CALIFORNIA STATE UNIVERSITY, SACRAMENTO
MBA 225 – Financial Aspects of Health Care Administration
Course Syllabus
Instructor Name:
Noel Sousa
Instructor Office:
Tahoe 2037
Instructor Phone:
916-278-7124 (no voice mail)
Instructor Email:
noel.sousa@csus.edu
Instructor Office Hours: Tuesdays 5:00 – 6:00 pm
Required Textbooks and Reading Materials:
Healthcare Finance: An Introduction to Accounting and Financial Management, Fifth Edition, Dr.
Louis C. Gapenski, Health Administration Press, 2012
Cases in Healthcare Finance, Fifth Edition, Louis C. Gapenski, PhD, George H. Pink, Health
Administration Press, 2013
Additional reading material will be provided on a periodic basis.
Course Description:
Financing in health care institutions will be studied; including planning and control features involving
budgets, funds flow, funding sources, and factors affecting finance in the health care industry.
Analyzes will be made of the relationships and effects on health care finance of such factors as labor,
business, government, insurance, research, and demography.
Learning Objectives:
When you finish the course successfully, you will be able:
1.
2.
3.
4.
5.
6.
7.
8.
9.
To understand the basic principles of Finance and how they relate to healthcare.
To perform variance analysis and interpret the financial implications of business decision.
To understand the operating and capital budget planning process.
To understand the various reimbursement methodologies (including capitation) in healthcare
and the complexity in payer negotiations.
To be able to perform forecast analysis for a healthcare system.
To understand the Sacramento Healthcare market and the financial implications of various
system relationships.
To understand the basic principles of the Affordable Care Act and the implications on
healthcare finance.
To understand the principles in hospital pricing and service line strategy.
To understand the financial relationships of a Practice Group to Hospitals.
Page 1
The objectives are accomplished through the use of the text and case readings, supplemental
article/journal review, case presentations, and guest speaker presentations.
Week
9/2
Topic
Introduction to Healthcare Finance
Readings/Cases/Activity
Chapters 1, 2
In class assignment (bring
laptop/internet device to work in groups)
9/9
Financial Accounting
Case Discussion
* Individual case presentations
Chapters 3, 4
Case 1 – River Community Hospital
(Assessing Hosp Performance)
Case 2 – Commonwealth Health
Plans (Assessing HMO Performance)
9/16
9/23
Financial Analysis (Managerial Accounting)
Case Discussion
Speaker
* Individual case presentations
Cost Allocation
Case Discussion
* 1st Individual case write-up due (for all those
Chapter 5
Case 6 – Tulsa Memorial hospital
(Break-even analysis)
Chapter 6
Case 4 –Eagan Family Practice
(Cost Allocation Methods)
who have not presented)
9/30
10/7
Pricing and Service Line Strategy
Speaker
Case Discussion
* Individual case presentations
Contract Negotiations / Reimbursement
Methods
Speaker
Case Discussion
*Group Case write up due
*Group Case presentation
Chapter 7
Case 10 – Dallas Health Network
(ABC Analysis)
A Primer on Hospital Accounting
and Finance (document on Blackboard)
Case 9 – Cambridge Transplant
Center (Marginal Cost Pricing Analysis)
(Group1,2)
Case 7 – Cascades Mental Health
Clinic (Variance Analysis)
Group 3,4
10/14
Budgeting
Case Discussion
*Group Case presentation (cont)
Chapter 8
Case 8 – Mountain Village Clinic
Capital Budgeting
Budgeting Case Analysis
Speaker
* Individual case presentations
Chapter 14
Case 20 – Coral Bay Hospital
10/28
Capital Planning
Chapters 11, 13
11/4
Mid Term
Time Value Analysis
Chapter 9
Case 26 – Shasta Faculty Practice
10/21
(Cash Budgeting)
Group 5,6
(Traditional Project Analysis)
Page 2
11/11
11/18
11/25
12/2
12/9
12/16
Case Discussion
Speaker
* Individual case presentations
HOLIDAY
Project Risk Analysis
Speaker
Case Discussion
* Individual case presentations
Lease vs Buy
Case Discussion
* 2nd Individual case write-up due
(Physician Extender Analysis)
Financial Analysis – Ratio Analysis
Affordable Care Act
Case Discussion
Financial Forecasts/Operations
Group Project Due
Group presentations
FINAL
Project Group Presentations
Chapter 17
Ethics Mini-Case – (student selection
Chapter 15
Case 27 – Jones Memorial Hospital
(Competing Technologies with Backfill)
Chapter 18
Ethics Mini-Case – (student selection
not Case 6)
not Case 6)
GRADING
Course Grading
Course grading will be based on the components listed below:
Points
%
Comments
Quizzes
100
12.5%
Exams will cover readings, lectures and presentations by outside guests.
They will consist of short essays/multiple choice regarding the financial
foundations of Healthcare Finance, application problems similar to those in
the textbook, and an understanding of the technical vocabulary.
Midterm Exam
100
12.5%
Final Exam
100
12.5%
In class
assignments
50
6.3%
There will be various in class assignments during the semester. Many of
these will require work prior to coming to class as well as work in class.
They will be split between individual and team assignments.
3 Case Analyses
/ Presentations
150
18.8%
Team Project
Analysis /
Presentation
200
25.0%
There will be 3 written cases analyses, 2 individual and 1 group. You will
have to present 1 of your individual cases and your group case. Individual
case write-ups will be assigned at the first class meeting.
Team project will be graded based on criteria defined below under Project
Analysis and on the presentation quality.
Page 3
Participation
100
12.5%
TOTAL
800
100.0%
Extra Credit
You will receive a grade based on the quality and frequency of your
preparation and participation in class discussions. Note that you may be
called on to present your ideas, so you need to be prepared each week.
Note: Extra participation points may be awarded at the instructor’s
discretion for exceptional participation or for particularly insightful
comments in class.
Extra credit will be available for students who attend various
webinars/meetings, and/or review additional articles. A short 1/2 page
write up of the what you learned and how it relates to the class is required.
The maximum extra credit points available will be 25 points.
Grading Scale:
Points
92+
90-92
88-90
82-88
80-82
78-80
72-78
70-72
68-70
62-68
60-62
Grade
A
AB+
B
BC+
C
CD+
D
D-
This grading scale is indicative. The instructor reserves the right to modify
the cut-off points (upward or downward) based on difficulty of
assignments and overall class performance.
Incompletes are given ONLY for a student’s verifiable serious illness or
tragedy AND if instructor is notified immediately. SEND AN E-MAIL or call
during my office hours. Examples of tragedies include a death or
hospitalization of a close relative.
Late work will be penalized as follows:
 Submitted within 1 week: 50% penalty
Submitted after 1 week: no credit will be given
Case Analyses / Presentations
Individual




2 individual cases write ups will be assigned during the first class and due as indicated
by the assigned case (Note: students will have different due dates depending on the
case assigned).
1 of the cases will be presented during class (assigned on the first day of class)
Write up and presentation will be graded by the Case rubric.
Each individual write up is worth up to 25 points, and the individual presentation is up
to 38 points.
Group
 Write up will be due on the assigned day (10/7).
 Presentations will be during class on 10/7 and 10/14 (the case assigned will determine
which day you present).
 Write up and presentation will be graded by the Case rubric.
Page 4

The group write up is worth up to 25 points, and the group presentation is up to 38
points.
Team Project Analysis / Presentation
For the team project, there will be 4 groups and each group with select from 3 different types
of projects (see below). With the 4 groups only 1 of the topics can be repeated, so that each
of the 3 topics is presented at least once. The assignment of the groups and selection of the
project will occur after the semester has started.
Topics:
 Financial Forecast Analysis
 Budget project – Build a bottom up budget for a large hospital or multi specialty
practice group
 Business Plan for Service Line expansion
IMPORTANT COURSE POLICIES
Disabilities: The College of Business Administration complies with the Americans with Disabilities Act
in making reasonable accommodations for qualified students with disabilities. If you have a disability
and require accommodations, you need to provide disability documentation to SSWD, Lassen Hall
1008, (916) 278- 6955. Please discuss your accommodation needs with me after class or during my
office hours early in the semester.
Teaching Style: Classes are primarily lectures, but active participation is invited and will be rewarded.
The lectures use examples and industry examples. Digression into current issues is important,
necessary and can be FUN! I welcome you to come see me during my office hours (or by
appointment) if you have any questions or wish to discuss career opportunities.
Exams/Quizzes
Make up exams/quizzes will be handled on an individual basis. If you have a serious illness or
tragedy, please NOTIFY me BEFORE the exam by sending an email. Make-up exams must be
scheduled immediately and may not be the same structure.
Participation
Student participation in class discussions and quizzes is critical to individual learning and academic
success for all students in this course. Student participation will be evaluated based on the quality
and quantity of their contribution to class discussion and learning. Lack of attendance will
significantly impact your class participation score.
Page 5
Laptops and Cell Phones: To maintain an effective learning environment, it is expected that students
will not receive or place calls or text during class time. Should a student anticipate an emergency call
during class time, it is the student’s responsibility to notify the instructor in advance of the class and
to make arrangements accordingly. The use of laptops is encouraged, but this should be limited to:
taking notes; viewing resources when the entire class is asked to do so; and undertaking in-class
assignments that can be facilitated by the laptop as directed. During student presentations the laptop
should be closed.
Written Work and Team Presentations: All papers are to be typed, proofread, spell-checked, doublespaced, and prepared in accordance with APA style. Written work is graded for content, organization,
style, grammar and formatting. In addition to your textbooks, you should include substantive outside
references. You may note information obtained from Wikipedia, blogs, or online dictionaries, but
these will not count as substantive outside references. Preferred references sources are recognized
academic and professional authors, independent (as opposed to political) think tank analysts. Political
and partisan sources need to be identified and balanced with opposite perspectives.
Guest Speakers: Speakers are brought in to give you a different perspective on the industry and to
help you learn from professionals in the field of study. Active participation with the speakers is a
critical part of the learning process. You should be prepared to ask questions and interact with the
speaker.
Academic Honesty: Any situation involving academic dishonesty may result in an automatic grade of
"0" for the assignment. More serious situations may result in an automatic grade of "F" in the course
and the removal of the student from the course. All student actions suspected of academic
dishonesty will be reported of the to the office of the Associate Dean of Undergraduate Studies and
to the Office of the Dean of the College of Business. Cheating includes collaboration on any outside
assignments, unauthorized preparation of notes for use on examinations, use of such notes during an
examination, looking at another student's examination answers or allowing another student to look
at your own examination answers, the requesting or passing of information during an examination,
and the sharing of calculators during an examination. Plagiarism is another form of cheating. At
CSUS, plagiarism is defined as “the use of distinctive ideas or works belonging to another person
without providing adequate acknowledgement of that person’s contribution.” Plagiarism will result in
failing the assignment or failing the class. Refer to the Student Tutorial on how not to plagiarize:
http://library.csus.edu/content2.asp?pageID=353.
Syllabus Revision: The instructor reserves the right to revise this syllabus during the semester.
Revisions will be posted on SacCT.
Page 6