Financial Management of Healthcare
Full course description
This unit offers an introduction to the field of healthcare financial management and the application of financial management tools for innovations in Healthcare organisations. The leading question throughout this unit is how managers in enterprising healthcare organisations can plan, organise, allocate, monitor, control, and manage the financial resources available within their organisations in an effective and efficient manner given the specificities of their organisations and the constraints posed by the external environment (e.g.external funding). During this unit, you will become acquainted with the theory and innovative methods of financial management, and you will develop management skills in this area. The following issues relevant to healthcare managers are discussed during the unit: basic financial management concepts; analysis and reporting of costs and revenues; financial planning and control (incl. internal budgeting, financial statement analysis); external funding of Healthcare organisations (incl. the Dutch system of healthcare funding, e.g. DBCs/DOT); and financial decision-making. Particular attention is paid to (decisions about) investments in innovative technology and other innovations in care delivery. The unit is an elective unit for other master’s programmes health of the FHML.
The unit offers three trainings.
- Training 1. Cost Analysis and Budgeting. This training is for all students. You must carry out cost analysis and/or develop the operating budget of a healthcare unit. In addition, students can choose one of the following trainings (whether all students are assigned to the training of their first choice depends on the number of places that are available for each training):
- Training 2. Business Case Investments in innovative information technology. You are presented with a business case describing the need of an investment in innovative information technology. You are asked to e.g. outline feasible investment alternatives.
- Training 3. Business Case Investments in innovative healthcare technology.
Knowledge and understanding:
- To gain basic knowledge in the theory of healthcare financial management to understand the issues of cost analysis, external funding, internal budgeting, financial analysis, and investment decision-making, specifically investments in new information technology and new care delivery processes.
- To gain understanding in basic methods, models and tools that are applied in the financial management field.
Applying knowledge and understanding:
- To be able to apply basic theoretical knowledge from the field of financial management to practical management problems in the healthcare sector and to design solutions to these problems.
- To be able to analyze and understand business cases related to investments in the Healthcare sector, particularly investments in innovations.
- Can relate the acquired knowledge to the knowledge from other units.
- To develop a critical scientific attitude towards the literature and practices in the field of healthcare financial management.
- To be able to identify and make judgments about relationships between financial management and other management fields that deal with the processes of planning and control in healthcare organizations, based on the acquired knowledge.
- To be able to communicate effectively, i.e. to present arguments and advices orally and in writing with regard to managerial problems, specifically problems related to financial management.
- To develop skills to prepare written reports and oral presentations in a concise and clear manner regarding management problems.
- To develop skills to gather and analyze data and information about complex financial management problems, as well as management problems characterized with uncertainty.
- To develop skills to search for optimal solutions to financial management problems in situations characterized by limited information and/or conflicting interests of individuals and parties.
- To work with others on real-life cases in a collaborative setting.
Literature Basis textbooks: - Gruen R, Howarth A. (2005). Financial management in health services. Open University Press. - Finkler SA. (2005). Financial management for public, health, and not- for-profit organizations. 2nd ed. Pearson Education / Prentice Hall. - Zelman, E.; McCue, M; Millikan, A. (2003). Financial management of healthcare organizations: an introduction to fundamental tools, concepts and applications. 2nd ed. Blackwell Publishers. - In addition to the basic literature, an electronic reader is prepared. It includes recent articles and documents related to theory and practice.