Week1Lecture1.html.zip

Week 1 Lecture 1.html

Introduction to Healthcare Finance

Working in HCOs in the United States inevitably requires an understanding of the rudiments of finance, particularly as they relate to healthcare. All business leaders are faced with the need to understand simple concepts, such as net present value, and more complex issues, such as hurdle rate, used in selecting project alternatives. Project alternatives may range from a new magnetic resonance imaging (MRI) machine costing $2 million to building a new hospital, which might cost $2 billion. Understanding the concepts of finance allows managers to make effective decisions on a scale at which a mistake could cause the failure of the organization. It may seem obvious that a budget is important in more than one instance. How important is it though? Note that simple budgeting skills have allowed the turnaround of multibillion-dollar trust funds that enable more than 150 indigent healthcare programs to survive and have taken a hospital district from a debt of $10 million to a surplus of $4,000,000 in just six years. Though this course will not specifically cover many programs in healthcare finance, a healthcare leader should know about programs such as Upper Price Limit (UPL) or Disproportionate Care (Dispro) that greatly aid hospitals in low-income areas. Any of these programs may become important to a healthcare manager's job. A basic knowledge of the concepts of healthcare finance, as explored in this course, gives the foundation for understanding and working within these programs.

In this lecture you were introduced to the value of an effective HCO and the role of financial management in healthcare. It will discuss how to offer healthcare, from both the financial and operative perspectives, while maintaining a focus on reimbursements of healthcare services. It will also highlight the usefulness of patients' medical records that contain information on services provided and of detailed billing processes used to trigger payments and to submit patient-related information to payers under various reimbursement models.

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Week1Lecture1.html.zip

Week 1 Lecture 1.html

Introduction to Healthcare Finance

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