School of Medicine
Division of Management
MST 561 - Managerial and Financial Accounting for Healthcare Professionals, Winter 2010
INSTRUCTOR:
Jack Raiton
Senior Fellow, Division of Management, School of Medicine
Mailcode: BICC 4DM
503-346-0367 (W)
503-819-7155 (C)
raitonj@ohsu.edu
INSTRUCTOR BIO:
Jack Raiton has been a Senior Fellow/Professor at OHSU’s OGI School of Science and Engineering, in the Department of
Management since 2000. He teaches the graduate courses in capstone (business plan/entrepreneurship), creativity and innovation, and
commercialization courses. He has taught graduate courses in General Accounting, Managerial Accounting, Healthcare Finance and
Accounting and Corporate Finance.
In 2005, Jack was named OGI’s Teacher of the Year, by vote of the student body and, in 2007, received the OGI School of Science
and Engineering's Faculty Significant Achievement in Innovation Award.
Jack previously served as Vice-President and Chief Financial Officer of Planar Systems, Inc. and Smith’s Home Furnishings and as
Corporate Controller of Tektronix. Earlier in his career, Jack held controllership positions with Fairchild Semiconductor, based in
California, New Mexico, and Seoul, Korea.
Jack served as the American Electronics Association Vice-Chair and Chair of both the Finance and the Emerging Business
Committees. Jack was also a Board Member and President of the Portland Chapter of Financial Executives, International (FEI).
During Jack’s FEI Presidency, the local chapter was runner-up for the Outstanding National Chapter of the Year award. Jack is also
active with the Oregon Entrepreneurial Network (OEN), having served on the Entrepreneur of the Year Committee for two years.
Jack is also a member of the Association for Corporate Growth.
In 2006, Jack was one of the judges for Ernst &Young's Entrepreneur of the Year award and in 2007 and 2008, was a judge for the
Portland Business Journal's CFO of the Year award.
Jack also served as Chairman of the Technology Awards Banquet, with an attendance of over 600, in 2005.
Jack earned a BS in Mathematics from Oregon State University in 1966 and a MBA in Finance and Statistics from the University of
Washington in 1967. He attended Harvard University's Advanced Management Program in 1986, MIT’s Entrepreneurship
Development Program in 2008, and Mahler Associates, Inc. Advanced Management Skills Program for General Managers in 1984.
Jack passed the CPA exam in 1979.
Jack is married and has three grown children. The oldest daughter is a nurse in Mammoth Lakes, California and her twin brother is a
maintenance manager for Bishop’s in Portland. Jack’s youngest son is a CFO for a commercial real estate firm in Portland and was
named to the Wilson High School and Portland Interscholastic League (PIL) Hall of Fame after a stellar high school and collegiate
tennis career, including two state championships and captaining the University of Michigan tennis team.
CLASS LOCATION: BICC124
OFFICE HOURS: By Appointment
School of Medicine
Division of Management
REQUIRED TEXTS:
Healthcare Finance--An Introduction to Accounting and Financial Management, Fourth Edition,
Louis C. Gapenski, ISBN: 978-1-56793-280-5
How to Read A Financial Report, Fifth Edition, John A. Tracy, ISBN: 0-471-32935-5
REQUIRED READINGS:
Weekly readings and case studies are described below in the COURSE OUTLINE.
COURSE DESCRIPTION:
Managerial and Financial Accounting for Healthcare Professionals is an applied managerial and financial accounting course.
Principles of managerial and financial accounting are developed and used to examine difficult strategic and operational decisions
confronting healthcare professionals. The general objective of this course is to provide the healthcare decision maker with the
managerial and financial accounting theory, concepts and tools necessary to make better financial management decisions on the job as
well as enable the student to make sound judgments regarding financial analyses performed by others.
LEARNING OBJECTIVES/KNOWLEDGE AND SKILL OUTCOMES:
1.
Financial Analyses - Students will acquire an understanding of financial statement analysis. The focus will be on the
interpretation of the income statement, balance sheet and cash flow statements, with a particular concern for how to analyze
these statements, using financial ratios and other analytic terms.
2.
Managerial/Cost Accounting - Students will acquire an understanding of the complexities of cost behavior. The financial
management decision-making processes will include financial projections, cost behavior, cost-volume-profit (CVP) analyses,
and special decisions such as make-or-buy, costing, cost allocation and pricing.
3.
Planning/Budgeting - Students will have gained an enhanced conceptual and technical understanding of the managerial
planning and control processes, including strategic planning, operational budgeting, forecasting, capital budgeting, and net
present value analysis.
GRADING:
Class Participation
Individual Project
(Due February 14, 2010)
Team Project
(Due March 13, 2010)
Case Studies
35%
20%
15%
30%
School of Medicine
Division of Management
COURSE OUTLINE - WEEK 1: JANUARY 4-10, 2010
Topics Covered:
Class Introductions, Orientation, Introduction to Healthcare Finance, The Financial Environment
Lecture:
Introduction to Healthcare
Readings:
How to Read A Financial Report, Chapters 1-24
Healthcare Finance, Chapters 1 & 2
HBR, Sept-Oct, 2000, Will Disruptive Innovations Cure Health Care? (6972)
HBR, June, 2004, Redefining Competition in Healthcare (R0406D)
Individual Exercise:
Quiz (1)
Current Events Discussion:
Homework:
Healthcare Finance, Questions 1.1, 2.1, 2.7
Case Study:
Conglomerate (A) - Crimson Press
COURSE OUTLINE - WEEK 2 - ON CAMPUS: FRIDAY, JANUARY 15, 2010
Lectures:
Accounting Concepts, Equations and Framework
Basics of Accounting
HBS Accounting Definitions
Top 10 Accounting Principles for Entrepreneurs
Readings:
HBSP 101118, A Conceptual Framework for Financial Reporting
HBSP 101119, The Mechanics of Financial Reporting
Case Study:
HBSP 177078, Chemalite, Inc.
Video:
Consumer-Driven Health Care: A Revolution for Employers, Consumers, and Providers
Project Team Formation:
School of Medicine
Division of Management
COURSE OUTLINE - WEEK 3: JANUARY 18-24, 2010
Topics Covered
Financial Accounting and The Income Statement
Lecture:
Financial Accounting Basics and The Income Statement
Readings:
Healthcare Finance, Chapter 3
HBSP 193028, The Accounting Framework, Financial Statements and Some Accounting Concepts
HBSP 101109, The Income Statement
HBSP 192153, Introduction to Accounting Records
Individual Exercises:
Quizzes (5)
Practice Problem (1)
Current Events Discussion:
Homework:
Healthcare Finance, Problem 3.5
Brandywine Homecare
Case Study:
Menotomy Home Health Services - Crimson Press
COURSE OUTLINE - WEEK 4: JANUARY 25-31, 2010
Topics Covered:
The Balance Sheet and Statement of Cash Flows
Lecture:
The Balance Sheet and Statement of Cash Flows
Readings:
Healthcare Finance, Chapter 4
HBSP 101108, The Balance Sheet
HBSP 101107, The Statement of Cash Flows
Individual Exercises:
Quizzes (2)
Current Events Discussion:
Homework:
Healthcare Finance, Problem 4.7
Case Study:
Brookstone Ob-Gyn Associates - Crimson Press
School of Medicine
Division of Management
COURSE OUTLINE - WEEK 5: FEBRUARY 1-7, 2010
Topics Covered:
Financial Condition Analysis
Lecture:
Financial Analysis
Readings:
Healthcare Finance, Chapter 17
HBSP 193029, Introduction to Financial Ratios and Financial Statement Analysis
HBSP 195177, Financial Statement Analysis
Individual Exercise:
Quiz (1)
Current Events Discussion:
Homework:
Healthcare Finance, Problem 17.4
Case Studies:
Long Term Care Division - Crimson Press
Financial Profile of HMO, Hospital Management and Pharmaceutical Industries - Crimson Press
COURSE OUTLINE - WEEK 6: FEBRUARY 8-14, 2010
Topics Covered:
Managerial Accounting Basics, Cost Behavior, Profit Analysis, Breakeven, Cost Allocation
Lectures:
Managerial Accounting Basics, Cost Behavior, and Profit Analysis
Cost Allocation
Readings:
Healthcare Finance, Chapters 5 & 6 (Pages 163-182)
HBSP 892010, Relevant Costs and Revenues
HBSP 192068, A Brief Introduction of Cost Accounting
HBSP 5252BC, Breakeven Analysis and Operating Leverage: Understanding Cash Flow
Individual Exercises:
Practice Problems (6)
Quiz (1)
Current Events Discussion:
Homework:
Healthcare Finance, Problems 5.1, 5.2, 5.3, 5.4, 5.5, 5.6
Case Studies:
HBSP 178189, Rosemont Hill Health Center
Medi-Exam Health Services, Inc, - Crimson Press
School of Medicine
Division of Management
COURSE OUTLINE - WEEK 7: FEBRUARY 15-21, 2010
Topics Covered:
Activity Based Costing and Pricing
Lectures:
Activity-Based Costing Introduction
Pricing Decisions
Readings:
Healthcare Finance, Chapters 6 (Pages 182-186) and Chapter 7
HBSP 197076, Introduction to Activity Based Costing
HBSP 193044, Activity Accounting - Another Way to Measure Cost
HBR, Sept-Oct, 1995, How Do You Know When the Price is Right? (95501)
Current Events Discussion:
Individual Exercises:
Practice Problems (2)
Quiz (1)
Homework:
Healthcare Finance, Problem 6.7
Case Study:
HBSP 100054, Cambridge Hospital Community Unit Network - The Primary Care Unit
COURSE OUTLINE - WEEK 8: FEBRUARY 22-28, 2010
Topics Covered:
Time Value of Money and The Basics of Capital Budgeting
Lecture:
Time Value of Money
Readings:
Healthcare Finance, Chapters 9 & 14
HBSP 9-198-004, Basic Capital Investment Analysis
HBSP 177012, Cash Flow and the Time Value of Money
Individual Exercises:
Quizzes (6)
Practice Problem (1)
Current Events Discussion:
Homework:
Healthcare Finance, Problems 9.1 and 14.1
Case Study:
Green Valley Medical Center - Crimson Press
School of Medicine
Division of Management
COURSE OUTLINE - WEEK 9: MARCH 1-7, 2010
Topics Covered:
Planning and Budgeting
Lecture:
Planning and Budgeting
Readings:
Healthcare Finance, Chapter 8
HBSP 193101, Responsibility Centers and Performance Measurement
HBSP 206048, Note on Financial Forecasting
Current Events Discussion:
Homework:
Healthcare Finance, Problem 8.3
Case Studies:
Los Reyes Hospital (A) -Crimson Press
COURSE OUTLINE - WEEK 10 - ON CAMPUS: SATURDAY, MARCH 13, 2010
Team Presentations:
Balanced Scorecard
Budgets
Activity Based Costing
Strategic Planning
Patient Driven Healthcare
Video:
Sicko
COURSE OUTLINE - WEEK 11 - MEET AND GREET: MARCH ___, 2010
Venue:
To Be Determined