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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 2015
Instructor: Thomas P. McCabe, J.D., MBA
E-mail: Thomas.McCabe@csulb.edu
Office Hours: T-TH. 10:30 to 11:00 a.m.
Office Location: P/T Faculty Office 03
Phone: 562-708-0955
Class No.: 4066 Section-01 Rm #: VEC 326
Class Meets: T-TH, 11:00 a.m. – 12:15 p.m.
Additional Contact Information:
HCA Administrative Coordinator: Deby McGill,
Deby.McGill@csulb.edu
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
Knowledge of Healthcare Environment (KHE) and Business Skills and Knowledge (BSK). This course also
enhances students’ presentation skills that address the domain, Communication and Relationship Management
(CRM).
Learning Objective
Domain
Competency
Demonstrate analytical and decisionmaking 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
Gain specific factual knowledge in health
care finance including concepts,
terminology, classifications, methods and
trends
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
KHE-A. Healthcare
issues and trends
BSK-D. Financial
management
KHE BSK
Activity (A1),
Assignment (A2) or
Assessment (A3)
A1-In class
problems and
exercises; A2-Case
Study and
homework; A3Case presentation
A2-Homework
A3-Exams
A1-In-class
problems
A2-Assignments and
case study
A3-Presentation
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Learning Objective
Domain
Competency
Learn how to operate a financial
calculator
BSK
D. Financial
management
Demonstrate oral communication skills
CRM
B. Communication
skills
Activity (A1),
Assignment (A2) or
Assessment (A3)
A1-Exercise with
financial calculator
in class
A2-Homework
A3-Exams
A2-Case study
A3 Presentation
TEXT 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 or SHARP EL-733A,
or FREE SMART PHONE APP: TRISTIT
COURSE FORMAT
This course will consist of lectures, class discussions, assignments, group projects, and presentations. The
instructor will explain topics in class as scheduled and supplementary materials will be handed out when
needed.
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Case Presentation and Analysis: Each group, which consists of 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 overheads, computer slides and handouts (PowerPoint required). These case presentations should
take no longer than 20 minutes including time for questions. Presentations will be scheduled for the last
couple classes of the semester.
Assignments: To get the most out of this class, students should read the material assigned prior to
coming to class and complete assignments (in Word or Excel format). There will be five assignments
posted on BeachBoard, and be collected via Dropbox, hard copy or email the following week or in the
following class (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,
etc. The midterm exam is scheduled for March 10-12th and the final exam is on May 14th.
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 3.85 points. Attendance policy
conforms to: http://www.csulb.edu/divisions/aa/grad_undergrad/senate/documents/policy/2001/01/.
Disabled students requiring special accommodations, please advise instructor early in the course.
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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.
Midterm
Final
Assignments
Case Presentation
Participation &Attend.
TOTAL
Points
100 points
100 points
50 points
50 points
50 points
350 points
Weights
28.6%
28.6%
14.3% [10 points x 5]
14.3%
14.2%
100.0%
Cutoff Points
A = 350 - 315 points
B = 314 - 280 points
C = 279 - 245 points
D = 244 – 210 points
F = less than 210 points
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. Students 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.
COMMITMENT TO INCLUSION
California State University, Long Beach is committed to maintaining an inclusive learning community that
values diversity and fosters mutual respect. All students have the right to participate fully in university
programs and activities free from discrimination, harassment, sexual violence, and retaliation. Students who
believe they have been subjected to discrimination, harassment, sexual violence, or retaliation on the basis of a
protected status such as age, disability, gender, gender identity/expression, sexual orientation, race, color,
ethnicity, religion, national origin, veteran/veteran status or any other status protected by law, should contact the
Office of Equity and Diversity at (562) 985-8256, University Student Union (USU) Suite 301,
http://www.csulb.edu/depts/oed.
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WITHDRAWALS/DROPS
The symbol "W" indicates that the student was permitted to drop a course after the second week of instruction
with the approval of the instructor and appropriate campus official. It carries no connotation of quality of
student performance and is not used in calculating grade point average. Students are held responsible for
completion of every course in which they register OR FOR WITHDRAWING DURING THE FIRST TWO
WEEKS OF CLASSES FROM COURSES WHICH THEY DO NOT INTEND TO COMPLETE. Application
for withdrawal from the University or from a class must be officially filed by the student at the Admissions and
Records Office whether the student has ever attended the class or not; otherwise, the student will receive a
grade of "U" (unauthorized incomplete) in the course. Application for withdrawal is made at the Admissions
and Records Office. A “Drop” will be submitted by the Professor for any student not in attendance at the
first two classes of the course. See University policy at:
http://www.csulb.edu/divisions/aa/grad_undergrad/senate/documents/policy/2002/02/
CHEATING AND PLAGIARISM
Please be aware of and conform your behavior to University policy regarding Cheating and Plagiarism. The
current policy can be found at:
http://www.csulb.edu/divisions/aa/grad_undergrad/senate/documents/policy/2008/02/
And please visit the following site for further information:
http://csulb.libguides.com/content.php?pid=321631&hs=a
CAMPUS CIVILITY AND THE DISRUPTION OF LEARNING: A GUIDE FOR
FACULTY AND STAFF
Please be aware of and conform your behavior to campus guide found at:
http://www.csulb.edu/divisions/aa/grad_undergrad/senate/documents/Civility_Final.pdf
CLASSROOM AND ONLINE BEHAVIOR
1. Arrive to classroom on time and to stay for the entire class period.
2. All cell/smart phones must be turned off or on vibrate and hidden from view during class time.
3. Laptop computer or tablets are allowed for (quiet) note taking only: i.e., other activities such as checking
personal e-mail or browsing the internet are prohibited.
4. Students are responsible for what transpired if they miss a class. It is the student’s responsibility to contact
a classmate to determine what was missed. “Excused absences” are specified in the University “Excused
Absences Policy Statement” (e.g., hospitalization, death of an immediate family member).
5. It is the student’s responsibility to notify the instructor of record in advance of a need for accommodation of
a disability that has been verified by the University.
6. Students should address faculty as “Professor” or “Dr. “
7. Students are expected to dress in neat and clean clothes. Business casual dress is recommended. Avoid
overly revealing clothes.
8. Students (and faculty) must adhere to University rules regarding online access and usage.
9. NOTE: Individual instructors may have additional requests regarding classroom behavior. Please adhere to
those as well.
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COURSE DATES AND ASSIGNMENTS
WEEK/DATE
WEEK #1
1/20-22
CONTENT/ACTIVITY
Introductions, Course Syllabus/Outline and
Part I The Healthcare Environment
Introduction to healthcare finance
Definition of health care finance
Goals of the course
The role of healthcare finance
The health services industry
Regulatory and legal issues
Course organization
READINGS
Chapter 1
WEEK #2
1/27-29
The financial environment
Group Assignments
Forms of business organization
Alternative forms of ownership
Taxes and financial decisions
Third party payer system
Managed care plans
Alternative reimbursement methods
Chapter 2
WEEK #3
2/3-5
Part II Financial Accounting
Financial accounting basics and the income statement
Introduction to financial accounting
The standard setting process
The income statement
Net income versus cash flow
WEEK #4
2/10-12
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 DUE 2/10
WEEK #5
2/17-19
Analyzing financial performance
Purpose of performance analysis
Types of analysis
Financial statement analysis
Operating analysis
MVA and EVA Analysis
Problems with performance analysis
Chapter 3
Chapter 17
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WEEK #6
2/24-26
Managerial Accounting
Managerial accounting basics, cost/profit analysis
Introduction to managerial accounting
Cost classifications by relationship to volume
Fixed costs
Variable costs
Profit analysis
Profit and loss statements
Graphical analysis
ASSIGNMENT II DUE 2/24
WEEK #7
3/3-5
Cost allocation
Direct versus indirect costs
Cost allocation basics
Cost allocation methods
Traditional versus activity based costing
ASSIGNMENT III DUE 3/3
WEEK #8
3/10-12
`
Week #9
3/17-19
Pricing and service decisions
Price setter versus price takers
Pricing approaches
Full cost
Marginal cost
Direct cost
Target costing
Analysis methods
Setting prices
Determining service
Chapter 7
WEEK #10
3/24-26
Planning and budgeting
Planning process
Budget types
Flexible budgeting and variance analysis
Cash Budget
ASSIGNMENT IV DUE 3/24
Chapter 8
WEEK #11
3/31-4/2
SPRING BREAK NO CLASS
Chapter 5
Chapter 6
MIDTERM EXAM
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WEEK #12
4/7-9
Basic Financial Analysis Concepts
BRING YOUR FINANCIAL CALCULATOR ****
Time value analysis
Future and present values
Lump sums
Annuities
Solving for I and N
Investment returns
Amortization
ASSIGNMENT V DUE 4/7
Chapter 9
WEEK #13
4/14-16
The basics of capital budgeting
Project classifications
Role of financial analysis
Cash flow estimation
Breakeven and profitability analysis
Net present value and internal rate of return
Chapter 14
WEEK #14
4/21-23
Financial risk and required return
Financial risk basics
Stand-alone risk
Portfolio risk
Corporate risk
Market risk
Risk and required return
Chapter 10
Week #1516
4/28-30 & 5/5-7
CASE PRESENTATIONS
WEEK #17
5/14
FINAL (Note: this is held between 10:15 a.m. and 12:15 p.m.!)
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PRESENTATION EVALUATION CRITERIA FOR USE BY PROFESSOR
Possible
Points:
Presentation
Style
Personal
appearance
(posture,
expression);
speaking
(articulation,
projection);
energy,
interest,
audience
contact
Organization
Opening and
concluding
remarks, flow
of ideas and
reasoning
within
sections.
Content
Ideas
(novelty,
clarity), value
of content,
use of
examples
Weight
1
2
3
4
X1
Presenter seems
slightly
Presenter
uncomfortable
appears
at times,
uninterested, has
audience
little or no
occasionally has
energy, does not
trouble hearing
have eye contact
speaker, much
with audience,
of the
and is difficult
information is
to hear or
read and pacing
understand.
is sometimes
too fast or slow.
Presentation is
planned and
paced for
audience
understanding,
speaker is
NOT reading
off paper and
speaker is
comfortable in
front of the
group and can
be heard by
all.
Presenter appears
professional and
lively, articulates
and projects well,
engages in
frequent eye
contact and holds
both attention and
interest of
audience.
X2
Listener can
follow
presentation
with effort.
Logic of
Some
arguments is
arguments are
unclear.
not clear.
Presentation has Organization
little to no
seems
organization or haphazard.
structure.
Opening is
Listeners are
absent or
unsure of the
difficult to
purpose of
grasp.
presentation and Reasoning is
are left
faulty or
confused.
unclear and
closing fails to
wrap up topic or
make
conclusions.
Presentation is
well-organized,
clear and
effectively
Presentation is structured. Intro
generally
effectively grasps
clear, logical
the audience’s
and well
attention and
organized.
explains the
Listener can
purpose. Sections
follow line of flow together
reasoning;
well and
however, a
connections
few minor
between topics
points may be are easy to
confusing.
follow. Closing
wraps up topic
and states
conclusions
clearly.
X3
Ideas are not
new or
interesting and
show a lack of
understanding of
subject. Content
has little or no
value to the
Explanations
of concepts
and theories
are accurate
and complete.
Few
significant
errors are
Explanations of
concepts and/or
theories are
inaccurate or
incomplete.
Enough errors
are made to
distract a
Ideas are
interesting and
show a new take
on the subject,
content contains
potentially useful.
Information
(names, facts,
COMMENTS
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discipline, and
examples or
references are
absent.
Use of Media
Linking
media with
speaking;
Knowledge in
handling of
media;
general
appearance of
media
materials
(legibility,
layout)
Mechanics
Grammar,
gestures, pace
Groups
Coordination
of presenters.
Flow and
organization
of transitions
made. Speaker
provides a
clear and
complete
explanation of
key concepts
and theories.
etc.) included in
presentation is
consistently
accurate.
Listeners gain
valuable insight
on topic.
Media used
contributes to
the quality of
presentation.
Presenter has
adequate
knowledge of
handling
media being
used. Font
size is
appropriate
for reading.
Media used are
well integrated
with speech and
with each other.
Presenter shows
expertise in
preparing and
using media.
Materials are
legible, attractive
and well laid-out
and support
overall
effectiveness of
presentation.
X1
Presentation
Listeners are so includes some
distracted by the grammatical
presenter’s
errors,
apparent
sentences are
difficulty with
incomplete and
grammar,
vocabulary is
pronunciation
somewhat
and
limited.
inappropriate
Mannerisms
vocabulary that and gestures are
they cannot
distracting and
focus on the
presenter speaks
ideas presented. too quickly or
too slowly.
Most
sentences are
complete and
grammatical,
most words
express
precise
meaning.
Presenter
speaks at
appropriate
pace.
Sentences are
complete and
grammatical, and
they flow
together easily.
Presenter shows
good grasp of
language
(grammar,
sentence
structure), uses
gestures
effectively to
support ideas,
pace is neither too
fast nor too slow;
presenter shows
good preparation.
X2
Members’
information
presented is
duplicative,
contradictory or
both. and/or
Although
presenters
have varying
levels of
presentation
skills, all are
Introduction of
group members
and brief
explanation of
their
contributions.
X1
No
communication
aids are used, or
they are so
poorly prepared
that they detract
from the
presentation.
knowledgeable
listener.
Listeners gain
little from the
presentation.
Media used are
poorly prepared
or used
inappropriately
(i.e. timing is
off, slides are
out of order,
font is too
small, too much
information is
included).
Presenter shows
lack of
knowledge in
the handling of
media used.
Awkward
transitions from
one presenter to
another;
information
flow is not
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between
speakers and
sections
Non-equal
participation of
members
smooth
comfortable
with the
material they
present.
Smooth transition
between
presenters.
Material flows
logically.
Presentation Evaluation Form is above. 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 20-25 minutes long, although additional
time may be scheduled in advance. 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.
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TEAM MEMBERS RATING FORM
Your name:
Team project:
Date:
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:
1. attending team meetings
2. defining and clarifying tasks
3. researching and gathering need information
4. analysis and problem solving
5. working well with others
6. ensuring that final products are done well
7. giving time, effort, and energy,
8. offering useful ideas
9. helping to lead the team
10. other contributions to the team and project
Rate each team member, excluding yourself, in terms of above criteria. List the names of the
team members other than yourself, in the spaces below. Then, assign a number of points to
each person to reflect your rating for each person’s contribution to the team project. These
ratings must total 100. Someone who contributed more to the team would receive a higher
number of points than someone who contributed less. Remember, the points must total 100.
The instructor will use this information to assign an individual grade to each team member.
Group Member Names
Points Assigned
Total points=100
Comments (Use other side if necessary)
Are there problems in the group such that the instructor should intervene? If so, for what
purpose? (Use the other side if necessary).
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OPTIONAL STUDENT INFORMATION SHEET
HCA 341 – FALL 2011
(TURN IN TO INSTRUCTOR)
Name___________________________________________________________
Name you prefer to use____________________________________________
Address_________________________________________________________
________________________________________________________________
Phone(s): ________________________________________________________
Best time/place to reach you: _______________________________________
Fax(es): _________________________________________________________
E-mail address: __________________________________________________
Please describe briefly:
a.
Your educational background and work experience:
b.
Future educational and career plans:
c.
Your reasons for taking this course, what you hope to learn from it:
d.
Languages you speak, read and write