Health Care Finance: Basic Tools for Nonfinancial Managers (Health Care Finance (Baker))
Judith J. Baker, R.W. Baker
Format: PDF / Kindle (mobi) / ePub
Health Care Finance: Basic Tools for Nonfinancial Managers is the most practical financial management text for those who need basic financial management knowledge and a better understanding of healthcare finance in particular. Using actual examples from hospitals, long-term care facilities, and home health agencies, this user-friendly text includes practical information for the nonfinancial manager charged with budgeting. The Fourth Edition offers: - An expanded chapter on Electronic Records Adoption: Financial Management Tools & Decisions - New chapter : “ICD-10 Adoption and Healthcare Computer Systems” - New chapter: “Other Technology Adoption and Management Decisions” - New chapter: “Strategic Planning and the Healthcare Financial Manager” - New case study: "Strategic Planning in Long-Term Care" that connects with the chapter on strategic planning - New appendix: "Appendix C: Employment Opportunities in Healthcare Finance"
report. The surplus amounts to $85,000 ($300,000 minus $215,000). Denise’s report for radiology services is at the bottom right of Figure 6–3. Her report shows the controllable expenses she is responsible for, which amount to $20,000. Her report shows only expenses because it is a support center, not a responsibility center. Therefore, Denise is responsible for expenses but not for revenue/volume. Bill, the director, receives a report for the general and administrative (G&A) expenses, as shown
$6,000 3,600 2,160 1,080 -0- Accumulated Net Remaining Depreciation Undepreciated (Reserve for Cost Depreciation) (Net Book Value) Accelerated Book Depreciation Methods 95 96 Chapter 8 Understanding Inventory and Depreciation Concepts The computation continues as follows: • For Year 1, $10,000 times 0.40 equals $4,000 Year 1 depreciation expense. Accumu lated depreciation for Year 1 also equals $4,000. The accumulated depreciation of $4,000 is subtracted from the $10,000 cost to
required. We examine both methods in this chapter. FTEs for Annualizing Positions Why Annualize? Annualizing is necessary because each employee that is eligible for benefits (such as vacation days) will not be on duty for the full number of hours paid for by the 101 9 Progress Notes After completing this chapter, you should be able to 1. Understand the difference between productive time and nonproductive time. 2. Understand computing fulltime equivalents to annualize staff positions.
Ratios Solvency ratios reflect the ability of the organization to pay the annual interest and principal obligations on its long-term debt. As the name implies, they measure the ability of the organization to “be solvent”: in other words, to have sufficient resources to meet its longterm obligations. Debt Service Coverage Ratio The debt service coverage ratio (DSCR) is represented as change in unrestricted net assets (net income) plus interest, depreciation, and amortization divided by maximum
(10,000) (3.5)% 80,000 10% 45,000 5% (35,000) (43.5)% 120,000 15% 180,000 20% 60,000 50.0% $800,000 100% $900,000 100% $100,000 – 146 Chapter 13 Trend Analysis, Common Sizing, and Forecasted Data Table 13–5 Vertical and Horizontal Analysis for the Operating Room Comparative Expenses Annual 12-Month 12-Month Increase % of Account Current Year % Prior Year % (Decrease) Change Social Security Pension Health Insurance Child Care Patient Accounting