HSMP6610HealthCareFinancialManagement

Fall2017

Tuesday5:00pm-7:50pm

ED2North2301

Health care organizations, regardless of ownership type or mission, need to consider the financial implications of new projects and investments. There are multitudes of competing needs for capital funds and the financial viability of an organization should be an important aspect of the decision-making process. A well-managed organization will have better access to funds, whether they be grants, loans, or donations, to fund service expansions and improvements. In this course students will learn how to budget, assess various capital investment opportunities, and interpret financial statements. In doing so, students will gain an in-depth understanding of the finances of health care organizations, the workings of capital markets (bond and equity), asset valuation techniques, financial decision-making based on pro forma analyses, and lease versus buy decisions. In the course I stress that the financial analyses are only part of the decision- making process and discuss ways of incorporating mission-based and strategic objectives that are more difficult to quantify. Students will master these techniques and be able to apply them in a variety of health care settings.

Matthew W. Dyer, HEMBAAvailability: I’m generally available by phone any day

Colorado School of Public Healthfrom 8:00am-9:00pm. If I do not answer leave a

Health Systems, Management, and Policymessage and I will return your call. I am free to meet

E-mail:n person if it is planned a couple days in advance.

Phone: 303-547-6982

Rose Y. Hardy OfficeHours: Tuesday 11:00-12:00

Ph.D.Candidate Thursday11:00-12:00 (Except 11/23)

ColoradoSchoolofPublicHealth

HealthSystems,Management,andPolicyThirdFloorBuilding500OfficeE3332

E-mail:

Phone:460-360-5547

RequiredTexts: Gapenski,L.C.andG.H.Pink,2015UnderstandingHealthcareFinancial(UHFM)Management,SeventhEdition(orSixthEdition),Washington,D.C.:AUPHA*.

Gapenski,L.C.andG.H.Pink,CasesinHealthcareFinance,FifthEdition**

Gapenski,L.C.2009FundamentalsofHealthCareFinance(1stEdition),Washington,D.C.:AUPHA.Onreserveinlibrary(FHF).Recommendbuying secondhandfirsteditionavailableonline.Usedonly3-4weeksbutausefulreference.

*6theditionischeaperbuttherearesomedifferencesbetweentheChapterNumbersbetweenthe7thand 6thEditions.Iwillreferto7thEditioninclassbutalsoindicatetheappropriatechapterforthe6thedition

**Onlyoneneededpergroup(Irecommendthatyoupitch-inintheinterestofkeepingtextbookcostsdown)

This course covers the following HSMP Core competencies:

1.Explaintheeffectsofmarketsandpoliticalprocessesontheorganization,financinganddeliveryofpublicandprivatehealthservicesintheU.S.system. (CR-HSMP1)

2.Distinguishbetweenmodelsusedforfinancinganddeliveringhealthcare.(CR-HSMP3)

3.Assesskeytenetsofeffectiveorganizationalandfinancialmanagementand understandthestrengthsandlimitationsofdifferentmanagementapproachesforimprovingpopulationhealth.(CN-HSMP4CN-HSM4)

4.Applyprinciplesofaccounting,budgetingandfinancialdecisionanalysisinpublichealthandhealthcaresettings.(CN-HSMP7CN-HSM7)

5.Examineattributesofstrategicleadership,includingtheuseofvision,mission,values,goalsandobjectives.(CN-HSMP8CN-HSM8)

Thiscourseisalsofocusedondemonstratedmasteryofthefollowingcourseobjectives:

1)Createandinterpretabudget usingaspreadsheet;

2)Understand,evaluate,andcalculateanorganization’scostofcapital;

3)Evaluateleaseversusbuydecisions;

4)Conductproformafinancialanalysestoinformcapitalinvestmentdecisions;

5)Performriskandscenarioanalyses;

6)Assesswhenandhowtotakeadvantageoffinancingoptions;

7)Understandtheethicalimplicationsoffinancialstrategiesanddecisions;and

8)Createandinterpretbalancesheets,;incomestatements,andstatementofcashflow.

We willfocusontheapplicationoftheorywiththegoalofprovidingaframeworkforinformeddecision-making.Thusunderstandingandapplicationisthefocusofthiscourse.

AcademicConductPolicy

AllstudentsareexpectedtoabidetheHonorCodeoftheColoradoSchoolofPublicHealth. Unlessotherwiseinstructed,allofyourworkinthiscourseshouldrepresentcompletelyindependent

work.StudentsareexpectedtofamiliarizethemselveswiththeStudentHonorCodethatcanbefoundat ents/PoliciesHandbooks/CSPH_Honor_Code.pdf

orinthePoliciesandHandbookssectionunderStudentResourcesoftheColoradoSPHwebsite. Anystudentfoundtohavecommittedactsofmisconduct(including,butnotlimitedtocheating,plagiarism,misconductofresearch,breachofconfidentiality,orillegalorunlawfulacts)willbesubjecttotheproceduresoutlinedintheCSPHHonorCode.

AccommodationsforDisabilities

Studentsrequestingaccommodationsforadisabilitymustcontactoneofthefollowing:

SherryHolden|Coordinator

UniversityofColoradoAnschutzMedicalCampusDisabilityResourcesServicesBldg.500,RoomQ20-EG305A

Phone:(303)724-5640,Fax(303)724-5641

Part-time:Monday,TuesdayandThursday

SelimÖzi|AssistiveTechnologySpecialist,AccommodationCoordinatorUniversityofColoradoAnschutzMedicalCampusDisabilityResourcesServicesMailStopA010,Building500,RoomQ20-EG306

Phone:(303)7248428,Fax:(303)7245641

Beawarethatthedeterminationofaccommodationscantakealongperiodoftime.NoaccommodationswillbemadeforthecourseuntilwrittendocumentationisprovidedbytheDisabilityresourcesandservicesofficetothecoursedirectors.Itisthestudent’sresponsibilitytocoordinateapprovedaccommodations withtheDisabilityresourcesandservicesofficeinadvance.

Furthergeneralinformationregardingdisabilityresourcesandservicescanbefoundat: services/accommodations/Pages/accommodations.aspx

Studentscansetupanappointmentat:

CUAnschutz/Pages/form.aspx

EvaluationandCoursework

Yourgrade in this coursewill be determined by inproblem sets; cases, a midterm exam and a cumulativefinal. Each will be weighted as follows:

Class Participation10%

Cases30%

Problem Sets25%

Final Exam35%

Classparticipation:100% attendance is not required to pass, but is highly recommended. There will be many in-class small group discussions along with in class exercises. Having all students participate in class, generally and in the small group discussions, will make for a livelier and more productive learning experience. Note that if you do not attend all classes after either the Cases or the Problem Sets are due you will automatically lose 5 percentage points of the possible 10 percentages points for class participation.I understand things come up in life so if you are going to miss a class, please tell me in advance and we can work out a way to make up any points you may lose. Please put the following dates on your calendar:

9/19/17:Case3PresentationandDiscussion9/26/17:Case6PresentationandDiscussion10/10/17: ProblemSet1Discussion 10/24/17: ProblemSet2Discussion

11/07/17:Case11PresentationandDiscussion11/21/17:Case20PresentationandDiscussion12/05/17: Case24PresentationandDiscussion

Problemsets:There will be three problem sets based on the material covered in class. Feel free to ask other students questions and work together to complete the problem sets. Every student should submit their own problem set.

Be prepared to present the answers of the problem set upon request. I may randomly ask people to present their answers in class the Tuesday after the problem set is due.

Cases:There will be five cases. Each group of 2-3 students will work together to solve the case.

I will distribute questions for the cases that need to be addressed somewhere in a presentation.DONOTsimplyanswerthequestions.The questions are there to guide you as to what content needs to be covered. The answer to each question should be included as part of the presentation. But the presentation should have a natural flow and not be focused on the answers to the question. Please answer the case questions in the notes of your presentation. The presentation should address the most important points (as well as answers to the questions). The overall clarity and professionalism of the presentation will be considered in the grade. The group will present and submit one set of slides.

IMPORTANT: Be prepared to present the slides upon request. Due to the size of the class we do not have time for everybody to present. However, I will be selecting a person at random to present the case using a random generator (

FinalExam:The Final Exam is take-home. This will be an open book and open note exam. You are not allowed to consult anybody regarding the take-home portion of the exam. I will answer clarifying questions on Canvas that are submitted until the end of the day on Friday 12/09/16. I will respond to those questions by the end of the day on 12/12/16 at the latest.

GradingPolicy:There will not be a curve. However, if everybody gets an aspect of any question wrong, the question will be dropped and it will not count towards your grade. This is essentially the same as a curve and creates a reasonable and fair distribution of grades.

CourseDifficulty:Each year there are a number of students who struggle, especially at the beginning of class. If you find yourself struggling, please inform me (Matthew) or Rose Hardy. We can make suggestions about how to approach the course work and provide practice questions so you can gain confidence. This has worked well in past semesters. Often the students who are the most intimidated by the material at the beginning become the top students in the class. Those that seek extra help early are able to excel in the course. Those that wait to make it up on the final find themselves in a difficult position.

LateExamsandProblemSets:The cases, problem sets, and final exam have strict due dates. If you submit your answers late, your score will be lowered by the difference between 100 and the lowest score of the problem sets/exams that were submitted on time. For example, if the lowest score on a timely submission is 75; late exams/problem set will be penalized 25 points. This method insures that a late submission will never score better than a timely submission. In addition, because the answers will be discussed the day after the cases and problem sets are due, you will have to step out if you have not submitted your assignment. Showing up and leaving during the time we discuss the problem set means that you will avoid the 2.5 point penalty incurred if you miss the class entirely.

CourseSchedule
Week1(8/29/17) /

a.EstimatingCosts

b.Brief Biography Assignment (Due 9/2/17 @ 11:59pm) / FHF4
Week2(9/5/17) / a.Pricing Decisions / FHF 5

BeginCase#3.BigBendMedicalCenter:CostAllocation

Week3(9/12/17) / a.PricingDecisionsandReimbursement / UHFMCh.37th
b.PlanningandBudgeting / UHFMCh.26thFHF6

BeginCase#6.TulsaMemorialHospital:Break-evenAnalysisCase3Due9/18/17at11:59PM

Week4(9/19/17)a.Case3Presentations(9/19/17)

b.TimeValueAnalysisUHFM7thEdCh.4orUHFM6thEdCh.3

Case6Due9/25/17at11:59PM

Week5(9/26/17)a.Case6Presentation9/26/17

b.FinancialRiskandRequiredReturnUHFM7thEdCh.5or

UHFM6thEdCh.4

ProblemSet#1Distributed(9/26/17)

Week6(10/3/17)a.BondValuationUHFM7thEDCh.6orUHFM6thEDCh.7Part1

ProblemSet#1Due10/09/17at11:59PM DistributeProblemSet#210/3/17

Week7(10/10/17)a.ProblemSet1Discussion

b.EquityValuationUHFM7thEdCh.7orUHFM6thEDCh.7Part1

ProblemSet#2Due10/16/17at11:59PM

Week8(10/17/17)a.ProblemSet2Discussion

b.LeaseFinancingUHFMCh.8

StartCase11:Orlando Family Physicians Pay for Performance

Week9(10/24/17)a.ProblemSet2Discussion

b.LeaseFinancingUHFMCh.8

Week10(10/31/17) / a.CostofCapital / UHFMCh.9
b.CapitalBudgeting / UHFMCh.11

Case11Due11/06/17@11:59PM

DistributeProblemSet#3by11/1/17

StartCase20:CoralBayHospital:TraditionalProjectAnalysis

Week11(11/07/17) / a.Case11Presentation11/07/17
b.CapitalBudgeting(Continued) / UHFMCh.11
c.RiskAnalysis / UHFMCh.12
Week12(11/14/17) / a.RiskAnalysis / UHFMCh.12
b.IncomeStatement / FHFCh.11

Case20Due11/20/2017@11:59PM

StartCase24:St. Benedict’s Teaching Hospital Merger Analysis

Week13(11/21/17)a.Case20Presentation(11/21/16)

b.BalanceSheetsandCashFlowFHFCh.12

ProblemSet#3by11/27/17at11:59PM

Week14(11/28/17) / a.BalanceSheetsandCashFlow (continued) / FHFCh.12
b.FinancialConditionAnalysis / UHFMCh.13

Case24Due12/4/17at11:59PM

Week15(12/5/17) / a.Case24Presentation(12/5/17)
b.FinancialConditionAnalysis(continued) / UHFMCh.13
b.DistributeFinalExam(12/5/17)
c.QAonFinalexam

d.LastChanceforquestionsonthefinal:12/9/17Week16(12/12/17)a.Take-homefinalexamdue(12/12/17at11:59pm)

I will distribute the final exam before the 12/5/17 class and answer questions during class. You may submit questions electronically until 12/7/17. I will respond to all questions on Canvas by the end of the day on 12/10/17.Thiswillbeyourlastchancetoaskquestionsnoquestionsallowedafter12/7/17.