Economics and Financial Management for Nurses and Nurse Leaders

by Susan J. Penner RN, MN, MPA, DrPH, CNL

Overview

Written by and for nurses, this key foundational text helps to build the fundamental economics and financial management skills nurses and nurse leaders need for daily use. This third edition delivers several new features, adding to its value as the only timely and relevant text written for the full spectrum of RN-to-BSN, BSN, and MSN students. It has been significantly revised to simplify content, to address the vast changes in and increasing complexity of U.S. health care financing, and to be useful in both traditional in-class format and hybrid and online programs. Two new and refocused chapters address assessing financial health and nurse entrepreneurship and practice management, and new material illuminates recent research findings and statistics. Chapters feature worksheets such as business plan checklists and text boxes expanding on key chapter content.

The book is distinguished by its provision of case examples based on nurse-run clinic and inpatient nursing unit financial issues. It provides multiple opportunities for experiential learning, such as writing business plans and health program grant proposals. It delivers cost-benefit and cost-effectiveness analyses, discusses budget preparation, offers strategies for controlling budget costs, and updates relevant health policies and statistics. The text’s engaging format promotes the synthesis of economics and finance across the nursing curriculum through the use of end-of-chapter exercises, discussion questions, and games based on concepts within the text. Additionally, tips throughout the book alert students about the need to apply concepts from other aspects of their education to economic and financial situations. Also included are online supplemental materials for teachers and students, including Excel spreadsheets, grant proposals, a test bank, and PowerPoint slides.

New to the Third Edition:

• Updates health reform, health care spending, and other relevant policies and statistics
• Includes two new and refocused chapters that address assessing the financial health of a business and nurse entrepreneurship and practice management
• Highlights recent research findings and key concepts in text boxes
• Provides blank and completed worksheets, such as business plan checklists, so nurses can apply financial concepts in their clinical settings
• Fosters understanding of key concepts with enhanced explanations and samples of business plans and other reports

Key Features:

• Aligned with AACN and AONE guidelines, the CNL certification exam, and QSEN competencies
• Serves as a primary financial management text for multiple nursing academic programs
• Facilitates experiential learning through end-of-chapter exercises, games, tips for synthesizing knowledge, worksheets, and case examples
• Designed for use in traditional classrooms and in hybrid and online learning programs
• Includes a chapter on measuring nursing care with indicators for capacity, staffing, patient acuity, performance, and patient flow
• NEW! a FREE Q&A App is availabel (see inside front cover)

Product Details

ISBN-13:	9780826160027
Publisher:	Springer Publishing Company
Publication date:	08/28/2016
Sold by:	Barnes & Noble
Format:	eBook
Pages:	446
Sales rank:	480,811
File size:	21 MB
Note:	This product may take a few minutes to download.

About the Author

Susan J. Penner, DrPH, MN, MPA, RN, CNL, is adjunct faculty, School of Nursing and Health Professions, University of San Francisco.

Table of Contents

CONTENTS

Contributors

Preface

Acknowledgments

PART I: OVERVIEW OF ECONOMICS AND HEALTH CARE

1 Economics of Health Care

Historical Context of Health Care and Nursing Economics

Health Care Costs

Health Care Economics Concepts

Economics and the Nursing Workforce

Crossword: Economics of Health Care

2 Health Insurance and Reimbursement

Health Care Coverage and the Uninsured

Health Insurance History and the ACA

ACA Timeline

Reimbursement Mechanisms

Principles of Health Insurance

Government Health Insurance Programs

Crossword: Health Insurance and Reimbursement

3 Managed Care and ACOs

Historic Foundations of Managed Care

Principles of Managed Care

Provider Reimbursement Mechanisms

Problems With Managed Care

ACOs Compared With MCOs

CMS and ACA Financing Innovations

Primary Care Utilization and Financial Measures

Performance Measures for Inpatient and Ambulatory Care

Comparing and Trending Indicators

Crossword: Managed Care and ACOs

PART II: BUDGETS AND BUDGETING

4 Measuring Nursing Care

Rules and Conventions for Reporting Indicators

Categories of Indicators

Measuring Nursing Care in a Nurse-Managed Health Center

Measuring Nursing Care in an Inpatient Nursing Unit

Crossword: Measuring Nursing Care

5 Reporting and Managing Budgets

Reporting Operating Budgets

Managing Operating Budgets

Health Center and Inpatient Unit Budgets

Crossword: Reporting and Managing Budgets

Appendix

6 Budget Planning

Budget Planning and the Nurse’s Role

Strategic Planning and Budget Linkage

Budget Forecasting

Planning the Operating Budget

Closing a Program

Crossword: Budget Planning

Appendix

7 Special Purpose, Capital, and Other Budgets

Special Purpose Budget

Product Line Budget

Evidence-Informed Case Rate

Capital Budget

Cash Flow Budget

Budget Relationships and Linkage

Crossword: Special Purpose, Capital, and Other Budgets

Appendix

PART III: FINANCIAL ANALYSIS AND MAKING A BUSINESS CASE

8 Cost Finding, Break Even, and Charges

Cost Finding

Cost Allocation

Break-Even Analysis

Contribution Margin

Prices and Pricing

Classification and Coding Systems

Crossword: Cost Finding, Break Even, and Charges

Appendix

9 Comparing Costs and Benefits

Cost–Benefit Analysis

Cost-Effectiveness Analysis

Cost–Utility Analysis

Program Evaluation

Limitations of CBA, CEA, and CUA

Comparative Effectiveness Research

Crossword: Comparing Costs and Benefits

Appendix 9A Worksheets

Appendix 9B A Cost–Benefit Analysis Evaluating Adult Outpatient Asthma Education

Appendix 9C A Cost-Effectiveness Analysis for Proposed Alternative Interventions to Postprocedure Surgical Pain Reduction

Appendix 9D A Cost–Utility Analysis Evaluating Adult Outpatient Asthma Education

10 Writing a Business Plan

Writing Skills for Business Plans

Business Plan Sections

Crossword: Writing a Business Plan and Health Program Grant Writing

Appendix 10A Business Plan Feasibility Checklist

Appendix 10B A Business Plan: To Initiate the Cleaning of Hospital Privacy Curtains to Reduce Nosocomial Infections at Bay General Hospital’s 4B Progressive Care Unit

Corinne M. Allen, Whitney E. Bralye, Madeira A. Macedo, Alysia D. Porter, and Heather N. Rothhammer

Appendix 10C Respiratory Project Committee, Fairfield County Hospital

Samanthika T. De Alwis, Jasmine B. Erguiza, Candace Fleming, and Jennifer N. Ma

Appendix 10D Increasing Patient Volume at the Bay General Hospital Cardiac Clinic

Yonatan G. Breiter, Seth M. Cloues, Caitlin O. Flanagan, Alex Guevarra, and Hector E. Solano

Appendix 10E Business Plan: Probiotic Use With Antibiotics

Natalie Bower, Gehrig Y. Ertle, Emily M. Finzen, Lindsey F. Reardon, and Cassen E. Uphold

11 Health Program Grant Writing

Business Plans and Grant Proposals

Grant Proposal Sections

After the Application Is Submitted

Crossword: Writing a Business Plan and Health Program Grant Writing

Appendix 11A Worksheets

Appendix 11B Dental Care Van Grant Proposal

Angelica Holguin, Christina M. Nardi, Diane Trinh, Paige M. Weisbrod, and Sara E. Moschetto

Appendix 11C Grant Proposal: Decreasing High Utilizers of the Emergency Department

Alexandra Carr, Caramia O. Perlas, Deborah B. Rosenberg, and Asja Serdarevic

Appendix 11D Incorporating Massage and Healing Touch Therapies on a Specialized Nursing Unit at Seaview Hospital: A Grant Application

Janet A. Giachello and Jennifer A. Schmid

PART IV: ADVANCED TOPICS

12 Assessing Financial Health

Hospital-Wide Indicators

Accounting Concepts

Financial Statements

Crossword: Assessing Financial Health, and Entrepreneurship and Practice Management

Appendix

13 Entrepreneurship and Practice Management

Starting a Nurse-Run Business

Principles for Practice Management

Nurse Entrepreneur Resources

Crossword: Assessing Financial Health, and Entrepreneurship and Practice Management

Appendix

14 Ethical Issues and International Health Care Systems

Bioethics and Health Economics

International Health Economics and Financing

Crossword: Ethical Issues and International Health Care Systems, and Health Policy and Future Trends

Appendix

15 Health Policy and Future Trends

Health Policy Questions

Future Trends

Keeping Up to Date

Crossword: Ethical Issues and International Health Care Systems, and Health Policy and Future Trends

Appendix

Glossary

Resources

Crossword Puzzle Answer Key

Index

Editorial Reviews

Reviewer: Patrick Albert Palmieri, DHSc, EdS, MBA, MSN, MSc (c)(A. T. Still University)
Description: This update of an obsolete 2003 financial management book has been significantly revised to incorporate contemporary information about payment systems and a new chapter specific to nursing management.
Purpose: It is intended as a primer in healthcare economics and financial management with evidence-based content relevant for practicing nurses. It includes the objectives and competencies from three professional organizations: American Organization of Nurse Executives (AONE) Nurse Executive Competencies; American Association of Critical-Care Nurses (AACN) Financial Management in Healthcare Training; and American Association of Colleges of Nursing (AACN) Clinical Nurse Leader Examination.
Audience: The book is written for undergraduate and graduate nursing students in a variety of nursing programs, including traditional, hybrid, and online distance courses and programs. However, the book appears to be best suited for undergraduate nursing students, nursing supervisors, and novice nurse managers seeking to develop additional competencies, skills, and knowledge in financial management applicable to nursing units and departments. The author is a widely respected academic, experienced educator, and seasoned management practitioner.
Features: The 14 chapters are organized into four sections that provide an overview of economics and healthcare (three chapters); budgets and budgeting (four chapters); financial analysis and making a business (four chapters); and advanced topics (three chapters). Chapters are well formatted beginning with a quotation specific to the chapter material, four learning objectives, and a listing of key terms, and are organized into major and minor section divisions. Key terms are in bold with definitions, and there are helpful diagrams, figures, and tables. Chapters conclude with relevant discussions and exercises, a comprehensive listing of references, and a final review crossword puzzle. There are also excellent ancillary online resources for students and comprehensive instructor resources, including Excel data files, PowerPoint presentations, sample syllabus, and teaching strategies.
Assessment: This is an excellent book for an undergraduate nursing program and this second edition is a remarkable improvement over the first. The core chapters in the first two sections are outstanding contributions, well referenced with meaningful resources, and relevant to the real healthcare environment. The chapters specific to health program grant writing, health policy, ethical issues, and international healthcare systems seem better suited for a general nursing management and/or leadership book. Finally, the chapter on financial statements and the nurse entrepreneur is mislabeled as there is only one page specific to starting one's own business or agency, which also seems to be outside the scope of the book. The title probably should not include the phrase "nurse leaders," as this does not appear to be the intended audience. This book addresses a different audience than two other notable books focused on financial management: Financial Management for Nurse Managers and Executives, 4th edition, Finkler et al. (Elsevier, 2013), and Financial Management for Nurse Managers: Merging the Heart with the Dollar, 2nd edition, Dunham-Taylor and Pinczuk (Jones & Bartlett, 2009), which are excellent choices for advanced nursing courses, graduate programs, and working nursing managers.

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