The fundamentals of healthcare finance

Ideal for those new to healthcare finance, this book begins with an overview of the role of finance in healthcare organizations and an uncomplicated explanation of the legal and reimbursement issues faced by providers. The rest of the chapters walk you through the basics of managerial accounting and financial management, including estimating costs and profits, planning and budgeting, making capital investment decisions, monitoring operations with metrics, and reading financial statements. Learning tools and online resources To assist the learning process, the book includes critical concepts, real-world scenarios, self-test questions, industry practices, and a running glossary. A companion website includes four additional chapters that cover financial markets and securities; lease financing and business valuation; distributions to owners; and capitation, rate setting, and risk sharing. Appendixes of financial and operational ratios and their definitions are also available online. Fundamentals of Healthcare Finance, in its second edition, continues to be ideal for individuals needing basic healthcare finance skills. This easytoread, contentfilled book presents a broad overview of healthcare finance, but focuses on tasks that are essential to the operational management of clinical services, including estimating costs and profits, planning and budgeting, analyzing new equipment purchases, using metrics to monitor operations, and working with financial statements. To assist the learning process, this book includes critical concepts, practical scenarios, selftest questions, industrypractice sidebars, and a running glossary. The second edition has been thoroughly updated, including its many realworld examples. In addition, a section on healthcare reform has been added that includes discussions of valuebased purchasing, bundling, accountable care organizations, and medical homes. Additional features in the second edition include updated accounting coverage that conforms to the latest AICPA formats and a new student engagement tool, For Your Consideration sidebars, which present scenarios designed to make students think about current, sometimes controversial, issues. Companion website includes: Bonus chapters that cover financial markets and securities; lease financing and business valuation; distributions to owners; and capitation, rate setting, and risk sharing Appendixes of financial and operational ratios and their definitions Introductory, realworld cases with questions intended for either selfdirected learning or inclass use Companion casebook Cases In Healthcare Finance, Fifth Edition is an ideal supplement to this text. Through realworld cases, it provides the opportunity to bridge the gap between learning concepts in a lecture setting and applying these concepts on the job. Be better prepared to deal with the multitude of issues that arise in the practice of healthcare finance. BRIEF CONTENTS......Page 6 DETAILED CONTENTS......Page 8 PREFACE......Page 14 HOW TO USE THIS BOOK......Page 20 PART I: FOUNDATION CONCEPTS......Page 24 CHAPTER 1: INTRODUCTION TO HEALTHCARE FINANCE......Page 26 CHAPTER 2: HEALTHCARE BUSINESS BASICS......Page 49 CHAPTER 3: PAYING FOR HEALTH SERVICES......Page 75 PART II: PLANNING, MANAGING, AND CONTROL......Page 106 CHAPTER 4: ESTIMATING COSTS......Page 108 CHAPTER 5: PRICING DECISIONS AND PROFIT ANALYSIS......Page 136 CHAPTER 6: PLANNING AND BUDGETING......Page 169 CHAPTER 7: MANAGING FINANCIAL OPERATIONS......Page 200 PART III: FINANCING AND CAPITAL INVESTMENT DECISIONS......Page 230 CHAPTER 8: BUSINESS FINANCING AND THE COST OF CAPITAL......Page 232 CHAPTER 9: CAPITAL INVESTMENT DECISION BASICS......Page 264 CHAPTER 10: PROJECT CASH FLOW ESTIMATION AND RISK ANALYSIS......Page 298 PART IV: REPORTING RESULTS......Page 330 CHAPTER 11: REPORTING PROFITS......Page 332 CHAPTER 12: REPORTING ASSETS, FINANCING, AND CASH FLOWS......Page 364 CHAPTER 13: ANALYZING FINANCIAL CONDITION......Page 395 INDEX......Page 430 ABOUT THE AUTHOR......Page 440 Foundation concepts Introduction to healthcare finance Healthcare business basics Paying for health services Planning, managing, and control Estimating costs Pricing decisions and profit analysis Planning and budgeting Managing financial operations Financing and capital investment decisions Business financing and the cost of capital Capital investment decisions: time value and return Capital investment decisions: cash flows and risk Reporting results Reporting profits Reporting assets, financing, and cash flows Analyzing financial condition.