Learning Goals and Milestones
The Well-Managed Healthcare Organization 7th edition
Chapter 13
What you should know
Goals of transaction
accounting
Purpose and approach of
financial reporting
How to use managerial
accounting reports
(MAR)
Contribution of transaction
accounting
Activity-based costing
(ABC)
Corporate level goal
setting and budgeting
Unit-level negotiations
Capital and new programs
budget
Monitoring goal
achievement
Finance role in LRFP
How the effectiveness of
financial management is
measured
The importance of auditing
Where to look
Milestone questions
Chapter 13,
“Transaction
Accounting”
Chapter 13, “Reporting
Financial
Information”
Chapter 13,
“Managerial
Accounting Reports”
How does the accounting system ensure accuracy
and completeness of accounting data?
Chapter 13,
“Managerial
Accounting
Analyses”
Chapter 13, “ActivityBased Costing”
Chapter 13, “Budget
Components”
Exhibits 13.3, 13.4
Chapter 13, “Budget
Cycle,”
“Negotiating the
Operating Goals,”
“Guidelines for the
Goal-Setting
Process”
Exhibits 13.5, 13.6
Chapter 13, “Capital
and New Programs
Budget”
Chapter 13,
“Monitoring Budget
Achievement”
Chapter 13,
“Developing the
LRFP”
Chapter 13, “Securing
and Managing Liquid
Assets”
Exhibit 13.7
Chapter 13, “Auditing
Functions”
© 2009 KR White and JR Griffith
What are the reports that show the financial value
and performance of the HCO?
Why are MAR usually only confirmations of
what team leaders already know?
How can you “drill down” in MAR to understand
unexpected results?
What are the advantages of transfer pricing
versus allocated costs?
How can a unit manager or PIT use a transfer
price?
How does ABC help a PIT understand
improvement opportunities?
What is marginal cost, and why is it critical?
Why should strategic scorecard guidelines drive
the budget process?
What support should finance give to the units and
the goal-setting negotiations?
How does a unit manager prepare for annual
goal-setting?
What can a division or senior manager do to help
unit managers negotiate realistic goals?
Why are capital investments and major
departures from prior years segregated from
the operating budget negotiations?
Why are goals almost always achieved?
What is done when goal achievement is
threatened?
Why are the LRFP decisions made by the
governing board rather than the CFO?
How is financial management performance
measured and benchmarked?
Why do excellent HCOs have an extensive,
independent internal auditing function?
Used with permission
1
Learning Goals and Milestones
The Well-Managed Healthcare Organization 7th edition
Continuous improvement
Chapter 13, “Measures” Are financial performance measures (measures of
Exhibit 13.11
assets and liabilities under “Quality,” Exhibit
13.11) enough to create excellent finance and
accounting?
© 2009 KR White and JR Griffith
Used with permission
2