Hospital Financial Management for the Non-Financial Manager: Tips and Techniques to Ensure Your Success
Course Description
In the first years of the 21st Century, clinical and operational managers must possess a solid understanding of the business side of the hospital and health system for which they work. Significant changes in payment systems (managed care organizations) and payment rates (reductions in Medicare and Managed Care) have created a much greater need for clinical managers to assist their executives in producing “bottom line” results. This systematic and comprehensive approach of this seminar brings into focus variables that impact directly on profitability, such as financial analysis, accounting and budgeting cycles (operating and capital assets), working capital, cash flow and productivity management. It will allow you to communicate confidently with others using financial data, thereby enhancing your professional development career as a manager. Detailed class outline and objectives are described below.
Learning Objectives Of The Two-Day Class
Understanding the differences between department manager’s views of the organization versus that of the Administration, thus allowing the manager to work with their bosses on the same level plane;
Learning to speak the specialized language of your organization’s chief financial officer, thereby improving your chances of obtaining scarce organizational financial resources for your department;
Acquiring practical insights into crucial financial elements and ratio measurements used by the Administration in formulating policy during the operating and capital budgeting cycles;
Reviewing the financial elements and methodologies needed to maximize the clinical department’s success in the annual operating and capital budgeting cycles;
Isolating those revenues and expenses in your department that are most critical to its success;
Understanding the various elements of costing and their importance to the financial health of the organization;
Using cost management techniques such as productivity measures and formularies to explain and improve various salary and non-salary expenses.
Who Should Attend
All middle and upper level non-financial department managers will benefit from this operational level seminar. There are no prerequisites for this two-day class.
Continuing Professional Education (CPE) Information
This two-day course qualifies for 14 hours of CPE Credits. The presenter is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Nashville, TN, 37219-2417. Telephone 615-880-4200.
Administrative Policies
This on-site course is offered by contract. Once signed, a 30-day notification prior to the course date is required in order to cancel the contract without penalty.
Class Outline And Objectives
Objectives of “Department Manager Versus Administrator’s View of the Organization” Section:
To understand the importance and be able to recite reasons to pay attention to the finance function in healthcare
To review the basics of healthcare accounting and finance
To gain an understanding of the reports and information that the administrator is looking at
To determine what the department manager is looking at, and
To differentiate the two perspectives…and, understand the difference between the whole and the sum of the parts.
Objectives of “Key elements of departmental financial analysis” Section:
To review the typical financial flow in a hospital
To analyze the elements of departmental finances that have the greatest impact on departmental financial performance
To differentiate between departmental and administrative reports
To perform a class exercise to determine reports that would allow the department manager to do a better job
Objectives of the “Steps in the Creation of the Hospital-wide Operating and Capital Budgets” Section:
To determine the importance of preparing the budgets
To review, in detail, the steps in the budget process, and
How these steps determine the allocation of budget dollars across the organization for operating, and capital budgets
To analyze the questions that need to be asked in the operating and capital budgets
Objectives of the “Critical Concepts in the Development of the Departmental Operating and Capital Budgets” Section:
To determine how your department fits into the Hospital-wide operating and capital budget process
To understand how to develop a department-wide strategic plan
To review detailed steps in preparing the departmental operating budget
To determine how to use the budget throughout the actual year to enhance the bottom line
To analyze hints for improving acceptance of capital budget requests
Objectives of the “Identifying Various Cost Elements Using Cost Accounting Techniques” Section:
To understand why cost accounting is important for financial analysis
To review all the financial elements of cost accounting
To develop all the cost elements at the procedure charge code level, using a case model and reviewing its inputs, throughputs and outputs
To analyze a cost accounting output report and determine how we could use it to improve department operations
Objectives of the “How to Price Services Using Cost Accounting Models” Section:
To determine the value of appropriately pricing services and how to use cost data to do so
To review the common methods for pricing services and determine which one, if any, are better
Detailed costing with allocation of overhead costs
Generalized costing with allocation of overhead costs
Objectives of the “How to Reduce Labor Costs Using Productivity Models and Measures” Section:
To determine the major components of labor costs
Using sample reports and examples, we will
Analyze the specific components that determine staff productivity and their importance in reducing labor costs
Review the part played by productivity measures and standards in determining overall staff productivity
How we can use variance analysis to make current staffing decisions
Objectives of the “Reducing Major Non-Salary Expenses Using Cost Management Techniques” Section:
To present the reasons why there is a great need and opportunity to reduce non-salary expenses
To expose the need to manage for increased accountability in the hospital setting
To specifically identify areas of opportunity for rational expense reductions
To receive more information about HCI’s professional training services, including cost details and the instructor’s scheduling availability, contact Steven Berger at (847) 362-1244.
E-mail: SBerger@hcillc.com.
