Competencies in Health Care Administration Co

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CGDT rev. December 2020 [Do not include this revision information in the final version of the Course Guide.]

Course Guide

MHA612

FINANCIAL & MANAGERIAL ACCOUNTING This course provides the foundation for integrating health care finance and managerial accounting.

Opportunities for analyzing current and emerging health care financing trends are provided. Practical cost-

benefit strategies used in planning, controlling and preparing internal and external reports are

emphasized.

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MHA612 FINANCIAL & MANAGERIAL ACCOUNTING COURSE GUIDE

TABLE OF CONTENTS

TABLE OF CONTENTS ……………………………………………………………………………………………………………………… 2

COURSE AT A GLANCE ……………………………………………………………………………………………………………………. 5

COURSE DESCRIPTION ………………………………………………………………………………………………………………………. 5

COURSE DESIGN ………………………………………………………………………………………………………………………………. 5

COURSE LEARNING OUTCOMES …………………………………………………………………………………………………………… 6

COURSE MATERIALS ………………………………………………………………………………………………………………………. 7

REQUIRED RESOURCES …………………………………………………………………………………………………………………….. 7

Textbook …………………………………………………………………………………………………………………………………….. 7

Navigate Simulations ……………………………………………………………………………………………………………………. 7

Supplemental Material ………………………………………………………………………………………………………………….. 7

RECOMMENDED RESOURCES ……………………………………………………………………………………………………………… 7

Articles ……………………………………………………………………………………………………………………………………….. 7

Multimedia ………………………………………………………………………………………………………………………………….. 8

Websites …………………………………………………………………………………………………………………………………….. 8

COURSE GRADING ………………………………………………………………………………………………………………………….. 9

DISCUSSIONS ………………………………………………………………………………………………………………………………….. 9

NAVIGATE SIMULATIONS …………………………………………………………………………………………………………………….. 9

ASSIGNMENTS …………………………………………………………………………………………………………………………………. 9

FINAL PAPER …………………………………………………………………………………………………………………………………… 9

GRADING PERCENT BREAKDOWN ………………………………………………………………………………………………………… 9

WEEK 1 ………………………………………………………………………………………………………………………………………….. 11

DECISION-MAKING THROUGH FINANCIAL INFORMATION ………………………………………………………………………….. 11

Overview …………………………………………………………………………………………………………………………………… 11

Weekly Learning Outcomes ………………………………………………………………………………………………………… 11

Introduction ……………………………………………………………………………………………………………………………….. 11

Required Resources …………………………………………………………………………………………………………………… 11

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MHA612 FINANCIAL & MANAGERIAL ACCOUNTING COURSE GUIDE

Recommended Resources ………………………………………………………………………………………………………….. 12

Discussions ………………………………………………………………………………………………………………………………. 13

Navigate Simulation ……………………………………………………………………………………………………………………. 14

Assignment ……………………………………………………………………………………………………………………………….. 14

WEEK 2 ………………………………………………………………………………………………………………………………………….. 16

LEGAL/REGULATORY AND REVENUE …………………………………………………………………………………………………… 16

Overview …………………………………………………………………………………………………………………………………… 16

Weekly Learning Outcomes ………………………………………………………………………………………………………… 16

Introduction ……………………………………………………………………………………………………………………………….. 16

Required Resource …………………………………………………………………………………………………………………….. 16

Recommended Resources ………………………………………………………………………………………………………….. 17

Discussion ………………………………………………………………………………………………………………………………… 18

Assignment ……………………………………………………………………………………………………………………………….. 18

WEEK 3 ………………………………………………………………………………………………………………………………………….. 19

ACCOUNTING/FINANCIAL ANALYSIS …………………………………………………………………………………………………….. 19

Overview …………………………………………………………………………………………………………………………………… 19

Weekly Learning Outcomes ………………………………………………………………………………………………………… 19

Introduction ……………………………………………………………………………………………………………………………….. 19

Required Resources …………………………………………………………………………………………………………………… 19

Recommended Resources ………………………………………………………………………………………………………….. 20

Discussion ………………………………………………………………………………………………………………………………… 21

Navigate Simulation ……………………………………………………………………………………………………………………. 22

Assignment ……………………………………………………………………………………………………………………………….. 22

WEEK 4 ………………………………………………………………………………………………………………………………………….. 23

STRATEGIC FINANCIAL PLANNING/MANAGEMENT CONTROL …………………………………………………………………….. 23

Overview …………………………………………………………………………………………………………………………………… 23

Weekly Learning Outcomes ………………………………………………………………………………………………………… 23

Introduction ……………………………………………………………………………………………………………………………….. 23

Required Resources …………………………………………………………………………………………………………………… 23

Recommended Resources ………………………………………………………………………………………………………….. 24

Discussion ………………………………………………………………………………………………………………………………… 24

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MHA612 FINANCIAL & MANAGERIAL ACCOUNTING COURSE GUIDE

Navigate Simulation ……………………………………………………………………………………………………………………. 25

Assignment ……………………………………………………………………………………………………………………………….. 25

WEEK 5 ………………………………………………………………………………………………………………………………………….. 26

COSTS AND DECISION MAKING ………………………………………………………………………………………………………….. 26

Overview …………………………………………………………………………………………………………………………………… 26

Weekly Learning Outcomes ………………………………………………………………………………………………………… 26

Introduction ……………………………………………………………………………………………………………………………….. 26

Required Resources …………………………………………………………………………………………………………………… 26

Recommended Resources ………………………………………………………………………………………………………….. 27

Discussion ………………………………………………………………………………………………………………………………… 28

Navigate Simulation ……………………………………………………………………………………………………………………. 28

Assignment ……………………………………………………………………………………………………………………………….. 28

WEEK 6 ………………………………………………………………………………………………………………………………………….. 30

CAPITAL AND DECISION-MAKING ………………………………………………………………………………………………………… 30

Overview …………………………………………………………………………………………………………………………………… 30

Weekly Learning Outcomes ………………………………………………………………………………………………………… 30

Introduction ……………………………………………………………………………………………………………………………….. 30

Required Resources …………………………………………………………………………………………………………………… 30

Recommended Resources ………………………………………………………………………………………………………….. 31

Discussions ………………………………………………………………………………………………………………………………. 32

Final Paper ……………………………………………………………………………………………………………………………….. 33

COURSE MAP ………………………………………………………………………………………………………………………………… 35

MHA612 ALIGNMENT MAP ……………………………………………………………………………………………………………… 38

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MHA612 FINANCIAL & MANAGERIAL ACCOUNTING COURSE GUIDE

COURSE AT A GLANCE

COURSE DESCRIPTION This course provides the foundation for integrating health care finance and managerial accounting.

Opportunities for analyzing current and emerging health care financing trends are provided. Practical cost-

benefit strategies used in planning, controlling, and preparing internal and external reports are emphasized.

COURSE DESIGN Timely and accurate accounting information plays a critical role in health care industry. The rapid growth of

health care facilities and governing boards has substantially increased the need for health care professionals

and decision makers to understand financial and managerial accounting information.

This course progressively builds through the six weeks to provide students with opportunities to analyze and

evaluate finance and managerial accounting in health care industry. Opportunities for analyzing current and

emerging health care financing trends are also provided.

During Week 1, students will analyze and evaluate the importance of financial information in health care

organizations and the financial environment for these organizations. The common ownership forms of health

care organization along with their advantages and disadvantages will be examined. Students will analyze and

evaluate revenue cycle for health care firms and consider the roles of coding, charge masters, and claims

editing in these cycles. Major aspects of Medicare benefits will also be discussed. This study will be done

through the assigned readings from the text, articles, discussions, a written paper, and a Navigate simulation.

There is information included on healthcare finance basics for those who may need a primer or a refresher.

Week 2 builds from Week 1 and analyzes how legal and regulatory issues shape and define good financial

management of a health care organization. Health care reform and the most common federal regulatory

issues, such as the Health Insurance Portability and Accountability Act and the Emergency Medical Treatment

and Labor Act, will be examined. Students will have the opportunity to analyze the elements of community

benefit listed by key policy groups, the basic methods of payment for health care firms, and five types of health

plans and their characteristics. The assigned readings from the text, articles, multimedia, a discussion, and a

written paper will support this week’s focus.

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MHA612 FINANCIAL & MANAGERIAL ACCOUNTING COURSE GUIDE

In Week 3 students will learn the general principles of accounting. The basic financial statements will be

discussed, and students will learn how these are used for analysis and decision making. Students will also

learn how financial analysis differs for alternative health care firms. The assigned readings from the text,

articles, multimedia, a discussion, and a written paper will support this week’s focus.

Week 4 continues to build on the previous weeks and students will learn about the strategic planning process

and how the financial side impacts the plan. Students will also learn about the controls that management uses

in the budgeting and planning process and some of the financial mathematics that are used in decision

making. The assigned readings from the text, articles, multimedia, a discussion, and a written paper will

support this week’s focus.

In Week 5 students will learn about the costing process in health care, how it relates to planning, budgeting,

and control, and how to investigate variances as they happen with costs. Students will also learn how to

determine when organizations break-even with a profit. The assigned readings from the text, articles,

multimedia, a discussion, and a written paper will support this week’s focus.

This week students will learn about capital projects and financing options for the capital expenditures, the

impact of cash on working capital management, and the success and failures of mergers and acquisitions in

the health care industry. The assigned readings from the text, articles, multimedia, a discussion, and a final

written paper will support this week’s focus.

COURSE LEARNING OUTCOMES Upon successful completion of this course, students will be able to

1. Analyze how legal and regulatory systems shape and define financial management within health care

organizations.

2. Examine the core principles of accounting that guide the preparation and dissemination of financial

information.

3. Conduct a financial analysis of alternative health care models.

4. Examine the requirements for effective financial planning and the steps involved in developing a

financial plan.

5. Assess how health care financial statements are used for budgeting purposes.

6. Evaluate capital formation strategies for health care organizations.

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MHA612 FINANCIAL & MANAGERIAL ACCOUNTING COURSE GUIDE

COURSE MATERIALS

REQUIRED RESOURCES

Textbook

Review the Navigate: How to Redeem your Access Code document for information on accessing your

textbook.

Cleverley, W. O., Song, P. H., & Cleverley, J. O. (2011). Essentials of health care finance (7th ed.). Sudbury,

MA: Jones & Bartlett Learning. Retrieved from https://www.vitalsource.com

• The full-text version of this e-book is available through your online classroom.

Navigate Simulations

Jones & Bartlett Learning. Navigate 2 Scenario – Healthcare Finance Simulation [Access Code]. Sudbury, MA:

Jones & Bartlett Learning.

Supplemental Material

Windsor Regional Hospital (2008). Hospital transformation through zero based budgeting. Retrieved from

https://ashford.instructure.com

RECOMMENDED RESOURCES

Articles

Jackson, J., & Nolan, J. (2010, March 21). Health Care Reform Bill summary: A look at what's in the Bill.

Retrieved from http://www.cbsnews.com/news/health-care-reform-bill-summary-a-look-at-whats-in-the-

bill/

Milliken, A. L. (2010). Use of volume variance– variance demand analysis in planning strategy formulation.

Journal of Business Forecasting, 29(1), 4-9. Retrieved from the ProQuest database.

Olden, P. C. , & Smith, C. M. (2008). Hospitals, community health, and balanced scorecards. Academy of

Health Care Management Journal, 4(1), 39-56. Retrieved from the ProQuest database.

Panayiotis, C. &, Roupas, T. A. (2009). Health care finance, the performance of public hospitals and financial

statement analysis. European Research Studies, 12(4), 199-212. Retrieved from the ProQuest

database.

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MHA612 FINANCIAL & MANAGERIAL ACCOUNTING COURSE GUIDE

Prepare a Cash Budget. (n.d.) Retrieved from

http://www.vainteractive.com/inbusiness/editorial/finance/ibt/cash_bud.html

Rauscher, S., Wheeler, J. R. C., & Hilleary, G. (2008). Effective hospital revenue cycle management: Is there a

trade-off between the amount of patient revenue and the speed of revenue collection? [Practitioner

application]. Journal of Health Care Management, 53(6), 392-406. Retrieved from the ProQuest

database.

Multimedia

The Center for Health Affairs. (2011, April 7). Hospital finance 101, The Center for Health Affairs [Video file].

Retrieved from https://www.youtube.com/watch?v=fwYYae_U1OI

PBS NewsHour. (2013, September 24). President Obama and President Clinton talk health care reform [Video

file]. Retrieved from: http://www.youtube.com/watch?v=JSiTlwg64lU

Websites

Accounting terminology guide. (2014). Retrieved from http://www.nysscpa.org/glossary

Claim scrubber. (n.d.). Retrieved from http://medical-dictionary.thefreedictionary.com/claim+scrubber

Health Care Financial Management Association. (http://www.hfma.org/)

Pulley, J. (2008, November 13). The claims scrubbers. Retrieved from

http://www.govhealthit.com/news/claims-scrubbers

The health care law and you. (n.d.). Retrieved from http://healthlawanswers.aarp.org

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MHA612 FINANCIAL & MANAGERIAL ACCOUNTING COURSE GUIDE

COURSE GRADING

Multiple measures of assessment are used in the course, allowing students opportunities to demonstrate their

learning in more than one way and giving consideration to individual learning styles. Course components that

will be assessed are listed below.

DISCUSSIONS Each week students will participate in online discussions with classmates, which are related to the week’s

readings. These discussions replace the interactive dialogue that occurs in the traditional classroom setting.

Each week, students’ initial discussion posts are due by 11:59 p.m. (in the time zone in which each student

resides) on Day 3 (Thursday). Students will have until 11:59 p.m. on Day 7 (the following Monday) to make the

required minimum number of response posts to classmates. Discussions represent 25% of the overall

course grade.

NAVIGATE SIMULATIONS There is a Navigate Simulation due in Weeks 1, 3, 4, and 5 of this course. The Navigate Simulations will

provide students with the opportunity to demonstrate a variety of skills through multiple assessment types

including multiple-choice responders, short answer, drag-and-drop, single paragraph composition, and short

essay. Navigate Simulations represent 20% of the overall course grade.

ASSIGNMENTS There is a written assignment due in Weeks 1 through 4 of this course. These assignments must reflect

college-level writing and critical thinking. Assignments represent 30% of the overall course grade.

FINAL PAPER The final assignment for this course is a Final Paper. The purpose of the Final Paper is for you to culminate the

learning achieved in the course. The Final Paper represents 25% of the overall course grade.

GRADING PERCENT BREAKDOWN

Activity Grading

Percent

Discussions 25

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MHA612 FINANCIAL & MANAGERIAL ACCOUNTING COURSE GUIDE

Navigate Simulations 20

Assignments 30

Final Paper 25

Total 100

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MHA612 FINANCIAL & MANAGERIAL ACCOUNTING COURSE GUIDE

WEEK 1

DECISION-MAKING THROUGH FINANCIAL INFORMATION To be completed during the first week of class

Overview

Activity Due Date Format Grading

Percent

Post Your Introduction Day 1 Discussion 1

Critical Case for Billing & Coding Day 7 Navigate Simulation 5

Ownership Forms of Health Care

Organizations Day 7

Assignment 6

Weekly Learning Outcomes

This week students will

1. Analyze the importance of financial information in health care organizations.

2. Explain the common ownership forms of health care organization as well as their advantages and

disadvantages.

3. Analyze the roles charge master and claims editing play in the billing process.

Introduction

During Week 1, you will be introduced to the financial information used by decision makers. You will learn

about the forms of business organization, the billing and coding process, and how this is critical for revenue

cycle management. You will also begin to understand the impact of the various sources of revenue on the

financial viability of healthcare organizations.

Required Resources

Text

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MHA612 FINANCIAL & MANAGERIAL ACCOUNTING COURSE GUIDE

Cleverley, W. O., Song, P. H., & Cleverley, J. O. (2011). Essentials of health care finance (7th ed.). Sudbury,

MA: Jones & Bartlett Learning. Retrieved from https://www.vitalsource.com

• Chapter 1: Financial Information and the Decision-Making Process

o This chapter discusses the importance of finance and financial information in health care

organizations, explains the users and users or financial information and summarizes the

common ownership forms of health care organization.

• Chapter 2: Billing and Coding for Health Services

o This chapter focuses on revenue cycle including medical coding, charge masters, two

major bill types and the role played by claims editing.

• Chapter 3: Financial Environment of Healthcare Organizations

o This chapter discusses factors influencing the financial viability of a health care

organization such as financial environment, major reimbursement methods and

describes major aspects of Medicare benefits along with Medicare reimbursement

methods to major types of providers.

Navigate Simulation

Jones & Bartlett Learning. Navigate 2 Scenario – Healthcare Finance Simulation [Access Code]. Sudbury, MA:

Jones & Bartlett Learning.

Recommended Resources

Articles

The health care law and you. (n.d.). Retrieved from http://healthlawanswers.aarp.org

• This web page includes questions that will help give you information that describes how the

health care law works for you and your family.

Textbook PowerPoint Presentations

• Chapter 1 Financial Information and the Decision-Making Process

• Chapter 2 Billing and Coding for Health Services

• Chapter 3 Financial Environment of Healthcare Organizations

Websites

Claim scrubber. (n.d.). Retrieved from http://medical-dictionary.thefreedictionary.com/claim+scrubber

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MHA612 FINANCIAL & MANAGERIAL ACCOUNTING COURSE GUIDE

Health care financial management association. (http://www.hfma.org/)

• This website directs students to Health care Financial Management Association which contains

current events, publications, policies and issues that will benefit students in this course.

Pulley, J. (2

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