California State University, Chico

DEPARTMENT OF HEALTH AND COMMUNITY SERVICES

 

Course number: HCSV 433-01                                                                              Semester: Fall 2006

Course title:  Financial Management of Health Services Organizations                Class location: THMA 130

Class meeting times:  Mondays, 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 623                                                                                                                                                                                                                                                                                                                     

E-mail:  jsuver@frhg.org

Office Hours:  Monday   5:00 pm to 6:00 pm or 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:      

 

Required:

Louis Gapenski (2005) Healthcare Finance-An Introduction to Accounting and Financial Management, 3rd edition (Chicago:  Health Administration Press, 2005). ISBN:  1-56793-232-0

 

Optional:

Judith and RW Baker  (2006) Healthcare Finance-Basic Tools for non-Financial Managers, 2nd edition (Chicago:  Jones and Bartlett, 2006). ISBN:  0-7637-2660-5

 

      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............................................................................................................... 300

Case………………………………………………………………………………. 200

 

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 HOMEWORK WILL HAVE POINTS DEDUCTED FROM THE HOMEWORK PORTION OF YOUR FINAL GRADE.   Homework may be handwritten or word-processed.  For some problems, use of Excel is highly recommended.  Although I encourage you to make changes in your homework while we discuss it in class, homework started during that class session it is due will not be enthusiastically graded.

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.  Because this is a Monday class, we have already lost one class session so please plan to attend class the full session.

Case Assignments: A group case assignment will be due and presented 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.  Groups will be assigned on the first day of class.

 

 

Course Schedule and Assignments

 

Week

Topic(s)

Assignments

8/21

Introduction, Class Overview, Course Management;

The Healthcare environment

Financial Accounting Review

CH 1/2/3/4

8/28

 

Cost Behavior

Cost Allocation

CH 5/6  HW 6.3-6.6; 5.5-5.6

9/11

Pricing and Service decisions

CH 7  HW7.3-HW7.4

9/18

Planning and Budgeting

CH 8  HW8.1

9/25

Debt and Equity capital

CH 11/12  

10/2

 

Cost of Capital

CH 13 HW 13.2-13.3

10/9

Cost of Capital (cont)

 

CH13  HW 13.7

 

10/16

Overflow

 

10/23

Mid-term EXAM

 

10/30

Discounted Cash Flow

 

CH9/10 

11/6

Capital Budgeting and project analysis

CH 14   HW 14.6-14.7

 

11/13

Capital Budgeting and project analysis (cont)

Leasing

CH15   HW 15.2

 

CH18   HW 18.1

11/27

Current Asset Management

Analyzing Financial Performance

CH16  HW 16.6

CH17  HW 17.5

12/4

Case Presentations

Course Wrap-UP

 

12/1X

Final