Overview

This course is best suited for individuals currently in the healthcare sector, as a provider, payer, or administrator. Individuals pursuing a career change to the healthcare sector may also be interested in this course. In this course, you will have an opportunity to explore concepts and topics related to accounting and finance basics for healthcare organizations. After an introduction to the financial statements of healthcare entities, you will then learn how to read, interpret, and use a financial statement in order to understand the financial health of an organization. Your attention will be primarily focused on the Balance Sheet and Income Statement and basics surrounding revenue and expenses. This course will tie together the financial elements learned, to the risks facing healthcare entities, as the industry continues to evolve from the COVID 19 pandemic and its resulting impact on labor, supply chain expenses, and value-based care reimbursement models. Throughout this course, you will be given the opportunity to evaluate your understanding through engagement in course discussions, application of course concepts to a course assignment, and through completion of content quizzes along the way.

Syllabus

Overview of Health Market Actors

In this module, we will explore the complexity of the healthcare industry by learning about the various actors involved. The healthcare industry is diverse and made up of government, providers, health plans, employers, and the pharmaceutical industry. Understanding the role of each actor and the factors that drive the cost of healthcare is essential for patients, healthcare providers, and other stakeholders in the industry.

Overview of Financial Statements

Financial statements are crucial documents that are used to provide information about a company's financial performance and position. The 5 main financial statements are: Management Discussion & Analysis, Balance Sheet, Income Statement, Statement of Cash Flows, and Notes to financial statements. The financial statements are critical tools that provide valuable insights into a company's financial performance and position. In this module, we will explore these statements in greater detail and discuss the importance of these documents.

Revenue

Healthcare providers play a crucial role in ensuring that patients receive quality care while also generating revenue. The healthcare industry is divided into three primary market segments - commercial, Medicare, and Medicaid - each with its own reimbursement rate. In this module, you will explore these market segments in closer detail. You will also compare various reimbursement models used to pay doctors and hospitals - including capitation.

Expenses

Expense management is also a critical component of the healthcare industry as expenses in an income statement represent the costs of doing business. These expenses must be closely monitored to ensure the financial stability of healthcare providers. In this module, you will review the major expense categories that are reported in the income statement and identify fixed and variable expenses. You will also explore depreciation expense, differentiate it from other expense line items, and reflect on its relationship to the balance sheet. Finally, you will contrast operating and non-operating income and the differences between net income and cash flow.