Reviewing a Comparative Operating Budget Report -- Comparative Report to Review -- Checklist Questions and Answers for the Comparative Budget Review -- ch. 17 Capital Expenditure Budgets -- Overview -- Creating the Capital Expenditure Budget -- Budget Construction Tools -- Funding Requests -- Evaluating Capital Expenditure Proposals -- Information Checkpoint -- Key Terms -- Discussion Questions -- Note -- Appendix 17-A A Further Discussion of Capital Budgeting Methods -- Assumptions -- Payback Method -- Unadjusted Rate of Return (AKA Accountant's Rate of Return) -- Net Present Value -- Internal Rate of Return -- ch. 18 Variance Analysis and Sensitivity Analysis -- Variance Analysis Overview -- Three Types of Flexible Budget Variance -- Two-Variance Analysis and Three-Variance Analysis Compared -- Three Examples of Variance Analysis -- Summary -- Sensitivity Analysis Overview -- Sensitivity Analysis Tools -- Summary -- Information Checkpoint -- Key Terms -- Discussion Questions -- Note -- ch. 19 Estimates, Benchmarking, and Other Measurement Tools -- Estimates Overview -- Common Uses of Estimates -- Example: Estimating the Ending Pharmacy Inventory -- Example: Estimated Economic Impact of a New Specialty in a Physician Practice -- Other Estimates -- Importance of a Variety of Performance Measures -- Adjusted Performance Measures Over Time -- Benchmarking -- Economic Measures -- Measurement Tools -- Information Checkpoint -- Key Terms -- Discussion Questions -- Note -- ch. 20 Understanding the Impact of Data Analytics and Big Data -- Introduction -- Defining Data Analytics -- Two Basic Approaches to Data Analytics -- Data Analytics and Healthcare Analytics Serve Many Purposes -- Data Mining -- Impacts of Healthcare Analytics -- Challenges for Healthcare Analytics -- Information Checkpoint -- Key Terms -- Discussion Questions -- Notes -- ch. 21 Understanding Investment and Statistical Terms Used in Finance -- Investment Overview -- Cash Equivalents -- Governmental Guarantor: The FDIC -- Long-Term Investments in Bonds -- Investments in Stocks -- Privately Held Companies Versus Public Companies -- Investment Indicators -- Statistics Overview -- Commonly Used Statistical and Other Mathematical Terms -- Information Checkpoint -- Key Terms -- Discussion Questions -- Notes -- ch. 22 Business Loans and Financing Costs. -- Overview of Capital Structure -- Sources of Capital -- Costs of Financing -- Management Considerations About Real Estate Financing -- Management Decisions About Business Loans -- Information Checkpoint -- Key Terms -- Discussion Questions -- Appendix 22-A Sample Amortization Schedule -- ch. 23 Choices: Owning Versus Leasing Equipment -- Purchasing Equipment -- Leasing Equipment -- Buy-or-Lease Management Decisions -- Accounting Principles Regarding Leases -- Information Checkpoint -- Key Terms -- Discussion Questions -- Note -- ch. 24 Strategic Planning and the Healthcare Financial Manager -- Major Components of the Strategic Plan: Overview -- Introduction -- Six Major Components -- Varied Approaches to Strategic Planning -- Examples of Mission, Vision, and Value Statements -- Recognizing a Special Status or Focus Within the Statements -- Financial Emphasis Within the Statements -- Relaying the Message -- Strategic Planning Cycle and Its Process Flow -- Process Flow for Creating Goals, Objectives, and Action Plans -- Process Flow for Creating Action Plans and Their Performance Measures -- Planning Cycle Over Time -- Managers' Responsibilities -- Federal Governmental Agencies Must Prepare Strategic Plans -- Why are Federal Planning Requirements Important to Us? -- Introduction: Requirements, Plans, and Performance -- Example: The VA Office of Information Technology IT Strategic Planning Cycle -- Introduction -- VA Office of Information Technology IT Strategic Planning Cycle: An Example

VA Planning Cycle's Process Flow -- Planning Cycle Definitions for this Example -- Management Responsibilities Within the Planning Cycle -- Tools for Strategic Planning: Situational Analysis and Financial Projections -- Situational Analysis -- Financial Projections for Strategic Planning -- Case Study: Strategic Financial Planning in Long-Term Care -- Appendix 24-A: Sample SWOT Worksheets and Question Guides -- Information Checkpoint -- Key Terms -- Discussion Questions -- Notes -- Appendix 24-A Sample SWOT Worksheets and Question Guides -- Introduction -- Scoring Summary Sheet for EHR Adoption and Implementation -- Three Internal Worksheets for Strengths and Weaknesses -- Internal Worksheet for EHR Information Technology (IT) Staff -- Internal Worksheet for Other Staff Involved in EHR -- Internal Worksheet for Technology and Capital Funding -- External Worksheet for Opportunities and Threats -- ch. 25 Putting It All Together: Creating a Business Plan That Is Strategic -- Overview -- Elements of the Business Plan -- Preparing to Construct the Business Plan -- Service or Equipment Description -- Organization Segment -- Marketing Segment -- Financial Analysis Segment -- "Knowledgeable Reader" Approach to Your Business Plan -- Executive Summary -- Assembling the Business Plan -- Presenting the Business Plan -- Strategic Aspects of Your Business Plan -- Information Checkpoint -- Key Terms -- Discussion Questions -- ch. 26 Understanding Strategic Relationships: Health Delivery Systems, Finance, and Reimbursement -- Introduction -- Defining Health Delivery Systems -- Defining the Area of Healthcare Finance -- Defining the Area of Healthcare Reimbursement -- Strategic Relationship Between the Healthcare Delivery System and Finance -- Strategic Relationship Between Finance and Reimbursement -- Third-Party Reimbursement and Government Expenditures: Another Strategic Relationship -- New Focus on the Relationship Between Finance and Healthcare Delivery -- Reimbursement and Physicians: An Ongoing Strategic Challenge -- Information Checkpoint -- Key Terms -- Other Acronyms -- Discussion Questions -- Notes -- ch. 27 Understanding Value-Based Health Care and Its Financial and Digital Outcomes -- Value-Based Concept: Introduction -- Value-Based Progress in the Private Sector -- Value-Based Progress in the Public Sector -- Value-Based Education Efforts -- Value-Based Legislative Reform -- Quality Measurement: The Concept -- Value-Based Public Reporting in the Private Sector -- Value-Based Public Reporting in the Public Sector -- Financial Outcomes -- Digital Outcomes -- Value-Based Strategic Planning by the Private Sector -- Value-Based Strategic Planning by the Public Sector -- Conclusion: The Future -- Information Checkpoint -- Key Terms -- Other Acronyms -- Discussion Questions -- Notes -- ch. 28 New Payment Methods and Measures: MIPS and APMs for Eligible Professionals -- Introduction -- Legislative Reform and MACRA: An Overview -- Payment Choices: MIPS Versus APMs -- MIPS Incentives -- How Are MIPS Physicians and Other Eligible Professionals Paid? -- MIPS Composite Performance Score -- MIPS Performance Categories -- How MIPS Scoring Works -- MIPS Required Reporting Affects Payment -- Data Submission -- APM Incentives[--](Choice #2) -- Eligible Professionals Within APMs -- How Are Advanced APM EPs Paid? -- How Significant Participation Works -- Advanced APM Participation Standards -- Scoring Standard for APMs -- Creating Physician-Focused Payment Models (PFPMS) -- Building the Measurement Development Plan for MIPS and APMs: Developing New Quality Measures -- Timelines for Developing Quality Measures -- Framework for MACRA Quality Measurement -- Conclusion: Benefits and Costs of the Quality Payment Program -- Three Incentive Programs as They Existed Before MIPS: A Reference -- Alternative Payment Models: A Reference -- Information Checkpoint -- Key Terms -- Discussion Questions -- Notes -- Appendix 28-A Meaningful Use: Modified and Streamlined with a New Name -- How Meaningful Use Has Evolved -- Changes to Allowable MU Stages -- Changes to Meaningful Use Requirements -- Conclusion: Advancing Care Information Becomes the New Meaningful Use -- Acronyms -- Notes -- ch. 29 Standardizing Measures and Payment in Post-Acute Care: New Requirements -- Impact Act: New Directions for Post-Acute Care -- Why Focus Attention on Post-Acute Care? -- New Alternative Payment Model for Four Care Settings -- Standardized Data and Interoperability: The Keys to PAC Reform -- Standardizing Assessment and Measure Domains for PAC Providers -- Electronic Reporting Timelines for PAC Providers -- Public Reporting: Impact Act Requirements -- Impact Act Benefits and Costs: A Summary -- Meeting Strategic Goals -- Conclusion: Innovation in the Digital Age -- Future: Change Is Inevitable -- Information Checkpoint -- Key Terms -- Other Acronyms -- Discussion Questions -- Notes -- ch. 30 ICD-10 Implementation Continues: Finance and Strategic Challenges for the Manager -- ICD-10 E-Records Overview and Impact -- Overview of the ICD-10 Coding System -- ICD-10-CM and ICD-10-PCS Codes -- E-Record Standards and the ICD-10 Transition -- ICD-10 Benefits and Costs -- ICD-10 Implementation: Systems Affected and Technology Issues -- Understand Technology Issues and Problems -- Example: Comparison of Old and New Angioplasty Codes -- ICD-10 Implementation: Training and Lost Productivity Costs -- Who Gets Trained on ICD-10? -- Costs of Training -- Costs of Lost Productivity -- Introduction: About ICD-10 Key Performance Indicators -- Key Performance Indicators to Assess ICD-10 Progress -- Using KPIs to Track ICD-10 Implementation Progress -- Reviewing KPI Results -- Creating Action Plans to Deal with Problems -- Building Specific Action Plans to Correct Deficiencies -- ICD-10 Implementation: Situational Analysis -- Implementation Planning Recommendations -- Situational Analysis Recommendations -- Commencing an Information Technology SWOT Matrix for ICD-10 -- Summary -- Information Checkpoint -- Key Terms -- Discussion Questions -- Notes -- Appendix 30-A ICD-10 Conversion Costs for a Midwestern Community Hospital -- Authors' Note -- Introduction -- Scenario -- Note -- ch. 31 Case Study: The Doctor's Dilemma -- Offer: "Sell Your Practice to Us" -- Seeking to Understand Healthcare Finance Reform -- Researching Acquisition Viewpoints and Industry Trends -- Considering Other Physicians' Reactions -- What Will Dr. Matthews Decide? -- Notes -- ch. 32 Case Study: Strategic Financial Planning in Long-Term Care -- Background -- Framework of the Board's Mandate -- Industry Profile -- Feasibility Determination -- Notes -- ch. 33 Case Study: Metropolis Health System -- Background -- MHS Case Study -- Appendix 33-A Metropolis Health System's Financial Statements and Excerpts from Notes -- Excerpts from Metropolis Health System Notes to Financial Statements -- Appendix 33-B Comparative Analysis Using Financial Ratios and Benchmarking Helps Turn Around a Hospital in the Metropolis Health System -- Appendix 33-C Proposal to Add a Retail Pharmacy to a Hospital in the Metropolis Health System -- ch. 34 Mini-Case Study 1: The Economic Significance of Resource Misallocation: Client Flow Through the Women, Infants, and Children Public Health Program -- Confronting the Operational Problem -- Environment -- Peak-Load Problem -- Method -- Results -- ch. 35 Mini-Case Study 2: Technology in Health Care: Automating Admission Processes -- Assess Admissions Process -- Areas to Automate -- Fax and Document Management -- Communication Is Important -- Referral Tracking and Approval -- Analyzing Referral Activity -- Hours Saved -- Examples and Exercises -- Supplementary Materials: The Mechanics of Percentage Computations -- Solutions to Practice Exercises

Health Care Finance: Basic Tools for Nonfinancial Managers, Fifth Edition is the most practical and applied text for those who need a basic and better understanding of health care financial management. Using actual examples from hospitals, long-term care facilities, and home health agencies, this user-friendly text includes practical information for the nonfinancial manager charged with budgeting. This exhaustive revision offers updated data throughout as well as six new chapters covering various cutting edge topics from the changing landscape in healthcare finance to understanding big data, strategic relationships, value based health care, and new payment methods. New to the Fifth Edition: - Six new chapters that explore cutting edge topics from big data and the digital age, to value-based health care, MIPS & APMS, new requirements for payments in post-acute care. - New case study: The Doctor's Dilemmay - Three new appendices offer helpful reference material on meaningful use, creating a DRG budget, and reviewing a comparative operating budget report.--Back cover

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