Financial Management in Healthcare

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8/13/2019 Financial Management in Healthcare

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FinancialManagement

inHealthcare

BasicToolFornonfinancialmanager

Heru Adi Praset a SE. MM. Ak.


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HospitalsareregisteredwiththeAmerican

HospitalAssociationasone

o

t e

o ow ng:

TypeDescription

1. General:Providepatientservices,diagnosticandtherapeutic,for

avariety

of

medical

conditions

2. Specialty:Providediagnosticandtreatmentservicesforpatients

,nonsurgical

3. Rehabilitationand

Chronic

Diseases

:Provide

diagnostic

and

treatment services to disabled individuals re uirin restorativeandadjustive services

4. Psychiatric:Providediagnosticandtherapeuticservicesforpatientswhorequirepsychiatricrelatedservices

Hospitalsareorganizedaspublic(nonfederalandfederal),investorowned,andnotforprofitentities.


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Elementsof

Financial

Mana ement

Planning

DecisionMaking

Organizingand

Directing


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Financial


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ManagersViewpointManagersViewpoint

TheFinancial

Views

1. Workwithfinanceonadailybasic

.

functions

3. Usuallyalsodostrategicplanning


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ManagersViewpoint

TheClinical

Views

. sua ywor w n erac rec yw

patient2. Responsibleforservicedelivery

3. Alsoresponsibleforclinicaloutcomes


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ManagersViewpoint

ProcessViews

1. Workwiththesystemofthe

2. Responsiblefordataaccumulation

3. Oftenaffiliation withthe

n orma onsys em eper men


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Foursegmentthatmakea

systemWork

.

2. InformationSystem

3. TheAccountingSystem

. e

epor ng

ys em


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.

2. RiskAversion

3. Time

Value

of

Money

4. Control ofOpportunityCost


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,

EquityandRevenue

Debit CreditIncrease

Credit

DebitDecrease


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generalledger

Reviewsadjust

balance

through

to

trial

a ance


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,

Patients,In

Patient,

etc

,

Operational(Qualityandsafety)

Annua Yearan Report:F nanc a report,

QualityandSafety


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differencesinitChartofAccountsthatexpressestheunique

erences n sownor anizationstructure


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HospitalRevenues

Typically,hospitalsgettheirrevenueinavariety

ofways:

1. Byprovidingmedicalservices

2. B

rovidin

nonmedicalservices

3. Throughdonationsandgrantsfrom

,

,

4. Throughinvestments


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Hospitalsgroupthewaytheymakemoneyinto

t ree

erentcategor es

GainsandLosses

NonOperatingRevenue

Revenue


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HospitalExpenses:

providepatient

care.

The

main

categories

of

1. Salaries,

employ

benefit

2. Suppliesandother

3. Depreciationandamortization,

4. interest,and

5. baddebtex enses.


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SourcesofHospitalFinancial

ere

are

t ree

ma or

nanc a

statements:

1. The

income

statement2. Thebalancesheet

.


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Thereareseveralmajorelementsona

1. Assetsareeconomicresourcesthatareexpectedtoprovidefuturebenefitsbyhelpingtoincreasecashinflows

orreduce

cash

outflows.

Property,

plant,

and

equipment

(PPE)areconsidere assets.

2. Liabilitiesareeconomicobligationsoftheorganizationtooutsiders,orclaimsagainstitsassetsbyoutsiders.

Accountspayable

is

as

example

of

ahospital

liability.

3. Netassets,fundbalance,orownersequityarealldifferentnamesforthesamething:theyallrefertotheresidualinterestin,orremainingclaimsagainst,the

organ za on s

asse s

a er

a

a es

ave

een

deducted.Thismaybeexpressedas:assets liabilities=netassets.


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STATEMENTOFCASHFLOWS

CASHFROMOPERATINGACTIVITIES

NetIncome 10,645

NoncashExpenses

(Depreciation

&

Amortization)

13,152

WorkingCapitalChanges:

,

IncreaseAccountsPayable4,295

TotalCashfromOperatingActivities$25,982

Property,Plant,andEquipmentPurchases7,854

IncreasesorDecreasesinMarketableSecurities2,702

CASHFROMFINANCINGACTIVITIES

Issuanceor

Repayment

of

Long

Term

Debt

7,087

TransferstoandfromAffiliates4,300

NETCHANGEINCASH$9,443


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Financial Management in Healthcare

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