Finance

Cost-Volume-Profit Relationships

Revenues and costs ultimately determine economic viability. The cost-volume-profit model provides participants with a comprehensive model that can be used in any healthcare setting to systematically examine the critical need to avoid operating deficits and to maintain a financially healthy organization.

• Managing and enhancing revenue
• Managing fixed and variable costs (cost drivers)
• Economies of scale
• Management decisions: process design, outsourcing, compensation, etc.
• Strategies for cost containment
• Break-even analysis
• Portfolio analysis (how do the parts come together?)
• Financial modeling and sensitivity analysis (financial planning)

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Financial Statements

Financial statements are indispensable to leaders who must respond to the financial requirements of an organization. This introductory session is designed to prepare the participants to be informed and intelligent consumers of financial information.

The topics covered include:

• The balance sheet (external reporting, internal analysis, personal financial planning, regulatory requirements, etc.)
• The accrual income statement
• Cash flow management
• Ratio analysis
• Best practices and benchmarking
• Budgets and financial planning
  

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Financial Realities for Physician Managers

• How are health care costs paid: From fee for service to prospective payment
• What are DRG's, RBRVS, and APG's - What is the impact on physicians and providers
• Health care economics - The driving forces impacting patient care
• The financial realities of non-profit organizations
• Using cost-benefit analysis as a strategic tool
• The allocation of resources: Who gets what
• How the bond market influences the financial health of a health care organizations
• Sources of capital for health care ventures

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Physicians in Management - Finance in Healthcare Organizations

• Overview of Fiscal Management
• Thinking about Solvency
• Financial Accounting—Income Statements & Balance Sheets
  
  Managerial (Cost) Accounting
  Cost-Volume-"Profit" Analysis
  Mixed Payment Systems
  Difficulties with Average Cost
  Resource Allocation—"Pulling the Plug"
  Managerial Finance
  Understanding Required Rates of Return
  Revisiting "Pulling the Plug"

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Budgeting in a Health Care Setting

This program is focused toward physician executives who have assumed significant budgeting responsibilities in their organization.

• Be able to understand the roles of the operating and capital budgets in the planning and control of organizational activities.
• Understand the manner in which the operating budget ties to income statement management and the capital budget ties to balance sheet management.
• Learn about the significance and complexity of volume projections (and the multiple versions of it such projections including relative-value units) as a starting point for the operating budget.
• Understand the concepts and methods behind the economic projections (revenues and costs) that follow from volume projections.
• Be able to then understand how these operating budget projections become a basis for a meaningful benchmark from which to compare actual results to draw meaningful inferences as to the effectiveness and efficiencies of activities and processes.
• Understand the fundamental economic calculations involved in longer term capital budget projections to understand the feasibility of asset purchases.
• Study real operating and capital budgets and case studies extracted from real organizations to illustrate actual use of these program concepts.
• Understand the manner in which budgeting ties to other non-financial data in "balanced scorecard" reporting.

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