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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 2012
Instructor: Thomas P. McCabe, J.D., MBA
E-mail: tmccabe@csulb.edu
Office Hours: Weds. 12:00 to 1:00 p.m.
Office Location: ET 101
Phone: 562-708-0955
Class Number:8863-02 Room Number: ET 107
Class Meets: Wednesdays, 1:00 – 3:45pm
Additional Contact Information:
HCA Administrative Coordinator: Deby McGill,
dmcgill@csulb.edu
Tel. 562/985-5694; fax 562/985-5886
Catalog Description
Prerequisite: ACCT 201. Prerequisite/Co-requisite: HCA 402.
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(s) and other course materials
Gapenski, L. C. (2008). Healthcare Finance: An Introduction to Accounting and Financial Management, 4th
Ed. Chicago, IL; Health Administration Press.
Business calculator-BA Models such as Texas Instruments BA-IIPLUS or SHARP EL-733A.
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 when needed.
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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 overheads, computer slides and handouts (PowerPoint required). These case
presentations should take no longer than 20-25 minutes including time for questions. Presentations will
be scheduled for the last few 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. There will be five assignments distributed in class, and be
collected 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 October 20 and the final exam is on December 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 3 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.
Points
100 points
100 points
50 points
50 points
25 points
25 points
350 points
Midterm
Final
Assignments
Case Presentation
Participation
Student Grading
TOTAL
Weights
28.6%
28.6%
14.3% [10 points x 5]
14.3%
7.1%
7.1%
~100%
Cutoff Points
A = 350 - 315 points
B = 314 - 280 points
C = 279 - 245 points
D = 244 – 210 points
F = less than 210 points
Cheating And Plagiarism
Please be aware of and ensure that your behavior conforms to University Policy. See:
http://www.csulb.edu/divisions/aa/grad_undergrad/senate/documents/policy/2008/02/. .
Withdrawal policy
Per University policy; see:
http://www.csulb.edu/divisions/aa/grad_undergrad/senate/documents/policy/2002/02/. Withdrawal after 2nd
week and before final 3 weeks “permissible for serious and compelling reasons;” instructor will evaluate
student withdrawal requests on a case by case basis.
TOPIC OUTLINE
WEEK/DATE
CONTENT/ACTIVITY
WEEK #1
January 25
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
4
WEEK #2
February 1
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
ASSIGNMENT I DISTRIBUTED
Chapter 2
WEEK #3
February 8
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
February 15
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
ASSIGNMENT II DISTRIBUTED
WEEK #5
February 22
Analyzing financial performance
Purpose of performance analysis
Types of analysis
Financial statement analysis
Operating analysis
MVA and EVA Analysis
Problems with performance analysis
ASSIGNMENT II COLLECTED
ASSIGNMENT III DISTRIBUTED
WEEK #6
February 29
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 III COLLECTED
WEEK #7
March 7
Cost allocation
Direct versus indirect costs
Cost allocation basics
Cost allocation methods
Traditional versus activity based costing
Chapter 3
Chapter 17
Chapter 5
Chapter 6
5
WEEK #8
March 14
`
Week #9
March 21
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
ASSIGNMENT IV DISTRIBUTED
WEEK #10
March 28
SPRING BREAK- NO CLASSES
WEEK #11
April 4
Planning and budgeting
Planning process
Budget types
Flexible budgeting and variance analysis
Cash Budget
ASSIGNMENT IV COLLECTED
ASSIGNMENT V DISTRIBUTED
WEEK #12
April 11
Basic Financial Analysis Concepts
BRING YOUR FINANCIAL CALCULATOR ****
Time value analysis
Chapter 9
Future and present values
Lump sums
Annuities
Solving for I and N
Investment returns
Amortization
ASSIGNMENT V COLLECTED
WEEK #13
April 18
The basics of capital budgeting
Chapter 14
Project classifications
Role of financial analysis
Cash flow estimation
Breakeven and profitability analysis
Net present value and internal rate of return
MIDTERM EXAM
Chapter 7
Chapter 8
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WEEK #14
April 25
Financial risk and required return
Financial risk basics
Stand-alone risk
Portfolio risk
Corporate risk
Market risk
Risk and required return
WEEK #15
May 2
CASE PRESENTATIONS
WEEK #16
May 9
CASE PRESENTATIONS
WEEK #17
May 16
FINAL
Chapter 10
PRESENTATION EVALUATION FORM
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
Use of Media
Linking media
with speaking;
Knowledge in
handling of media;
general appearance
Weight
1
2
3
Presenter appears
uninterested, has little or
no energy, does not have
eye contact with
audience, and is difficult
to hear or understand.
Presenter seems slightly
uncomfortable at times,
audience occasionally
has trouble hearing
speaker, much of the
information is read and
pacing 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.
2
Logic of arguments is
unclear. Presentation has
little to no organization
or structure. Listeners are
unsure of the purpose of
presentation and are left
confused.
Listener can follow
presentation with effort.
Some arguments are not
clear. Organization
seems haphazard.
Opening is absent or
difficult to grasp.
Reasoning is faulty or
unclear and closing fails
to wrap up topic or make
conclusions.
Presentation is
generally clear,
logical and well
organized. Listener
can follow line of
reasoning; however, a
few minor points may
be confusing.
Presentation is wellorganized, clear and
effectively structured. Intro
effectively grasps the
audience’s attention and
explains the purpose.
Sections flow together well
and connections between
topics are easy to follow.
Closing wraps up topic and
states conclusions clearly.
3
Ideas are not new or
interesting and show a
lack of understanding of
subject. Content has little
or no value to the
discipline, and examples
or references are absent.
Explanations of concepts
and/or theories are
inaccurate or
incomplete. Enough
errors are made to
distract a knowledgeable
listener. Listeners gain
little from the
presentation.
Explanations of
concepts and theories
are accurate and
complete. Few
significant errors are
made. Speaker
provides a clear and
complete explanation
of key concepts and
theories.
Ideas are interesting and
show a new take on the
subject, content contains
potentially useful.
Information (names, facts,
etc.) included in
presentation is consistently
accurate. Listeners gain
valuable insight on topic.
1
No communication aids
are used, or they are so
poorly prepared that they
detract 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
Media used
contributes to the
quality of
presentation.
Presenter has
adequate knowledge
Media used are well
integrated with speech and
with each other. Presenter
shows expertise in
preparing and using media.
Materials are legible,
1
X
X
X
X
4
COMMENTS
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of media materials
(legibility, layout)
Mechanics
Grammar,
gestures, pace
Groups
Coordination of
presenters.
Flow and
organization of
transitions between
speakers and
sections
information is included).
Presenter shows lack of
knowledge in the
handling of media used.
1
Listeners are so
distracted by the
presenter’s apparent
difficulty with grammar,
pronunciation and
inappropriate vocabulary
that they cannot focus on
the ideas presented.
2
Members’ information
presented is duplicative,
contradictory or both.
and/or
Non-equal participation
of members
X
X
of handling media
being used. Font size
is appropriate for
reading.
attractive and well laid-out
and support overall
effectiveness of
presentation.
Presentation includes
some grammatical
errors, sentences are
incomplete and
vocabulary is somewhat
limited. Mannerisms and
gestures are distracting
and presenter speaks 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.
Awkward transitions
from one presenter to
another; information
flow is not smooth
Although presenters
have varying levels
of presentation skills,
all are comfortable
with the material they
present.
Introduction of group
members and brief
explanation of their
contributions. 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.
b.
c.
d.
e.
f.
clearly state and explain the underlying case issue (s) and problem (s) to be resolved
describe and explain relevant health, economic, finance, and historical background of the case, issue, or problem
argue for and against potential solutions
describe the solution (s) and its actual or likely implementation
explain the actual (or expected ) results of the solution and relate them to the original problems and issues
explain how this solution (s) is viewed by relevant interest groups in the company.
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