This is the most practical financial management text for those who need basic financial management knowledge and a better understanding of healthcare finance in particular. Using actual examples from hospitals, long-term care facilities, and home health agencies, this user-friendly text includes practical information for the nonfinancial manager charged with budgeting. New to the Third Edition: New chapter on "Operational Budgeting" New chapter on "The Financial Impact of Electronic Records" New chapter on "The Financial Impact of Information Input" (covers the federally mandated transition to ICD-10.) An expanded explanation of typical forms and terms of financing and equity New Mini-Case Study "A Facility's Conversion to Electronic Records" Thoroughly updated instructor supplements including PowerPoints, Excel Spreadsheets, and Instructor's Manual

Table of Contents
Ch. 1 Introduction to health care finance 3
Ch. 2 What does the health care manager need to know? 11
Ch. 3 Assets, liabilities, and net worth 25
Ch. 4 Revenues (inflow) 29
Ch. 5 Expenses (outflow) 39
Ch. 6 Cost classifications 47
Ch. 7 Cost behavior and break-even analysis 57
Ch. 8 Staffing : the manager's responsibility 73
Ch. 9 Reporting 85
Ch. 10 Financial and operating ratios as performance measures 93
Ch. 11 The time value of money 101
Ch. 12 Comparative data, forecasts, and benchmarking 113
Ch. 13 Budgeting and variance analysis 125
Ch. 14 Capital expenditure budgets 135
Ch. 15 Business loans and financing costs 149
Ch. 16 Owning versus leasing equipment 155
Ch. 17 Putting it all together : creating a business plan 163
Ch. 18 Case study : metropolis health system 173
Ch. 19 Mini-case study 1 : proposal to add a retail pharmacy to a hospital in the metropolis health system 193
Ch. 20-A Mini-case study 2 : changing economic realities in the health care setting : a physician's office teaching cases 199
Ch. 20-B Mini-case study 2 : changing economic realities in the health care setting : a physician's office teaching cases 207
Ch. 20-C Mini-case study 2 : changing economic realities in the health care setting : a physician's office teaching cases 217
Ch. 21 Mini-case study 3 : the economic significance of resource misallocation : client flow through the women, infants, and children public health program 225