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HCA 211: Health Care Finance

Course Description

This course will focus on the managerial aspects of financial analysis. It includes analysis of financial statements, costs, capital projects, and working capital, Medicare, Medicaid, changes and rate setting under reimbursement schedules, budgeting, ROI methodology, forecasting, and strategic planning. (3 credits)

This course meets certain CAHIIM competencies for HIM Majors.

Recommended Prerequisites

  • ACC 101: Financial Accounting

Student Learning Outcomes (SLOs)

Students who successfully complete this course will be able to:

  1. Summarize the four main elements of financial management and know how to structure the information flow to make a financial management system work.
  2. Explain the differences in and know how to group sources of health care revenue (Medicare, Medicaid, private insurance, uninsured payments) for planning and control.
  3. Illustrate distinctions between expense and cost, and explain where to place individual items under these categories.
  4. Demonstrate how to distinguish between direct and indirect costs, ethical and unethical costs billed to patients, fixed versus variable or semi-variable costs, and product versus period costs.
  5. Critique a budget using common sizing and trend analysis tools and the key role played by assumptions in budget forecasts.
  6. Effectively use present values, discounted cash flows, internal rate of return, return on investment (ROI), payback period, liquidity ratios, solvency ratios, and profitability ratios in their daily work activities.
  7. Explain the use of the Pareto rule and apply the financial principles learned in this course to a global problem facing health care.

General Education Outcomes (GEOs)

Please check the applicable GEOs for this course, if any, by outcomes at GEO Category Search, or by subject area at GEO Discipline Search.

Course Activities and Grading

Assignments

Weight

Midterm Exam (Week 4)

25%

Final Exam (Week 8)

25%

Homework

25%

Discussions

25%

Total

100%

Required Textbooks

Available through Charter Oak's online bookstore

  • Baker, Judith J. Health Care Finance - with Access Code. 5th ed. Jones and Bartlett Publishers, 2017. ISBN-13: 9781284118216

Note: Students must purchase this book NEW to ensure the use of an Access Code needed for online resources.

Additional Resources

  • Financial Calculator: found on an Internet web page, or purchased through an electronics store.

Course Schedule

(Note: Course week runs Monday 12:00 am EST - Sunday 11:59 pm EST)

Week

SLO

Readings and Exercises

Assignments

1

1

Topics: Introduction to Healthcare Finance, Financial Management Systems, the Digital Age & Finance
  • Readings:
    • Chapters 1, 2, 3
    • Powerpoints 1, 2, 3
  • Read assigned chapters
  • Participate in the Discussions (Postings must be completed on two separate days throughout the week by Sunday 11:59 pm EST)
  • Review the Lecture material

2

2

Topics: Assets, Liabilities, Net Worth, Revenues, Expenses and Cost Classifications
  • Readings:
    • Chapters 4, 5, 6 & 7
    • Powerpoints 4, 5, 6 & 7
  • Read assigned chapters
  • Participate in the Discussions (Postings must be completed on two separate days throughout the week by Sunday 11:59 pm EST)
  • Review the Lecture material
  • Complete Assignment (Due by Sunday 11:59 pm EST)

3

2, 3

Topics: Cost Behavior and Break-Even Analysis, Inventory and Depreciation, Staffing
  • Readings:
    • Chapters 8, 9 & 10
    • Powerpoints 8, 9 & 10
  • Read assigned chapters
  • Participate in the Discussions (Postings must be completed on two separate days throughout the week by Sunday 11:59 pm EST)
  • Review the Lecture material
  • Complete Assignment (Due by Sunday 11:59 pm EST)

4

4

Topics: Reporting, Ratios, Time Value of Money
  • Readings:
    • Chapter 11, 12 & 13
    • Powerpoint 11, 12 & 13
  • Review assigned chapters
  • Participate in the Discussions (Postings must be completed on two separate days throughout the week by Sunday 11:59 pm EST)
  • Review the Lecture material
  • Complete Midterm Exam (Due by Sunday 11:59 pm EST)

Midterm Exam
Chapters 1-13
SLOs 1 - 4

5

4

Topics: Common Sizing, Trend Analysis, Forecasted Data and Comparative Data
  • Readings:
    • Chapters 14 & 15
    • Powerpoints 14 & 15
  • Read assigned chapters
  • Participate in the Discussions (Postings must be completed on two separate days throughout the week by Sunday 11:59 pm EST)
  • Review the Lecture material
  • Complete Assignment (Due by Sunday 11:59 pm EST)

6

5

Topics: Operating Budgets and Capital Expenditure Budgets
  • Readings:
    • Chapters 16 & 17
    • Powerpoints 16 & 17
  • Read assigned chapters
  • Participate in the Discussions (Postings must be completed on two separate days throughout the week by Sunday 11:59 pm EST)
  • Review the Lecture material
  • Complete Assignment (Due by Sunday 11:59 pm EST)

7

6, 7

Topics: Variance Analysis, Sensitivity Analysis, Estimates, Benchmarking, Other Tools & Data Analytics
  • Readings:
    • Chapters 18, 19 & 20
    • Powerpoints 18, 19 & 20
  • Read assigned chapters
  • Participate in the Discussions (Postings must be completed on two separate days throughout the week by Sunday 11:59 pm EST)
  • Review the Lecture material
  • Complete Assignment (Due by Sunday 11:59 pm EST)

8

1 - 7

Topics: Understanding Investment Terms, Business Loan, Financing Costs, Owning Versus Leasing
  • Readings:
    • Chapters 21, 22 & 23
    • Powerpoints 21, 22 & 23
  • Read assigned chapters
  • Complete Final Exam (Due by Sunday 11:59 pm EST)
  • Complete Course Evaluation

Final Exam
Chapters 14-23
SLOs 1-7

COSC Accessibility Statement

Charter Oak State College encourages students with disabilities, including non-visible disabilities such as chronic diseases, learning disabilities, head injury, attention deficit/hyperactive disorder, or psychiatric disabilities, to discuss appropriate accommodations with the Office of Accessibility Services at OAS@charteroak.edu.

COSC Policies, Course Policies, Academic Support Services and Resources

Students are responsible for knowing all Charter Oak State College (COSC) institutional policies, course-specific policies, procedures, and available academic support services and resources. Please see COSC Policies for COSC institutional policies, and see also specific policies related to this course. See COSC Resources for information regarding available academic support services and resources.