Description:
The increasing pressure on the bottom line of
healthcare provider organizations requires leaders who understand and can
adeptly apply the basic principles of effective financial and operations
management. To be successful in today’s environment leaders must simultaneously
improve quality and service while reducing expense. Improving Financial
and Operations Performance: A Healthcare Leader’s Guide is a
collection of proven effective tips, tools, and techniques accumulated from
real-world challenges and lessons learned logically organized to provide a straightforward
approach to planning, assessing, managing, and monitoring a business enterprise
to improve profitability.
This book provides a clear, step-by-step “how
to” approach for both new and experienced leaders seeking a leg up in tackling
the myriad of common and complex challenges they are facing including
conducting a budget variance analysis, managing labor and non-labor
productivity and expense, performing a comprehensive financial condition
analysis, growing profitable volume and market share, developing an effective
business case for improving quality, and evaluating the financial impact of a
future project. Written for clinical and administrative leaders working in the
trenches, it provides practical and applicable tools with relevant, real-world,
and replicable case study examples. The essential value of Improving
Financial and Operations Performance: A Healthcare Leader’s Guide is
improving decision-making effectiveness, enhancing operations efficiency
know-how, and developing strong financial management acumen to overcome the
challenges in today’s healthcare environment.
Key Features:
- Author
experience with extensive expertise as a former investor-owned
hospital CEO, integrated health system vice president, managing director for
the renowned turnaround experts, the Hunter Group, and graduate business school
professor in management, finance, and economics.
- Realistic
case examples to apply the key lessons through
detailed practical and relevant case studies using clear step-by-step
instructions.
- Calls-to-action at
the end of each chapter with critical leadership imperatives to help prioritize
and focus efforts on what matters most.
- Comprehensive
glossary of key terms and concepts using plain easy to
understand language.
- Appendices
and Excel templates containing easy-to-use plug-and-play
financial worksheets, checklists, best practice pathways, and performance
assessments.
Contents:
Dedication
Preface
Part I: Introduction
Chapter 1. Introduction to Effective
Healthcare Financial and Operations Management • Learning
Objectives • Key Terms and Concepts • Introduction • Movement to Value-Based
Care • Impact of Reimbursement Models on Utilization of Services and Payment •
The Role of Healthcare Leaders in Effective Financial and Operations Management
• Challenges to Effective Financial and Operations Management • Phases of
Effective Financial and Operations Management • Summary • Calls to Action
Chapter 2. How Money Flows Through a
Healthcare Provider Organization • Learning Objectives •
Tools and Techniques • Key Terms and Concepts • Introduction • How Money Flows
Through a Healthcare Provider Organization • Conducting a Profitability
Analysis • Breakeven Analysis • Regional Health System Case Example:
Determining Profitability of the Retail Flu Shot Clinic for November, Fiscal
Year 20X2 • Summary • Calls to Action
Part
II: Planning
Chapter 3. Developing the Operating Budget •
Learning Objectives • Tools and Techniques • Key Terms and Concepts •
Introduction • Types of Budgets and Key Uses • Budgeting Process • Limitations
of the Operating Budget • Capital Budget • Regional Health System Case Example:
Creating the Retail Flu Shot Clinic’s Operating Budget • Summary • Calls to
Action
Part
III: Assessing
Chapter 4. Conducting a Financial Condition
Analysis: Interpreting Basic Financial Statements and Indicators •
Learning Objectives • Tools and Techniques • Key Terms and Concepts •
Introduction • Understanding Financial Statements • Balance Sheet • Statement
of Cash Flows • Income Statement • Financial Ratio Analysis • Operating
Indicator Analysis • Adjusted Calculations • Regional Health System Case
Example: Conducting a Financial Condition Analysis • Summary • Calls to Action
Chapter 5. Understanding Financial and
Operating Variance • Learning Objectives • Tools and Techniques
• Key Terms and Concepts • Introduction • From Patient Management to Financial
Management • Variance Analysis • Financial Pathway • Regional Health System
Case Example: Variance Analysis for the Department of Surgical Services •
Summary • Calls to Action
Part IV: Managing
Chapter 6. Managing Labor Productivity and
Expense • Learning Objectives • Tools and Techniques • Key Terms
and Concepts • Introduction • Challenges to Managing Labor Productivity •
Leaders’ Role in Managing Labor Productivity • Measuring and Evaluating Labor
Productivity • Labor Productivity Analysis • Tactics for Improving Labor
Productivity • Regional Health System Case Example: Reducing Labor Expense •
Summary • Calls to Action
Chapter 7. Managing Non-Labor Productivity
and Expense • Learning Objectives • Tools and Techniques • Key Terms
and Concepts • Introduction • Acquisition • Utilization • Evaluation • Regional
Health System Case Example: Reducing Non-Labor Expense • Summary • Calls to
Action
Chapter 8. Growing Profitable Volume and
Market Share • Learning Objectives • Tools and Techniques
• Key Terms and Concepts • Introduction • Developing the Five-Step Blueprint
for Growth • Regional Health System Case Example: Growth Task Force Initiatives
• Summary • Calls to Action
Part
V: Monitoring
Chapter 9. Making the Business Case for
Quality • Learning Objectives • Tools and Techniques • Key Terms
and Concepts • Introduction • Key Criteria for an Effective Business Case •
Applying the Business Case Approach • Challenges to Creating the Business Case
• Five-Step Process for Making an Effective Business Case • Monetizing Quality
Improvement Initiatives • Regional Health System Case Example: Making the
Business Case for Decreasing Cross-Contaminated Blood Culture Specimens in the
Emergency Department • Summary • Calls to Action
Chapter 10. Evaluating the Financial Impact
of a Future Project • Learning Objectives • Tools and Techniques
• Key Terms and Concepts • Introduction • Time Value of Money • Conducting a
Discounted Cash Flow Analysis • Financial Modeling • Developing the Financial
Pro Forma • Sensitivity Analysis • Non-Financial Considerations • Risk
Analysis: Evaluation and Mitigating Uncertainty • Benchmarking Financial and
Operations Performance • Regional Health System Case Example: Projected
Financial Impact of the Weekend Operating Room • Summary • Calls to Action
Glossary
Appendices
Appendix A: Regional Health System Case Example: Background
Appendix B: Consolidated Financial Statements and Selected
Measures of Financial and Operating Performance for Regional Health System, FY
20XX to FY 20X2
Appendix C: Financial Pathway for Department of Surgical Services
at Regional Health System
Appendix D: Profit and Loss Statement for Department of Surgical
Services at Regional Health System, September FY 20X2 and FY 20X2 Year-to-Date
Appendix E: Thirty Proven Tactics to Optimize Labor Productivity
Appendix F: Purchased Services Inventory Checklist
Appendix G: Secret Shopping Script (Orthopedic Clinic Example)
Appendix H: Provider Liaison Qualifications
Appendix I: Provider Alignment Survey
Appendix J: Basic Introduction to Electronic Spreadsheets With
Video Tutorials
Index
About the Author:
Richard J.
(Rich) Priore, Sc.D., MHA, FACHE, FACMPE is a leading international expert on healthcare system
transformation and performance improvement. His extensive leadership experience
spans more than 27 years in the investor-owned for-profit, private
not-for-profit, and government healthcare sectors serving in senior executive
roles including hospital CEO, regional service line vice president, chief
business development officer, managing director, and turnaround expert for the
Hunter Group. Rich is the Founder, President, and CEO for Excelsior HealthCare
Group, an outcomes-driven healthcare management consulting firm specializing in
the rapid assessment, focus on execution, and speed of measurable and
sustainable results for improving operations inefficiency and the bottom line.
Dr. Priore is a Distinguished Service Professor in the Opus College of Business
at the University of St. Thomas in St. Paul teaching graduate healthcare finance
and economics. He also serves as faculty for the American College of Healthcare
Executives and the American Association for Physician Leadership. He is a
frequent national speaker and educator for leading healthcare provider
organizations, Fortune 500 companies, and professional associations. Rich is a
proud U.S. Army veteran with tours of duty in Europe, Southeast Asia, and
Washington, DC where he served in the White House under two different
administrations.
Target Audience:
Clinical and administrative leaders in
healthcare.