Healthcare Finance Education

This training module focuses on a real-life case study involving fraudulent accounting that led to a $100 million adjustment in a 12-hospital system. The case study underscores the need for trustees to have a solid foundation to ask crucial questions, understand fiduciary responsibilities, and make informed decisions. The ultimate goal is to prevent financial mishaps, ensure financial integrity, and ensure the healthcare organization is fiscally sound.

This training module empowers hospital executives and board members with crucial insights into fiduciary responsibilities and governance within nonprofit healthcare organizations. It delineates trustees' legal obligations, risks, and responsibilities, exploring the three primary fiduciary duties: care, loyalty, and obedience. Additionally, the course outlines best practices for decision-making, risk mitigation, and effective governance. Guidelines and procedures for minimizing legal liability are also discussed. Engaging with this training module equips leaders to act responsibly, transparently, and in the best interests of the organizations they serve.

This training module provides a comprehensive view of a hospital's budgeting landscape, covering labor and non-labor expenses, patient care staffing levels, and other operational aspects. Now constituting over 60% of the budget, labor expenses have become more complex due to factors like patient acuity, regulatory mandates, and a tighter labor market. Non-labor expenses, including supply costs, require rigorous scrutiny for inefficiencies and waste. Trustees are urged to consider short-term gains and long-term implications in labor and non-labor costs decisions. As the budget directly impacts the quality of patient care and operational efficiency, the board's oversight is critical in ensuring that spending aligns with the hospital’s strategic goals.

The training module emphasizes the critical role of forecasting in making informed, strategic decisions for hospitals. It gives board members and executives insights into different forecasting methods and stresses the importance of multi-source involvement for a comprehensive understanding. The module also highlights the need for constant reevaluation and adjustment of forecasts to account for actual data and market changes. Furthermore, it underscores the role of scenario analytics and environmental factors, outlining pitfalls to avoid for more accurate forecasting. The overarching aim is to prepare board members to guide their healthcare institutions more effectively through a rapidly changing landscape.

This training module covers how efficient financial management and robust controls are crucial for sustainability and growth. This involves a multi-step process that includes effective planning, organizing, directing, and controlling financial activities. Financial management encompasses tasks such as regular cash flow monitoring, ensuring adequate returns on investment (ROI), and maintaining a balanced capital structure. Internal financial controls involve establishing guidelines for recording, processing, and reporting financial transactions. These controls can be broken down into The Control Environment, The Accounting System, and Control Procedures. A case study involving poor internal controls underlines the importance of well-defined roles and checks and balances. Various key financial indicators also provide insight into the effectiveness of financial systems and controls. Understanding and tracking these metrics enable organizations to make informed business decisions and facilitate rapid responses in times of crisis.

The training module emphasizes the vital role of understanding Medicare and Medicaid in a hospital's financial sustainability. From the complexities of the revenue cycle to the nuanced differences between Medicare and Medicaid, the module outlines how mismanagement can lead to severe financial risks. It covers the intricacies of different Medicare plans, their reimbursement methodologies, and the state-specific nature of Medicaid. The module also delves into the audit risks associated with both programs, highlighting the need for stringent compliance measures to mitigate financial liability. Hospital trustees are advised to regularly inquire about various aspects like third-party settlements, unsettled cost reports, and key statistics to keep abreast of the institution's financial health.

This training module highlights the crucial role that adept managed care contracting plays in a hospital's financial and operational well-being. It equips hospital trustees with insights into the intricacies of contracts with healthcare payers, the development of managed care models, and the obstacles in meeting contract obligations. The module underscores the need for effective negotiation, strategic planning, and a balanced approach to quality care and financial stewardship.

This training module educates hospital executives and board members on effective capital strategy. It details a 12-step process for capital allocation, highlighting the importance of strategic planning over basic budgeting. The module underscores the board members' obligation to make data-driven decisions that enhance long-term sustainability, operational efficiency, and alignment with organizational mission. It explores both traditional and modern approaches to capital allocation, offers methods for evaluating capital returns, and stresses the need for ongoing monitoring. The key takeaway is that all capital decisions should positively impact the organization's cash flow, creditworthiness, and mission fulfillment.

This training module teaches board members and trustees how to navigate the complexities of healthcare fundraising effectively. They learn to apply data-driven metrics to assess philanthropic success, comply with multifaceted legal standards, and mitigate inherent risks through due diligence and audits. The module advocates for adaptability and continuous learning as the landscape of philanthropy evolves.