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:
- Summarize the four main elements of financial management and know how to structure the information flow to make a financial management system work.
- Explain the differences in and know how to group sources of healthcare revenue (Medicare, Medicaid, private insurance, uninsured payments) for planning and control.
- Illustrate distinctions between expense and cost, and explain where to place individual items under these categories.
- 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.
- Critique a budget using common sizing and trend analysis tools and the key role played by assumptions in budget forecasts.
- 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.
- Explain the use of the Pareto rule and apply the financial principles learned in this course to a global problem facing healthcare.
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
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2 | 2 | Topics: Assets, Liabilities, Net Worth, Revenues, Expenses and Cost Classifications
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3 | 2, 3 | Topics: Cost Behavior and Break-Even Analysis, Inventory and Depreciation, Staffing
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4 | 4 | Topics: Reporting, Ratios, Time Value of Money
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Midterm Exam | |||
5 | 4 | Topics: Common Sizing, Trend Analysis, Forecasted Data and Comparative Data
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6 | 5 | Topics: Operating Budgets and Capital Expenditure Budgets
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7 | 6, 7 | Topics: Variance Analysis, Sensitivity Analysis, Estimates, Benchmarking, Other Tools & Data Analytics
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8 | 1 - 7 | Topics: Understanding Investment Terms, Business Loan, Financing Costs, Owning Versus Leasing
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Final Exam | |||
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.