...Chp 1 Questions: (pg 23-4) 1. a. What are some of the industries in the healthcare sector? Healthcare services (ex. hospitals), Health insurance (makes most of the payments to the health service providers), Medical equipment and supplies (maker of medical/diagnostic equipment), Pharmaceuticals and biotechnology (develop/market drugs/therapeutics), and "other" (which includes consulting, educational, government, and research agencies) b. What is meant by the term healthcare finance as used in this book? Healthcare Finance consists of both the accounting (which creates and provides useful operations and financial status information to interested internal and external parties for assessing financial and operation performance) and financial management (provides the theory, concepts, and tools necessary to help managers make better financial decisions) for the healthcare sector of the economy. c. What are the two broad areas of healthcare finance? Accounting and financial management (aka Corporate Finance) d. Why is it necessary to have a book on healthcare finance as opposed to a generic finance book? Healthcare services are dominated by both private and governmental not-for-profit corporations, which differ from investor-owned businesses (learned in a generic finance book) due to the majority of payments being made are from third-party payers (e.g., employers, commercial insurance companies, government programs). 2. What is the difference between...
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...Chapter 1- Question and Answers 1.1 a. What are some of the industries in the healthcare sector? Some of the industries in the healthcare sector are health insurance, pharmaceuticals and biotechnology, medical equipment and supplies and health services. Others include education institutions, government and private research agencies. b. What is meant by the term healthcare finance as used in this book? Healthcare finance is a term used in this book to describe accounting and financial management principles and practices used to ensure the financial well-being of health care organizations. c. What are the two broad areas of healthcare finance? The two broad areas of healthcare finance are accounting and financial management. Accounting is the recording of financial transactions concerning a business or organization, providing a summary of transactions. Financial management is the use of theory, principles, and concepts developed to help managers make better financial decisions. d. Why is it necessary to have a book on healthcare finance as opposed to a generic finance book? While each service industry has a certain definitive characteristic, the health service industry is different to most others. Non-profit corporations dominate the health service industry either by government or privately. Third parties such as insurance companies, employers and government programmes are the ones that make the majority of the payments to healthcare providers over individuals...
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...Alfred Hutchinson MPA 613 H.W. #1 1.1 a. Health services, Health insurance, Medical equipment and supplies, Pharmaceuticals and biotechnology, Other (consulting firms, educational, government and private agencies). b. Study of the accounting and financial management of a diverse collection of industries that involve indirectly, or directly, the healthcare of the population. c. Healthcare finance consists of two broad areas of specialization: Accounting and Financial Management d. A healthcare finance book is unique to a regular finance book. Healthcare finance book allows readers to obtain the knowledge that put them in a better position to function as managers, judge quality of financial analysis, and incorporate sound principles. A generic finance book would not cover these same types of issues that deal with healthcare management. 1.2 A business maintains its financial viability by selling goods or services, while a pure charity relies solely on contributions. 1.3 a. The primary role of finance within businesses is to plan for, acquire, and utilize resources to maximize the efficiency and value of organization. b. The role has increased over the years to support the various sections in healthcare finance. 1.4 a. Hospitals differ in function, patient length of stay, and ownership. Ambulatory care encompasses services provided to noninstitutionalized patients. Home health care brings many of the same services provided in the ambulatory...
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...This is a sample of the instructor resources for Louis C. Gapenski, PhD, Fundamentals of Healthcare Finance, Second Edition. The complete instructor resources include Test Bank PowerPoint slides Sample course syllabus Solutions to the end-of chapter questions and problems Solutions to the online cases This sample includes the following resources for Chapter 2: Answers to end-of-chapter discussion questions PowerPoint slides If you adopt this text, you will be given access to the complete materials. To obtain access, email your request to hapbooks@ache.org and include the following information in your message: Book title Your name and institution name Title of the course for which the book was adopted and season course is taught Course level (graduate, undergraduate, or continuing education) and expected enrollment The use of the text (primary, supplemental, or recommended reading) A contact name and phone number/e-mail address we can use to verify your employment as an instructor You will receive an e-mail containing access information after we have verified your instructor status. Thank you for your interest in this text and the accompanying instructor resources. Copyright and distribution of this PDF is prohibited without written permission. For permission, please contact Copyright Clearance Center at www.copyright.com Healthcare Business Basics Chapter 2 8/1/12 ANSWERS TO END-OF-CHAPTER QUESTIONS 2.1 a. A business is an entity that obtains financing from the...
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...Chapter One 1. A. What are some of the industries in the healthcare sector? The major industries in the healthcare sector includes health services, health insurance, medical equipment and supplies, pharmaceuticals and biotechnology, and other (includes a diverse collection of organization ranging from consulting firms to educational institutions to government and private research agencies. B. What is meant by the term healthcare finance as used in the book? Finance, as the term is used within the health services industry and as it is used in the book, consists of both the accounting and financial management functions. C. What are the two broad areas of Healthcare Finance? Accounting as its name implies, concerns the recording, in financial terms, of economic events that reflect the operations, resources, and financing of an organization. Financial management or corporate finance, provides the theory, concepts, and tools necessary to help managers make better financial decisions. Certain aspects of accounting involve decision making, and much of the application of financial management theory and concepts requires accounting data. D. Why is it necessary to have a book on healthcare finance as opposed a generic finance book? The reason is that while all industries have certain individual characteristics, the health services industry it truly unique. 2. What is the difference between a business and a pure charity? A business such as a hospital or medical...
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...HSMG 699 Assigniment 1 (Submit via SAKAI by Friday, Feb. 5 midnight) Right on homework Corrected on homework Multiple Choice Questions: 1. Which of the following statements about finance, accounting, and financial management is most correct? a. Accounting is of no value in decision making. b. Accounting provides the theory and concepts necessary to help managers make better decisions. c. Financial management involves the measurement, in financial terms, of operational events that affect the resources and financing of an organization. d. The primary role of finance is to plan for, acquire, and use resources to maximize the efficiency and value of the enterprise. Pp slide 22 (Gapenski 2012) e. Financial management is of no value in decision making. 2. Which of the following statements about the role of finance in healthcare organizations is incorrect? a. Over time, the finance function has become increasingly focused on strategic issues, such as joint venture decisions. b. Today, the most critical finance function is cost identification. Should say cost containment pg. 8-9 c. The finance function often supports cost containment efforts and third-party payer contract negotiations. d. The primary activities of the finance function can be summarized by the four Cs: costs, cash, capital, and control. e. In times of high profitability and abundant financial resources, the finance function tends to decline in importance. 3. Which of the following is...
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...Running head: ETHICAL MISCONDUCT AND HEALTHCARE FINANCE 1 IMPACTS OF ETHICAL MISCONDUCT AND FINANCIAL MANAGEMENT IN HEALTHCARE ORGANIZATIONS Richard Muabe Grand Canyon University: October 5, 2013 ETHICAL MISCONDUCT AND HEALTHCARE FINANCE IMPACTS OF ETHICAL MISCONDUCT AND FINANCIAL MANAGEMENT IN HEALTHCARE ORGANIZATIONS 2 Grave infringements of ethical demeanor by healthcare financial managers have made captions over the past few years. Heads of the academic community and financial healthcare industry mutually consider these defiance to represent the encouragement of the uncertain ethical environment of the 1980's, a collapse of inner and outside control, and a breakdown of individual personality on the part of a few personalities. Violations of ethics by financial managers of healthcare are dangerous, since they habitually stay obscured from view up to the time they explode into a complete flame of outrage, continuing to fume extensively after their detection, demanding a massive charge not only in dollars and cents but in respect and status. Throughout the past years there have been several situations of immense fraud concerning financial managers of healthcare, such that just in 1992, the breaches conveyed to Healthcare Financial Management Association(HFMA)'s Executive Committee were as follows: Two hospitals jointly condemned to prison an individual who was a vice president in one of these hospitals, and at the same time director of patient's accounts in the...
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...Finance in the healthcare industry can be a very tricky subject. The primary role of finance in the health services is to plan for, obtain, and make use of resources to increase the productivity and value of the business (Nowicki 2007). Finance is a very important part of the health care industry. It keeps everything on track and in order so that things operate successfully. Without the right person(s) helping to operate the place of business the company can be in a great deal of trouble. When I think of finance I think of cash. In today’s economy cash flow is at its all time low. More people are trying to cut cost and much as they can. This means less doctor visits and sometime not going to the doctor at all. Which means that if your health care business is use to seeing a certain amount of patients and that number suddenly stops that can put some jobs at jeopardy. The role of finance has increased in the healthcare industry. Like I stated previously cash flow is at an all time low. With the high demands of hospitals, long term care, nursing homes, special practices and assisted living, the need for healthcare and funding is growing daily. There is a different age group that is being more catered to due to the aging population around. Funding is necessary for all levels of healthcare organizations, and there are some governmental hospitals/facilities, non-profit, and privately funded that need to be aware of the fast paced changes that are being made financially in the world...
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...Determining Financial Viability What’s the difference – Finance and accounting, accounting and finance? Accounting is a necessary input and subfunction to finance (World Academy, n.d.). The treatment of funds and decision making, relate to the primary distinction between accounting and finance. Finance and accounting are not the same, but accounting is concerned with financial records, while finance relies on accounting reports and data base. The future depends on past events as pointers. The principles of accounting organize and prepare financial statements for an organization (Cleverly, 2011). The success to any business is critical from both accounting and finance. Accounting is knowledge and finance is the know what to do with that knowledge. Viability is about being able to generate sufficient income to meet the commitments, debts, payments, and where applicable, to all or growth while maintaining service levels in a health Care organization. Both accounting and finance are different; however, they have a close relationship to each other. Accounting involves the preparation of a balance sheet, which at a certain date will reflect on the financial position of an organization (Let’s learn finance, n.d.). Accounting shows the profit or loss of an organization during the year with concerns of recording of business transactions of a company, then presenting it in a profit and loss account. On the broader end of this concept, finance makes use of all the data which is presented in the...
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...ethical standards in healthcare had to be found. Finding god articles to use as reference was not an easy task. Upon reading the chosen articles, much thought about this topic began to enter my mind. The decision to keep reading even more articles and expand horizons before beginning to compose was a good choice. Because with every article read, my opinions changed and I gained more knowledge. The chosen articles The first chosen article is titled, “Financial reporting responsibilities” written by Carl Tietjen. This article addresses the need to update a 35 year old model that has been generally used in most financial reporting practices. In the article, Tietjen states that most organizations have thus responded by examining their own reporting practices. Then they have been implementing new methods to try to ensure that moral and ethical standards can be upheld. This article does not specifically address healthcare finance however it seemed to be a good reference point for the research. The second article used is titled, Accounting for false objectivity, written by Ralph Palliam. This article states that concludes that, “There is a need for more moral training and leadership to motivate professionals (accountants) to act in the public’s best interest, not only for the sake of the profession as a whole but also the well being of the entire economy.” Source, (Palliam, R. (2011). Accounting for False Objectivity. Journal Of Finance, Accounting & Management...
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...This is a sample of the instructor resources for Cases in Healthcare Finance, Fourth Edition by Louis Gapenski. This sample contains the case questions, case solutions, instructor model, and PowerPoints for Chapter 4. The complete instructor resources consist of 268 pages of instructor’s notes including case questions and case solutions; instructor model spreadsheets; and 623 PowerPoint slides. If you adopt this text you will be given access to complete materials. To obtain access, e-mail your request to hap1@ache.org and include the following information in your message: • Book title • Your name and institution name • Title of the course for which the book was adopted and season course is taught • Course level (graduate, undergraduate, or continuing education) and expected enrollment • The use of the text (primary, supplemental, or recommended reading) • A contact name and phone number/e-mail address we can use to verify your employment as an instructor You will receive an e-mail containing access information after we have verified your instructor status. Thank you for your interest in this text and the accompanying instructor resources. Cases in Healthcare Finance Case Questions © Health Administration Press, 2010. Reproduction without permission is prohibited. CASE 4 QUESTIONS APPLE VALLEY FAMILY PRACTICE Cost Allocation Methods 1. Briefly describe the differences in the four allocation methods discussed in the case. (Hint: Don’t discuss the mathematics...
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...Cases in Healthcare Finance Case 16 Solution Case 16 - 1 CASE 16 SOLUTION (11/17/10) Copyright 2010 by FACHE SOUTHERN HOMECARE Cost of Capital Case Information Type This case is nondirected, in that it does not contain a specific list of questions that students must answer. Rather, the case contains general guidance or concerns expressed by various parties that students should consider when developing their solutions. If you, as the instructor, want to convert this case to a directed case, and hence provide your students with very specific guidance questions, you can make available the applicable questions for this case contained in the Case Questions section of the online material for instructors. Purpose This case focuses on the estimation of the cost of capital for a business. There is minimal quantitative analysis required, but there are a significant number of conceptual issues that are addressed in the case. Complexity The calculations are not complex, but many of the issues merit a great deal of discussion and require a sound understanding of cost of capital principles. Model Description The model takes much of the busywork out of the case, so it enables students to spend more time on interpretation and evaluation. Like most case models, the student and instructor versions differ only in regards to the input data. The instructor’s version contains the complete base case inputs, while these inputs are zeroed out in the student version of the model...
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...ASC Financing and Loans Trends and Challenges: Q&A With Anthony Mai of Sun Healthcare Finance By Rob Kurtz April 09, 2010 Anthony Mai is senior vice president of Sun Healthcare Finance, which offers a full financing solutions and related advisory services to companies across the healthcare industry, including ASCs. Q: What are some of the trends you are seeing in the types of projects ASCs are seeking loans for? What types of loans are they receiving? Anthony Mai: I am seeing still a lot of request for start-up financing. I am also seeing request for acquisition financing in which a hospital sells its ASC to a newly formed LLC consisting of the hospital and physicians. The loans that they usually receive are full payout loans with terms ranging from 5-7 percent. Q: What is the critical information ASCs need to present to banks to ensure the best loan possible? AM: If the bank really understands ASCs, the most important piece of information is the physician production. What I mean is the specialty, number of cases they intend to bring to the center, the reimbursement for those cases. Second would be the proforma, which would spell out the expenses and expected profit (or loss) in the first year. Third would be the financial condition of the physicians in the group Q: After an ASC has identified the bank it wants to secure the loan from, what should be the first few steps to start and move the process along effectively? AM: The more complete package you can give them, the easier...
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...The four key elements to being a successful healthcare financial manager are “planning, organizing and directing, controlling, and decision making.” (Baker & Baker, 2011) “Getting money in” represents the inflow (revenues), whereas “getting money out” (expenses) represents the outflow.” (Baker & Baker, 2011) Good financial managers are able to adjust inflow and outflow that will make the organization successful in achieving its financial goals and objectives. Healthcare planning gives a step-by-step breakdown of what objectives the organization is working towards. Controlling allows financial managers to ensure that each department within the organization is accomplishing the objectives that have been set forth company-wide. Organizing and directing allows financial managers to make effective decisions on how to carry out plans that have already been established within the organization. Financial managers must direct on a daily basis to make sure the organization runs smoothly and provide supervision and guidance where needed. Decision making gives financial managers room to make choices on various alternatives presented to them. All decisions are based on information and analysis provided, and this information provides the tools for financial managers to make informed decisions concerning the organizations strategic financial planning. Generally Accepted Accounting Principles (GAAP), provide guidelines that help organization’s record business transactions. These principles...
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...a 304 Lehman College City University of New York Department of Health Sciences HAS 304: Health Care Finance Institutions Fall, 2014 Instructor: Chul-Young Roh, Ph.D., MPA Office: 422C Gillet Hall E-mail: chulyoung.roh@lehman.cuny.edu Phone: 718-960-8679 Office Hours: Tuesday and Thursday at 10am-noon Required Text: Required Text: Gapenski, Louis (2012), Fundamental of Healthcare Finance, 2nd ed., Chicago, IL, AUPHA, ISBN- 978-1-56793-475-5 Course Goal This course focuses on financial and managerial accounting, basic financial management concepts, long-term financing, capital investment decisions, and related topics. Course Purpose Today’s health care environment requires managers who are trained to identify finance problems and who have the skills to solve these problems. The purpose of this course is to teach students the fundamental concepts of healthcare finance, with an emphasis on provider organizations, in such a way that they are better prepared for managerial positions in public health organizations. Competencies and Learning Objectives 1. Apply principles of accounting and financial management in public health and health services organizations 2. Demonstrate written and oral skills for communicating health policy and management issues...
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