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.
Autorentext
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.
Klappentext
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 tax law. Finally, changes in lease financing reporting are also addressed in this edition.
Zusammenfassung
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.
Inhalt
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
ValueBased 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 NotforProfit and ForProfit 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 (CommonSize) 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 ShortTerm 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 Investm…