California State University, Chico

DEPARTMENT OF HEALTH AND COMMUNITY SERVICES

Course number: HCSV 433-01 Semester: Fall 2005

Course title: Management of Health Services Organizations Class location: THMA 134

Class meeting times: Wednesdays, 6:00-8:50pm

Instructor: J.A. Suver, MHA Office Phone: (530) 846-9021

Part time instructor FAX: (530) 846-9027

Health Services Administration Home Phone: (530)-695-8514

Office: Butte 620

E-mail: jsuver@frhg.org

Office Hours: Friday 12:00 pm to 2:00 pm by appointment

Course Description

Prerequisites: Financial Accounting, Management Accounting, and Business Math

This is a required course in the Health Services Administration Option.

Financial Management is a discipline vital for healthcare managers as economic pressures continue against all points of the healthcare delivery system. The purpose of HSCV 433 is to provide exposure to the “financial side” of effective decision-making in a healthcare organization. This course coupled with others in the curriculum such as marketing, strategic planning and management will help students in the health services program to analyze problems from multiple perspectives. Two strategies will be used to accomplish this purpose: (1) Train students on the basic techniques of financial management, and (2) allow class participants to apply these tools to simulated management situations. Although a large portion of the class will devoted to learning specific financial tools, a large portion is devoted to developing an appreciation for the financial analysis approach to decision making. At the end of this course, students will be able to

• Understand the role of the financial manager in the healthcare organization
• Understand and use the basic tools of financial management
• Prepare and use financial computer models
• Read financial statements and critically analyze them
• Understand capital investment decisions
• Discuss knowledgeably cost behavior
• Identify and discuss the methods of financial forecasting
• Recognize responsibility accounting and performance measures
• Understand various reimbursement methodologies
• Apply financial analysis to help deciding organizational strategies

Required Materials:

Texts:

Michael Nowicki,( 2004) The Financial Management of Hospitals and Healthcare Organizations, 3rd Edition (Chicago: Health Administration Press, 2004). ISBN 1-56793-226-6

Michael Nowicki,(2004) Practice Problems and Case Study to accompany The Financial Management of Hospitals and Healthcare Organizations 3rd Edition (Chicago: Health Administration Press, 2004). ISBN 1-56793-231-2

Handouts and any in-class cases will be distributed by the instructor via Web-CT.

A calculator is required for this course (or a laptop computer brought to class). Certainly one that has built-in financial functions will provide useful; however it is not necessary to purchase an expensive complicated business calculator.

Access to Microsoft Excel for some case assignments would be very useful. The instructor can assist the class as needed with the needed application functions.

Grading

Exams

Mid-term Exam......................................................................................................... 250

Final Exam................................................................................................................ 250

Homework

Homework............................................................................................................... 250

Case………………………………………………………………………………. 250

Other

Attendance................................................................................................ 50 points lost

for every session missed. One excused absence will be allowed.

Late written assignments will be eligible for one-half credit, if received within one-week of the due date. No assignments will be accepted after one-week.

Grades:

A.............. 930 - 1000 C+...... 770 - 799

A-............. 900 - 929 C........ 730 - 769

B+............ 870 - 899 C-....... 700 - 729

B............... 830 - 869 D+...... 660 - 699

B-............. 800 - 829 D........ 600 - 659

Projects and Activities

Homework assignments: Each student will complete the assigned case homework by the due date indicated on the course outline. Homework problems are due on the dates indicated on the syllabus. LATE HOMEOWRK WILL HAVE POINTS DEDUCTED FROM TH HOMEWORK PORTION OF YOUR FINAL GRADE. Homework may be handwritten or word-processed. For some problems, use of Excel is highly recommended.

Readings and in-class case assignments: Students are expected to have read the assigned readings by the date indicated on the course schedule.

Class participation: Attendance is expected. Participation means more than being present in class. Students are expected to actively participate in class activities and discussions.

Case Assignment: A case assignment from the text will be due on the date in the syllabus. This assignment brings up many of the topics taught in class to integrate the course. It is due on the date indicated in the syllabus. Progress checks will be done throughout the semester. Skip questions #3, #5, #15

Course Schedule and Assignments

Week	Topic(s)	Assignments
8/22	Introduction, Class Overview, Course Management; Introduction to Financial Management	CH 1
8/29	Organizing the financial management function; tax status of healthcare organizations	CH 2/3
3	Reimbursement	CH 4/5 HW 4.1
4	Cost Accounting	CH 6
5	Cost Accounting (cont)	HW 6.1, 6.2, 6.3, 6.4
6	Setting Charges/pricing strategy	CH 7 HW 7.1, 7.2, 7.3
7	Managing Working capital; managing A/R (We are skipping the inventory mgmt ch)	CH 8/9 HW 8.1-8.2
8	Budgeting	CH 11/12
9	Mid-term EXAM
10	Discounted Cash Flow	Web ct; in class problem set
11	Capital Budgeting and project analysis	CH 13
12	Capital Budgeting and project analysis (cont)	HW 13.1, 13.2
13	Capital Structure	Web-ct
14	Financial Analysis	CH 14, HW 14.1
15	Case Due and discussed in class
16	Final