Department of Public Administration



HSMP 587: Health Care Financial Management

Winter 2020

Portland State University

Division of Public Administration

Class Meeting: Thursday 4:00-6:30pm, SRTC 162

Professor: Neal Wallace, Ph.D.

Office: 670L CUPA Building

Contact Info: Ph: (503) 725-8248, Fax: (503) 725-8250, email: nwallace@pdx.edu

Office Hours: Tuesday, Wednesday 2:00-3:00pm, other times by appointment

Course Description:

This course fulfills core requirements for the Health Management and Policy track of the OHSU-PSU MPH program and as a health elective for the MPA: Health Administration program. The purpose of this course is to provide students with an understanding of the fundamentals of financial management principles and their use and application within the health care sector. Financial management is often confused with “bean counting”. While “counting beans” provides the foundation for sound financial management, it is the appropriate strategic application of this information that defines “true” financial management. Financial concerns pervade all aspects of an organization’s activities including basic decisions of what, how, and how much of any good or service to provide. Sound financial management assures that these choices are made in a manner that most effectively reflects and promotes an organization’s values and objectives. The course does not require any specific preparation in economics or mathematics, but some basic economic theory and mathematical applications are included in the coursework.

Prerequisites:

HSMP 574 Health Systems Organization.

Course Competencies:

As a result of participation in this course, students should be able to:

• Understand the ethical basis of sound financial management.

• Use of EXCEL for financial reporting, modeling and analysis.

• Develop, interpret and analyze budgets and financial statements.

• Develop, interpret and analyze allocations of production costs.

• Understand the value, issues and techniques of managing production costs.

• Understand types of external short and long-term financing and the financial implications of financing choices.

• Understand the types of reimbursement mechanisms prevalent in healthcare, the risks and opportunities inherent in them and their implications for the organization of production.

Evaluation:

Students will be evaluated on their ability to articulate the financial management concepts presented and their application to health care services and organizations. There will be a take home mid-term and a take home final exam. Graded problem sets and in-class exercises will be provided to develop familiarity and facility with the ideas and techniques addressed in class. Final grades will be determined based on the following three areas and their relative weighting:

Completed problem sets (6) 10%

Mid-term exam 40%

Final exam 50%

Exams and problem sets are expected to be completed on time. Failure to do so will be penalized.

Student Code of Conduct

In a graduate level course, students are clearly expected to do their own work, as stated by PSU policy. Plagiarism and other forms of academic dishonesty will result in the grade of zero for the work involved and may, based on the judgment of the instructor for the particular case, result in the grade of “F” for the course and/or referral to the University for further action. To learn your rights and responsibilities as a member of the Portland State community (even if you are taking a single class at PSU), please review the Student Code of Conduct that describes behavior for which a student may be subject to disciplinary action ().

Accommodation for Disabilities

If you have a disability and are in need of academic accommodations, please notify me immediately to arrange needed supports. As a PSU student, you should register with the Disability Resource Center. Any need for accommodation will be kept in confidence.

Required Texts (Available in PSU Bookstore):

William N. Zelman et al Financial Management of Health Care Organizations 2nd Edition, Blackwell Publishers, Malden MA, 2003.

***Syllabus, problem sets, answers, tests will be available online at

Reading and Assignments:

January 9 -- Financial Management, Accounting and its Application in Health Care and Health Care Management

***Problem Set #1***

Chapter 1: The Context of Health Care Financial Management

Chapter 3 – Principles and Practices of Health Care Accounting

January 16 - Budgeting Overview, Statistics/Expense/Revenue Budgets

***Problem Set #2***

Chapter 10 - Budgeting

January 23 – Cash and Capital Budget

***Problem Set #3***

Chapter 5 – Working Capital Management

January 30 – Budget Variance Analysis

***Problem Set #4***

February 6 – Time Value of Money, Capital Planning Analysis, Midterm review

***Take Home Mid-Term Hand-Out***

Chapter 6 - Time Value of Money

Chapter 7 – The Investment Decision

February 13 – Financial Statements and Analysis

***Take Home Mid-Term Due***

Chapters 2 – Health Care Financial Statements

Chapter 4 – Financial Statement Analysis

February 20 – Cost & Cost Allocation

***Problem Set #5***

Chapters 11 - Responsibility Accounting

Chapter 12 – Cost Finding Methods

February 27 – Production Cost Management and Analysis

***Problem Set #6***

Chapter 9 – Using Cost Information to Make Special Decisions

March 5 – Provider Payment Systems

***Problem Set #7***

Chapter 13 – Provider Payment Systems

March 12 – Financing & Investment Decisions

***Take Home Final Exam Hand-Out***

Chapter 8 – Capital Financing for Healthcare Providers

March 19 -- ***Take Home Final Exam Due***

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