Finance and Accounting for the Health care Professional

Audience: All rehabilitation professionals

Date: Friday-Saturday, Oct. 22-23, 2010

Check-in time: Oct. 228:00-8:30 a.m.
                             Oct. 23 7:30-8:00 a.m.
Class times: Oct. 22, 8:30 a.m.-5:00 p.m.
                         Oct 23, 8:00 a.m.-2:30 p.m.
Fairview Ridges Education Center, Maple Room

Contact hours: 12.25


Mark Covaleski, Ph.D., C.P.A., teaches financial management for health care professionals in a straightforward, informative and stimulating style. Mark is the Robert Beyer Professor of Accounting in the Graduate School of Business, University of Wisconsin-Madison, where he teaches health-service administration credit courses. He has taught financial management courses for medical applications for various graduate programs at the university, including nursing, pharmacy and physician administration. In addition, Mark has conducted public programs and in-house seminars for many health care organizations and associations, including American Association of Critical Care Nurses, American College of Physician Executives, Brigham & Women’s Hospital, Catholic Health Initiatives, Harvard Community Health Plan, Mayo Clinic and Northwestern Memorial Hospital.

Course description:
What are your medical facility’s vital signs? In today’s competitive health care environment, it’s essential for you to keep your finger on the financial pulse of your medical organization. In fact, your medical organization is really a specialized type of business with very specific requirements and limitations. One in which your primary deliverable is compassionate, caring and state-of-the-art treatment, but one where you still face the same types of challenges that traditional businesses do such as: increasing competition, pressures to keep costs down, expectations of excellent service, myriad suppliers, new technologies, substantial labor and insurance costs, and more. Plus, you face specialized challenges that most businesses don’t have to consider, like:
  • Changes in government funding and reimbursement rates
  • Tough negotiations with managed-care companies and other large buyers
  • Expectations that your medical practitioners will be up to date on the latest techniques and procedures, and will serve the community at large

It’s no wonder it’s tough to keep track of your facility’s vital signs and diagnose business problems before they get out of control. This interactive learning experience combines lively discussion, case studies and hands-on practice with the expertise of discussion leaders who know the ins and outs of financially managing medical practices. You’ll return to your job energized and armed with tools and techniques to make lasting, positive changes in the way you work with your financial and non-financial information.

To keep your medical organization financially healthy, you must keep one step ahead of foreseeable problems. That’s where the financial data you monitor comes in. Each bit of information you receive provides clues to the operation of your organization and you have to know how best to use it. This critical course will show you how to analyze the data you receive and turn it into indicators of the health of your organization. You’ll:
  • Discover tools that will help you set goals and determine how well they’re being met
  • Manage crucial resources like personnel costs and investments in new technologies
  • Track indicators of financial health. . . and more

Course objectives:
  • Go beyond simply monitoring financial information to interpreting and using it to plan, manage and make effective decisions specifically for your health care organization
  • More effectively communicate how your unit contributes to broader strategic objectives of your organization with your management team, administration, board of directors and lending organizations
  • Apply management accounting techniques that will allow you to assess the impact of alternate scenarios and better control outcomes
  • Recognize when you’re operating on a razor-thin margin and realize how to improve your financial position
  • Develop a consistent method for determining and allocating the true costs of your services
  • Understand the economic incentives embedded in different pricing strategies — fee-for-service, diagnosis-related group (DRG) and capitated methods — and the importance of revenue cycle management
  • Implement a balanced scorecard framework to supplement traditional financial measures and align your organization around more market-oriented, customer-focused strategies
  • Measure the impact of improvements in process flow, productivity and other system-wide enhancements to maximize efficiencies in labor use and supply management

Course agenda:
An overview of management's financial responsibilities
  • The importance of the organization’s overall financial health
  • The increasing influence of the purchasers of health care services
  • Implications for the managerial role in clinics and hospitals

Financial analysis
  • The consideration of financial information within, and as a part of, a broader set of financial and non-financial information
  • Understanding the economic vital signs of your organization
  • The importance of capital structure, liquidity and profitability as revealed by the key financial statements of your organization
  • Differences between non-profit and for-profit health care delivery systems
  • Communicating financial information within your organization
  • Using the balanced scorecard to set goals and incorporate non-financial measures that supplement traditional financial data
  • Linking long-term strategies with short-term actions
  • The interrelationship between financial statements, the strategic plan and the operating budget

Pricing for health care services
  • The importance of the payment environment (revenue sources) on income statement management
  • Incentives inherent in alternative pricing approaches
    • Fee-for-service
    • Product line and DRG pricing
    • Capitation

Managerial accounting information
  • Understanding the cost structure of your department and services
  • Important issues pertaining to the allocation of overhead and other shared resources
  • The importance of managing capacity (fixed) costs as well as volume-sensitive (variable) costs
  • Break-even analysis, cost-volume profit analysis and pro-forma projections in fee-for-service and capitated payment environments
  • Capacity management and the leveraging of fixed costs
  • Issues surrounding the leveraging of the revenue cycle

The capital budget
  • The importance of understanding your department’s capital requests within the broader strategic plan of the organization
  • The importance of “return on investment” to replenish your assets
  • Evaluating capital requests in terms of revenue enhancement and/or cost reductions for your organization

The operating budget
  • The budget process as a critical part of management responsibilities
  • Volume, revenue and cost projections
  • Variance analysis and cost control
  • Understanding variances and cost savings “across the value chain” (spending more in this department to save costs downstream)
  • Acuity-based budgeting

This course is eligible for American Occupational Therapy Association (AOTA) Approved Provider credit. The assignment of AOTA CEUs does not imply endorsement of specific course content, products or clinical procedures by AOTA.

This course has been approved for Category 1 credit from the Minnesota Board of Physical Therapy for 12.25 hours. Course approval number 4377.

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