King Abdulaziz University Faculty of Economics and Administration Master of Health Services Administration Healthcare Finance (HSAE 623) Course Outline 2015 Term 1 Course Number: HSAE 623-JA1 Semester and year offered: Term 1/2015 Course level: Master's Instructor: Dr. Suha M. Alawi Office Number: 2224A E-mail: salawi@kau.edu.sa Term/year Term1/2015 Office hours: 10-12:30 & 1-2:30M&W Course Description The healthcare environment today places increased emphasis on the financial implications of both managerial and clinical decisions. This emphasis, in turn, has created a need for financial skills among many clinicians and managers that in the past have not been required to have such skills. This course is intended to provide students with an introduction to healthcare finance. The course consists of lectures, readings, examinations, and casework. The lectures are designed to introduce and reinforce the concepts presented in the readings, while the cases are designed to give students the opportunity to apply finance concepts to real world healthcare organizations. Student learning will be evaluated by two examinations in addition to the casework. 1
Course Objectives The main objectives of the course include: 1. To introduce the student to the theory and principles of healthcare finance, which includes both accounting and financial management? 2. To go over the unique features of the healthcare industry that affects the application of finance theory and principles. 3. To get the student familiar with healthcare finance concepts terminology, classifications, methods and trends 4. To create an open platform where student can discuss the key topics of healthcare finance and articulate their views in a professional manner 5. Demonstrate an understanding of the functions of the financial team and chief financing officer of a given health organization. Course Outcome At the end of this course, students should be expected to achieve the following: 1. Knowledge of the various objectives and functions of financial management. 2. Understand the relationship between Finance and Economics and Accounting. 3. Understand and explain the Risk and Return Trade off. 4. Relate the previous knowledge of accounting into financial decision-making. 5. Calculation of different types of Ratios and Financial decision making. 6. Calculation and Knowledge of operating and financial leverage and Break-even Analysis. 7. Knowing the concept of Time Value of Money. 8. Understand the Idea of the Cost of Capital and how to Calculate it. Method of Teaching and Learning 1. Class contact hours will include both lecture and discussion. 2. Pre-reading is required for each class and class participation 3. Class participation by using the I Pod, I phone system or notebook to connect to the web (Inter active learning) is encouraged. 4. Financial issues and terms are analyzed through linking with current issues, exercises and practical problems. 5. Using specific Financial Site for preparation and searching. 6. Students will be expected to make use of online learning resources and published material. 7. Financial Calculators are introduced to the students and encouraged to be used. 2
Course By-Laws 1. Attendance of classes is very important to grasp the subjects. 2. Respect the time of the lecture. 3. Time of the lecture is valuable as Money. 4. Reading and studying from the book is very important. 5. Do not depend on the Power Point only. 6. Reading and preparing before class will facilitate your understanding. 7. No mobiles are allowed to be used as calculators during Exams. 8. Written Calculations are very important at Exams even if it is MCQ. 9. Cheating at the Exams cause Flunking the Course. 10. No Make- Up Exams. Assessment Methods Assessment Item (including exams held in the exam period) Mid 1 Due Date of Assignments Weighting (Total to equal 100%) 30% 14-1-1436 / 7-11-2014 Project and case studies 25 % 28-2-1436 / 20-12-2014 Assignments Will be announced on class 5% Final Examination 12-3-1436 / 3-1-2015 40% Text Book Healthcare Finance: An Introduction to Accounting and Financial Management, by Louis C. Gapenski. Published by: Health Administration Press, 5th edition, (2012). 3
Course Calendar, lecture topics and Timetable Term 1/2015: : 15:00 PM 17:50 PM : 9-11:50 PM Timetable for distributing Theoretical course contents Week Date Subject Remarks 1 24-11-1435 / 19-09-2014 Provide general information about the course and distribution of course outline. Introduction to healthcare finance Formalizing of groups Chapter 1 2 25-11-1435 / 20-09-2014 30-12-1435 / 24-10-2014 1-1-1436 / 25-10-2014 Financial Environment Chapter 2 Hajj Holiday Financial Accounting: 1) The Income Statement and Statement of changes in equity. Chapter 3 2) The balance Sheet and Statement of Cash Flow Chapter 4 3 14-1-1436 / 7-11-2014 15-1-1436 / 8-11-2014 Ratio Analysis Chapter 17 Managerial Accounting: Chapter 5 1) Cost Behavior and Profit Analysis 4
Timetable for distributing Theoretical course contents Week Date Subject Remarks 28-1-1436 / 21-11-2014 Midterm Exam (3pm-5pm) 4 2) Cost Allocation Chapter 6 29-1-1436 / 22-11-2014 13-2-1436 / Pricing and Service Decisions Chapter 7 5 5-12-2014 Planning and Budgeting 14-2-1436 / Chapter 8 6-12-2014 Time Value Analysis Chapter 9 27-2-1436 / 6 19-12-2014 28-2-1436 / Project Presentation and Exam Review 20-12-2014 7 Final Exam : 12-3-1436 / 3-1-2015 5