Essentials of Health Care Finance 5e / Edition 5

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Completely updated and revised chapters to reflect recent developments! This new edition covers financial management of hospitals and other health care organizationscomplete with financial information in management decision making, and planning and control. Written in easy to understand language, Essentials of Health Care Finance, Fourth Edition is provided with illustrations and examples to relate theory and practice. Two new chapters cover working capital management and cash budgeting. Instructor's Manual is available.

The book contains black-and-white illustrations.

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Editorial Reviews

From The Critics
Reviewer: Craig A. Pedersen, PhD (Creighton University)
Description: This is the fourth edition of a comprehensive textbook targeted at students of healthcare management and executives in the industry. It weaves the disciplines of accounting, finance, and economics into a treatise that guides decision makers in the changing healthcare marketplace.
Purpose: The purpose of this text has remained the same since the first edition was published in 1978. It is designed to provide a relevant and readable text for healthcare management students and executives. The author addresses a critical need in the area of healthcare finance.
Audience: This text is written for healthcare management students and executives. Practitioners would also benefit from this book by further understanding the dynamic forces facing executives in the healthcare industry. The author is a credible authority in the area.
Features: The quality and pertinence of illustrations is excellent. Most useful are the detailed examples provided in each chapter. At the end of each chapter, assignments and solutions are provided that supplement learning. A welcome feature is a complete and useful index. Perhaps the only disappointment is the lack of references.
Assessment: This text should be included in the curriculum of all healthcare administration and management students. It assumes basic knowledge of accounting, finance, and economics. Critical concepts are presented in an easy-to-understand manner. No university with programs in the health professions, public health, or health administration should be without this text in its library. Additionally, this book should be in the library of all health care organizations (providers, institutions, and payers) serious about efficient financial management. Clinicians would also benefit from the comprehensive nature of the text. Suggestions from university faculty who adopted the third edition were used to improve this edition. It is worth replacing the previous edition on your bookshelf.
From The Critics
This textbook for students of financial management and health care administration focuses on the mechanics of financial analysis and the process of informed decision-making. It outlines the common forms of ownership in the industry, reimbursement methods, legal and regulatory issues, revenue sources, financial functions within an organization, direct and indirect costs, and debt and equity financing. The authors are associated with The Ohio State University. Annotation c. Book News, Inc., Portland, OR (
A text for students and executives in health care management, blending topics of accounting and finance to cover those types of financial decisions that health care executives are most likely to be involved with. Coverage includes the economic environment of health care firms, managed care, financial reporting, financial analysis and planning, managerial cost accounting, capital budgeting and formation in both taxable and voluntary nonprofit situations, and cash budgeting. Comparative financial and operating benchmark values are included for hospitals, HMOs, nursing homes, and medical groups. Includes chapter exercises and worked solutions. Annotation c. by Book News, Inc., Portland, Or.

4 Stars! from Doody
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Product Details

  • ISBN-13: 9780834220959
  • Publisher: Jones & Bartlett Learning, LLC
  • Publication date: 4/28/2002
  • Edition description: 5TH
  • Edition number: 5
  • Pages: 475
  • Product dimensions: 8.58 (w) x 11.18 (h) x 1.14 (d)

Table of Contents

Ch. 1 Financial Information and the Decision-Making Process 1
Ch. 2 Financial Environment of Health Care Organizations 13
App. 2-A Sample UB-92 Form and Sample CMS-1500 Form 35
App. 2-B List of Diagnosis-Related Groups (DRGs), Relative Weights, and Number of Medicare Discharges in Fiscal Year 2000 38
Ch. 3 Legal and Regulatory Environment 49
Ch. 4 Managed Care 75
Ch. 5 General Principles of Accounting 103
Ch. 6 Financial Statements 118
Ch. 7 Accounting for Inflation 139
Ch. 8 Analyzing Financial Statements 154
Ch. 9 Financial Analysis of Alternative Health Care Firms 181
Ch. 10 Strategic Financial Planning 203
Ch. 11 Cost Concepts and Decision Making 227
Ch. 12 Product Costing 255
Ch. 13 The Management Control Process 277
Ch. 14 Cost Variance Analysis 300
Ch. 15 Financial Mathematics 322
Ch. 16 Capital Project Analysis 336
Ch. 17 Consolidations and Mergers 360
Ch. 18 Capital Formation 380
Ch. 19 Working Capital and Cash Management 407
Ch. 20 Developing the Cash Budget 422
Glossary 433
Common Health Care Financial Management Acronyms 451
Index 459
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