MST 561 - Managerial and Financial Accounting for Healthcare Professionals, Winter 2010 INSTRUCTOR: Jack Raiton Senior Fellow,, School of Medicine Mailcode: BICC 4DM 503-346-0367 (W) 503-819-7155 (C) raitonj@ohsu.edu INSTRUCTOR BIO: Jack Raiton has been a Senior Fellow/Professor at OHSU s OGI School of Science and Engineering, in the Department of Management since 2000. He teaches the graduate courses in capstone (business plan/entrepreneurship), creativity and innovation, and commercialization courses. He has taught graduate courses in General Accounting, Managerial Accounting, Healthcare Finance and Accounting and Corporate Finance. In 2005, Jack was named OGI s Teacher of the Year, by vote of the student body and, in 2007, received the OGI School of Science and Engineering's Faculty Significant Achievement in Innovation Award. Jack previously served as Vice-President and Chief Financial Officer of Planar Systems, Inc. and Smith s Home Furnishings and as Corporate Controller of Tektronix. Earlier in his career, Jack held controllership positions with Fairchild Semiconductor, based in California, New Mexico, and Seoul, Korea. Jack served as the American Electronics Association Vice-Chair and Chair of both the Finance and the Emerging Business Committees. Jack was also a Board Member and President of the Portland Chapter of Financial Executives, International (FEI). During Jack s FEI Presidency, the local chapter was runner-up for the Outstanding National Chapter of the Year award. Jack is also active with the Oregon Entrepreneurial Network (OEN), having served on the Entrepreneur of the Year Committee for two years. Jack is also a member of the Association for Corporate Growth. In 2006, Jack was one of the judges for Ernst &Young's Entrepreneur of the Year award and in 2007 and 2008, was a judge for the Portland Business Journal's CFO of the Year award. Jack also served as Chairman of the Technology Awards Banquet, with an attendance of over 600, in 2005. Jack earned a BS in Mathematics from Oregon State University in 1966 and a MBA in Finance and Statistics from the University of Washington in 1967. He attended Harvard University's Advanced Management Program in 1986, MIT s Entrepreneurship Development Program in 2008, and Mahler Associates, Inc. Advanced Management Skills Program for General Managers in 1984. Jack passed the CPA exam in 1979. Jack is married and has three grown children. The oldest daughter is a nurse in Mammoth Lakes, California and her twin brother is a maintenance manager for Bishop s in Portland. Jack s youngest son is a CFO for a commercial real estate firm in Portland and was named to the Wilson High School and Portland Interscholastic League (PIL) Hall of Fame after a stellar high school and collegiate tennis career, including two state championships and captaining the University of Michigan tennis team. CLASS LOCATION: BICC124 OFFICE HOURS: By Appointment
REQUIRED TEXTS: Healthcare Finance--An Introduction to Accounting and Financial Management, Fourth Edition, Louis C. Gapenski, ISBN: 978-1-56793-280-5 How to Read A Financial Report, Fifth Edition, John A. Tracy, ISBN: 0-471-32935-5 REQUIRED READINGS: Weekly readings and case studies are described below in the COURSE OUTLINE. COURSE DESCRIPTION: Managerial and Financial Accounting for Healthcare Professionals is an applied managerial and financial accounting course. Principles of managerial and financial accounting are developed and used to examine difficult strategic and operational decisions confronting healthcare professionals. The general objective of this course is to provide the healthcare decision maker with the managerial and financial accounting theory, concepts and tools necessary to make better financial management decisions on the job as well as enable the student to make sound judgments regarding financial analyses performed by others. LEARNING OBJECTIVES/KNOWLEDGE AND SKILL OUTCOMES: 1. Financial Analyses - Students will acquire an understanding of financial statement analysis. The focus will be on the interpretation of the income statement, balance sheet and cash flow statements, with a particular concern for how to analyze these statements, using financial ratios and other analytic terms. 2. Managerial/Cost Accounting - Students will acquire an understanding of the complexities of cost behavior. The financial management decision-making processes will include financial projections, cost behavior, cost-volume-profit (CVP) analyses, and special decisions such as make-or-buy, costing, cost allocation and pricing. 3. Planning/Budgeting - Students will have gained an enhanced conceptual and technical understanding of the managerial planning and control processes, including strategic planning, operational budgeting, forecasting, capital budgeting, and net present value analysis. GRADING: Class Participation 35% Individual Project (Due February 14, 2010) 20% Team Project (Due March 13, 2010) 15% Case Studies 30%
COURSE OUTLINE - WEEK 1: JANUARY 4-10, 2010 Class Introductions, Orientation, Introduction to Healthcare Finance, The Financial Environment Introduction to Healthcare How to Read A Financial Report, Chapters 1-24 Healthcare Finance, Chapters 1 & 2 HBR, Sept-Oct, 2000, Will Disruptive Innovations Cure Health Care? (6972) HBR, June, 2004, Redefining Competition in Healthcare (R0406D) Individual Exercise: Healthcare Finance, Questions 1.1, 2.1, 2.7 Conglomerate (A) - Crimson Press COURSE OUTLINE - WEEK 2 - ON CAMPUS: FRIDAY, JANUARY 15, 2010 Lectures: Accounting Concepts, Equations and Framework Basics of Accounting HBS Accounting Definitions Top 10 Accounting Principles for Entrepreneurs HBSP 101118, A Conceptual Framework for Financial Reporting HBSP 101119, The Mechanics of Financial Reporting HBSP 177078, Chemalite, Inc. Video: Consumer-Driven Health Care: A Revolution for Employers, Consumers, and Providers Project Team Formation:
COURSE OUTLINE - WEEK 3: JANUARY 18-24, 2010 Topics Covered Financial Accounting and The Income Statement Financial Accounting Basics and The Income Statement Healthcare Finance, Chapter 3 HBSP 193028, The Accounting Framework, Financial Statements and Some Accounting Concepts HBSP 101109, The Income Statement HBSP 192153, Introduction to Accounting Records Quizzes (5) Practice Problem (1) Healthcare Finance, Problem 3.5 Brandywine Homecare Menotomy Home Health Services - Crimson Press COURSE OUTLINE - WEEK 4: JANUARY 25-31, 2010 The Balance Sheet and Statement of Cash Flows The Balance Sheet and Statement of Cash Flows Healthcare Finance, Chapter 4 HBSP 101108, The Balance Sheet HBSP 101107, The Statement of Cash Flows Quizzes (2) Healthcare Finance, Problem 4.7 Brookstone Ob-Gyn Associates - Crimson Press
COURSE OUTLINE - WEEK 5: FEBRUARY 1-7, 2010 Financial Condition Analysis Financial Analysis Healthcare Finance, Chapter 17 HBSP 193029, Introduction to Financial Ratios and Financial Statement Analysis HBSP 195177, Financial Statement Analysis Individual Exercise: Healthcare Finance, Problem 17.4 Case Studies: Long Term Care Division - Crimson Press Financial Profile of HMO, Hospital Management and Pharmaceutical Industries - Crimson Press COURSE OUTLINE - WEEK 6: FEBRUARY 8-14, 2010 Managerial Accounting Basics, Cost Behavior, Profit Analysis, Breakeven, Cost Allocation Lectures: Managerial Accounting Basics, Cost Behavior, and Profit Analysis Cost Allocation Healthcare Finance, Chapters 5 & 6 (Pages 163-182) HBSP 892010, Relevant Costs and Revenues HBSP 192068, A Brief Introduction of Cost Accounting HBSP 5252BC, Breakeven Analysis and Operating Leverage: Understanding Cash Flow Practice Problems (6) Healthcare Finance, Problems 5.1, 5.2, 5.3, 5.4, 5.5, 5.6 Case Studies: HBSP 178189, Rosemont Hill Health Center Medi-Exam Health Services, Inc, - Crimson Press
COURSE OUTLINE - WEEK 7: FEBRUARY 15-21, 2010 Activity Based Costing and Pricing Lectures: Activity-Based Costing Introduction Pricing Decisions Healthcare Finance, Chapters 6 (Pages 182-186) and Chapter 7 HBSP 197076, Introduction to Activity Based Costing HBSP 193044, Activity Accounting - Another Way to Measure Cost HBR, Sept-Oct, 1995, How Do You Know When the Price is Right? (95501) Practice Problems (2) Healthcare Finance, Problem 6.7 HBSP 100054, Cambridge Hospital Community Unit Network - The Primary Care Unit COURSE OUTLINE - WEEK 8: FEBRUARY 22-28, 2010 Time Value of Money and The Basics of Capital Budgeting Time Value of Money Healthcare Finance, Chapters 9 & 14 HBSP 9-198-004, Basic Capital Investment Analysis HBSP 177012, Cash Flow and the Time Value of Money Quizzes (6) Practice Problem (1) Healthcare Finance, Problems 9.1 and 14.1 Green Valley Medical Center - Crimson Press
COURSE OUTLINE - WEEK 9: MARCH 1-7, 2010 Planning and Budgeting Planning and Budgeting Healthcare Finance, Chapter 8 HBSP 193101, Responsibility Centers and Performance Measurement HBSP 206048, Note on Financial Forecasting Healthcare Finance, Problem 8.3 Case Studies: Los Reyes Hospital (A) -Crimson Press COURSE OUTLINE - WEEK 10 - ON CAMPUS: SATURDAY, MARCH 13, 2010 Team Presentations: Balanced Scorecard Budgets Activity Based Costing Strategic Planning Patient Driven Healthcare Video: Sicko COURSE OUTLINE - WEEK 11 - MEET AND GREET: MARCH, 2010 Venue: To Be Determined