Module 3 – Healthcare Financial Management

Module 3 – Healthcare Financial Management


Welcome to the Finance module. We’re excited to
have you, and we hope that you’re
excited to be here. I’m professor Joy
Volarich, and I’ll be working with my colleague,
Professor Jeff Helton, to walk you through this module. I’ve spent roughly 20 years
in the health care industry, primarily on physician
practice management. And about seven years ago,
I moved over to academia, and I teach health care finance. We designed this course to
help you better understand all of the different revenue and
expense components in a health care facility. In my portion of
the course, I’ll be walking you through the
different expense components. So we’ll be focusing on
clinical staffing models, personnel expenses,
supply and drug expenses, how those are generated, and
how those all come together in a health care facility. What I’d really like you
to get out of the course is I don’t want you to be
a finance professional. You can breathe a sigh
of relief over that. But what I want
to happen here is, when you’re sitting in
meetings with colleagues and financial topics come
up, I want you to really have a good sense of what
they’re talking about. I want you to be able to
take the information that you learned in this class and
apply it to decision making, so that you can become a
leader in your organization. I’m professor Jeff
Helton, and I will be talking to you about the
part of health care finance that involves getting paid. Pretty important to us, right? My background, I’m a
former health system chief financial officer
with over 25 years experience working in
health care organizations, generally, that had gone into
bankruptcy or receivership, and I helped bring them out. And one of the things
that was very important in those experiences is helping
the organization get paid. And so hopefully, I can share
some of those experiences with you over the
next few units. And you’ll take away
from this experience a much better understanding
of how organizations get paid in health
care, because it’s not like going to a grocery store
where you buy a can of beans or a bag of flour off the shelf. You give them a credit
card or some cash and it’s all settled up. But instead, you’ll
provide services today and wait 30, 60, 90 days
or more to get paid. And so it’s very important that
you do things the right way to get paid promptly
the amount that you’re owed for the services
that you provided. And there are
different mechanisms that we use to get paid. Very much like when
you go to a restaurant, you can buy services a
la carte– individually– or you buy a combo plate. We’ll talk about that. And we’ll talk about the
different sorts of ways that those payment
mechanisms influence the way you manage
an organization and how you can maximize
the amount of revenue that you collect in
your organization, depending on how you’re paid,
because that will influence how you run your organization. And we’ll wrap up with
talking about health reform, a new change in the
health care industry, and it’s going to
influence some of the ways that you’ll do
things in the future, and bring all that together
so that you understand the importance of finance in
the big picture of managing a health care organization, and
help you do the best job you can to manage a health
care organization.

Daniel Yohans

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