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CALIFORNIA STATE UNIVERSITY LONG BEACH
COLLEGE OF HEALTH AND HUMAN SERVICES
Department of Health Care Administration
HCA 341 Financial Management of Health Care Institutions
Spring 2014-Section 2
Instructor: Tony Sinay, PhDE-mail:
Office Hours: T 3:00 to 4:00
W 3:00 – 4:00 and by appointment.
Office Location: HHS2, Room 116
Phone: 562-985-5304 / Class Number: 23742
Class Meets: T, Th: 11:00 – 12:15
Classroom: VEC 227
Additional Contact Information:
HCA Dept. Administrative Coordinator: Deby McGill,
Tel. 562/985-5694; fax 562/985-5886
Catalog Description
Prerequisite: ACCT 201. Prerequisite/Co-requisite: HCA 300.
Application of the concepts of financial management within health care organizations, to include financial planning principles, reimbursement procedures, governmental regulation and legal restraints. Letter grade only (A-F). (Lecture)
Learning Objectives, Domain and Competency Table
The Health Care Administration Department has adopted a competency-based curriculum, based on the American College of Health Care Executives (ACHE) Competency Assessment Tool and Healthcare Leadership Alliance (HLA) Competency Directory. This course is designed to develop competencies in the areas of Knowledge of Healthcare Environment (KHE), and Business Skills and Knowledge (BSK). This course also enhances students’ writing skills that address the domain, Communication and Relationship Management (CRM).
Learning Objective / Domain / Competency / Activity (A1), Assignment (A2) or Assessment (A3) /Demonstrate analytical and decision-making skills using accounting and finance theories, principles, concepts and techniques most important to health care administrators. / BSK / A. Problem solving and decision making
D. Financial management / A1-In class problems and exercises; A2-Case Study and homework; A3- Case analysis
Gain specific factual knowledge in health care finance including concepts, terminology, classifications, methods and trends / KHE - BSK / KHE-A. Healthcare issues and trends
BSK-D. Financial management / A2-Homework
A3-Exams
Analyze health care payment systems, financial statements, financial performance, and financing and capital investments, and apply to a case study / KHE - BSK / KHE-A. Healthcare issues and trends
BSK-D. Financial management / A1-In-class problems
A2-Homework and case analysis
A3-Written case analysis
Learn how to operate a financial calculator / BSK / D. Financial management / A1-Exercise with financial calculator in class
A2-Homework
A3-Exams
Demonstrate oral communication skills / CRM / B. Communication skills / A2-Case analysis
A3 Written case report
Text(s) and other course materials
Gapenski, L. C. (2012). Healthcare Finance: An Introduction to Accounting and Financial Management, 5th Ed. Chicago, IL; Health Administration Press.
Business calculator-BA Models such as Texas Instruments BA-IIPLUS (highly recommended) or HP F1902A#ABA 10BII Business Calculator or HP 10BII+Financial Calculator.
Course Format
This course consists of lectures, class discussions, assignments, group presentations. The instructor will explain topics in class as scheduled and supplementary materials will be handed when needed.
· Case Presentation and Analysis: Each group, which consists of 3-4 students, will present a selected case. Group assignments will be made in the first class. Each group should plan for a formal presentation with computer slides and handouts (PowerPoint required). These case presentations should take no longer than 20 minutes including time for questions. Presentations are scheduled for Week 15 and 16.
· Assignments: To get the most out of this class, students should read the material assigned prior to coming to class and complete assignments. There will be five assignments distributed in class (and posted on Beachboard) as scheduled, and be collected the following week (see Course Outline for more information). A financial calculator is needed for many of these assignments.
· Exams: There will be a midterm and a final exam in this class. Both exams will be given IN-CLASS as they are scheduled. No makeup exam is given unless there is convincing reason such as doctor’s note. The midterm exam is scheduled for March 11 and 13. The final exam is scheduled for May 15 from 10:15 to 12:15.
· Participation and Absences: Attendance and participation are expected for all classes. If a student is ill, please inform the professor prior to the class and turn in the work as soon as possible. Students will receive no credit for unexcused late work. You participation grade is heavily depends on your attendance. Each missed class will lower your participation grade by 5 points. Attendance policy conforms to: http://www.csulb.edu/divisions/aa/grad_undergrad/senate/documents/policy/2001/01/.
Course Evaluation
Success in achieving the course objectives will be evaluated with the following instruments. Students can accumulate up to 350 points from all course requirements.
Points Weights
Midterm 100 points 28.6%
Final 100 points 28.6%
Assignments 50 points 14.3% [10 points x 5]
Case Presentation 50 points 14.3%
Participation 25 points 7.1%
Student Grading of Presentation 25 points 7.1%
TOTAL 350 points ~100%
Cutoff Points
A = 350 - 315 points
B = 314 - 280 points
C = 279 - 245 points
D = 244 – 210 points
F = less than 210 points
University Policy Statements
A. Statement of Accessibility: http://www.csulb.edu/divisions/aa/academic_technology/itss/course_materials/accessibility/
Accommodation
Students needing special consideration for class format and schedule due to religious observance or military obligations must provide the instructor with written notice of those needs by the second week of class.
Students who require additional time or other compensation for assignments must secure verification/assistance from the CSULB Disabled Student Services (DSS) office located at 270 Brotman Hall. The telephone number is (562)985-5401.
Accommodation is a process in which the student, DSS, and instructor each play an important role. Students contact DSS so that their eligibility and need for accommodation can be determined. DSS identifies how much time is required for each exam. The student is responsible for discussing his/her need with the instructor and for making appropriate arrangements. Student who are eligible to receive accommodation should present an Accommodation Cover Letter and a DSS Student/Teacher Testing Agreement Form to the instructor as early in the semester as possible, but no later than a week before the first test. (It takes one week to schedule taking an exam at the DSS office.) The instructor welcomes the opportunity to implement the accommodations determined by DSS. Please ask the instructor if you have any questions.
B. Cheating and Plagiarism (CSULB Catalog, AY 2010-2011, pp. 50-52)
Plagiarism Video:
http://csulb.libguides.com/content.php?pid=321631&hs=a
“Plagiarism is defined as the act of using the ideas or work of another person or persons as if they were one’s own, without giving credit to the source. Examples of plagiarism include, but are not limited to, the following: the submission of a work, either in part or in whole, completed by another; failure to give credit for ideas, statements, facts or conclusions with that rightfully belong to another; in written work, failure to use quotation marks when quoting directly from another, or close and lengthy paraphrasing of another’s writing or programming.”
“Cheating is defined as the act of obtaining or attempting to obtain or aiding another to obtain academic credit for work by the use of any dishonest, deceptive or fraudulent means. Common examples of cheating during an examination would include, but not be limited to the following: copying, either in part or in wholes, from another test or examination; giving or receiving copies of an exam without the permission of the instructor; using or displaying notes; “cheat sheets,” or other information or devices inappropriate to the prescribed test conditions; allowing someone other than the officially enrolled student to represent the same.”
“Faculty choices for confirmed plagiarism include:
1. Review- no action; and/or
2. An oral reprimand with emphasis on counseling toward prevention of further occurrences; and/or
3. A requirement that the work be repeated; and/or
4. Assignment of a score of zero (0) for the specific demonstration of competence, resulting in the proportional reduction of final course grade; and/or
5. Assignment of a failing final grade; and/or
6. Referral to the Office of Judicial Affairs for possible probation, suspension, or expulsion.”
C. Campus Behavior
“Civility Statement- Civility and mutual respect toward all members of the University community are intrinsic to the establishment of excellence in teaching and learning. The University espouses and practices zero tolerance for violence against any member of the University community. A threat of violence is an expression of intention that implies impending physical injury, abuse, or damage to an individual or his/her belongings. All allegations of such incidents will be aggressively investigated. Allegations that are sustained may result in disciplinary action up to and including dismissal from employment, expulsion from the University, and/or civil and criminal prosecution.” (CSULB Catalog, AY 2010-2011, p. 743).
Classroom Expectations- All students of the California State University system must adhere to the Student Conduct Code as stated in Section 41301 of the Title 5 of the California Code of Regulations as well as all campus rules, regulations, codes and policies. Students as emerging professionals are expected to maintain courtesy, respect for difference, and respect for the rights of others.
Unprofessional and Disruptive Behavior- It is important to foster a climate of civility in the classroom where all are treated with dignity and respect. Therefore, students engaging in disruptive or disrespectful behavior in class will be counseled about this behavior. If the disruptive or disrespectful behavior continues, additional disciplinary actions may be taken.
D. Withdrawal Policy: See: http://www.csulb.edu/divisions/aa/catalog/current/academic_regulations/withdrawal_policy.html
TOPIC OUTLINE
WEEK/DATE CONTENT/ACTIVITY READINGS
WEEK #1 Introductions, Course Syllabus/Outline
Jan 21, 23 Group Assignments
Part I The Healthcare Environment
Introduction to healthcare finance Chapter 1
Definition of health care finance
Goals of the course
The role of healthcare finance
The health services industry
Regulatory and legal issues
Course organization
WEEK #2 AND 3 The financial environment Chapter 2
Jan 28, 30 and Forms of business organization
Feb 4, 6 Alternative forms of ownership
Taxes and financial decisions
Third party payer system
Managed care plans
Alternative Reimbursement methods
ASSIGNMENT I (DISTRIBUTED on Feb 6)
WEEK #4 and #5 Part II Financial Accounting
Feb 11, 13 and Financial accounting basics and income statement Chapter 3
Feb. 18, 20 Introduction to financial accounting
The standard setting process
The income statement
Net income versus cash flow
The Balance sheet and statement of cash flows Chapter 4
Balance sheet
Accounting identity
Assets
Liabilities and equity
Relationship between income statement and balance sheet
Statement of cash flows
ASSIGNMENT I COLLECTED (Feb 13)
Analyzing financial performance Chapter 17
Purpose of performance analysis
Types of analysis
Financial statement analysis
Operating analysis
MVA and EVA Analysis
Problems with performance analysis
ASSIGNMENT II DISTRIBUTED (Feb 20)
WEEK #6 Managerial Accounting
Feb 25, 27 Managerial accounting basics, cost/profit analysis Chapter 5
Introduction to managerial accounting
Cost classifications by relationship to volume
Fixed costs
Variable costs
Profit analysis
Profit and loss statements
Graphical analysis
ASSIGNMENT II COLLECTED (Feb 27)
ASSIGNMENT III DISTRIBUTED (Feb 27)
WEEK #7 Cost allocation Chapter 6
March 4, 6 Direct versus indirect costs
Cost allocation basics
Cost allocation methods
Traditional versus activity based costing
ASSIGNMENT III COLLECTED (March 6)
WEEK #8 MIDTERM EXAM
March 11, 13
WEEK #9 Pricing and service decisions Chapter 7
March 18, 20 Price setter versus price takers
Pricing approaches
Full cost
Marginal cost
Direct cost
Target costing
Analysis methods
Setting prices
Determining service
WEEK #10 Planning and budgeting Chapter 8
March 25, 27 Planning process
Budget types
Flexible budgeting and variance analysis
Cash Budget
WEEK #11 SPRING BREAK
April 1, 3
WEEK #12, 13 Basic Financial Analysis Concepts
BRING YOUR FINANCIAL CALCULATOR
April 8, 10 and Time value analysis Chapter 9
April 15, 17 Future and present values
Lump sums
Annuities
Solving for I and N
Investment returns
Amortization
ASSIGNMENT IV DISTRIBUTED (April 17)
Week #14 The basics of capital budgeting Chapter 14
April 22, 24 BRING YOUR FINANCIAL CALCULATOR
Project classifications
Role of financial analysis
Cash flow estimation
Breakeven and profitability analysis
Net present value and internal rate of return
ASSIGNMENT IV COLLECTED (April 24)
ASSIGNMENT V DISTRIBUTED (April 24)
WEEK #15 Financial Risk and Return (if time allows) Chapter 10
Apr 29, May 1 Expected and realized Rate of Return
Stand-Alone Risk
Portfolio Return and Risk
Measuring Risk in Portfolios
Relevance of Risk Measures
ASSIGNMENT V COLLECTED (May 1)
CASE PRESENTATIONS
WEEK #16 CASE PRESENTATIONS
May 6, 8
WEEK #17 FINAL EXAM
May 15 10:15 to 12:15
Case Presentation Evaluation Form
This presentation should be high quality, appropriate for an undergraduate study, and suitable for the board of a local health care organization. It may be done alone, or with classmates in which case both students will receive the same grade. Work-in-progress may be reviewed by the instructor for preliminary feedback. The presentation should be no more than 20 minutes. The Presentation should educate the audience and at least:
a. clearly state and explain the underlying case issue (s) and problem (s) to be resolved
b. describe and explain relevant health, economic, finance, and historical background of the case, issue, or problem
c. argue for and against potential solutions
d. describe the solution (s) and its actual or likely implementation
e. explain the actual (or expected ) results of the solution and relate them to the original problems and issues
f. explain how this solution (s) is viewed by relevant interest groups in the company.
Name: Topic: Date:
Criteria Points Comments/Suggestions
Introduction
[0 – 3 points]
Focus
[0 – 2]
Organization
[0 – 5]
Content (a- f above)
[0 – 15]
Original thinking
[0 – 2]
Use of time
[0 – 3]
Delivery
[0 – 10]
Computer-made visuals
[0 –5]
Questions and Answers
[0 – 5]
……………………………………………………………………………………………………………………
Total [0 –50]
11
TEAM MEMBERS RATING FORM
Your name: Date:
Team project:
The ratings you provide on this form will be used to determine individual grades for your fellow team members. If you feel that someone has contributed less than, or more than, a fair share, then you can reflect those feelings on this evaluation form. As you consider each team member’s contribution, you should think about such things as: