Workshop on Financial Management Program for Hospital Accountants

Program Overview:

The primary role of financial management in healthcare organizations is to manage money and risk in a way that helps to achieve the financial goals of the organization. When a healthcare organization has strong and organized financial management plans, they’re able to provide efficient healthcare to all their patients. This course will provide participants with tools and techniques necessary to enhance all the building blocks of accounting and finance needed for hospital accounting management. From accounts payable and cash management to budgeting and financial statements, Participants will learn the best practices in tools and techniques that will help them deliver more value to their organizations. This course will cover behavioral and technical concepts as they relates to day-to-day accounting and finance operations in the hospitals.

For Whom:

This course is designed for Chief medical directors, Chief financial officers, Head of Administration, Hospital Accountants, and Non-financial professional managers who are required to read, interpret, and contribute to the hospital business financial reports.

Learning Objectives:

At the end of the program, participants will be able to:

• create a vision for the finance and accounting department of the organization;
• evaluate and improve accounts payable process management;
• identify and apply the key best practices in receivables, inventory and cash management;
• evaluate the budgeting process in their organizations and recommend improvements;
• apply excel reporting dashboard and analysis techniques for a faster accounting and financial operations;
• develop and apply positive work attitude to daily finance and accounting operations;
• create budget templates and models for their organization;
• apply forecasting techniques to better manage uncertainties in budgeting; and
• evaluate capital budgeting decisions using several methods and make sound recommendations.

Course Outline:

Day 1: Accounting: Understanding the language of business

• The environment of financial reporting in hospitals
• The balance sheet
• Statement of shareholders’ equity
• The income statement
• The cash flow statement
• Cash and receivables
• Accounting for cash and cash equivalents
• Accounting for accounts receivable
• Cash and receivables best practices for hospitals
• Inventory life cycle
• Accounting for inventory, costing, and measurement
• Computation of COGS using inventory costing methods
• Inventory valuations
• Dynamics of inventory for hospitals

Day 2: Accounting for Property, plant, equipment and intangibles

• Accounting for purchased assets
• Asset capitalization rules
• Depreciation methods
  • Straight line depreciation
  • Units of production
  • Double declining
• Maintenance and repairs expensing or capitalizing
• Accounting for retired, sold, and written-off assets
• Depletion of natural resources
• Intangible assets
• Assets best practices for hospitals
• Liabilities
  • Accounts payable and accruals
  • Advances and refundable deposits
  • Warranty obligations and contingencies
  • Accounting for bonds
  • Liabilities best practices for hospitals

Day 3: Budgeting and planning

• Strategy development framework
• The three horizons of growth model
• Strategic budgeting and resource allocation
  • Growth-share matrix
  • Nine-box matrix
• Budgets and the key financial statements
• Budget cycle, process and approaches
• The budget cycle
• Characteristics of successful budgeting
• Making the budget a value-adding activity
• Top ten problems with budgeting
• Choosing the proper budgeting approach:
  • Incremental budgeting
  • Zero-based budgeting
  • Flexible budgeting
  • Kaizen budgeting
  • Activity based budgeting
  • Rolling (continuous) budgets and forecasts
• The master budget and its components
• Operating and capital budgets
• Best practices in budgeting for hospitals

Day 4: Forecasting techniques

• Forecasting models
  • Qualitative and quantitative methods
  • Steps in developing forecasting models
  • Time series and trend analysis
  • Data conditioning techniques
  • Exponential smoothing and moving averages
  • Simple and multiple regression analysis
  • Dynamics of forecasting techniques for hospitals
• Modeling projected financial statements
• Micro and macro factors
• Forecasting sales
  • Estimating market demand
  • Estimating company demand
  • Developing sales forecast
• Forecasting cost of sales
• Forecasting operating expenses
• Forecasting key assets and liabilities accounts
• Modeling the income statement forecast
• Modeling the balance sheet forecast
• Dynamics of modeling projected financial statements

 for hospitals

Day 5: Advanced capital budgeting evaluation techniques

for hospitals

• Business risk and cost of capital
• Classifying investment projects
• Cash flow estimation
• Analyzing investment and operating cash flows
• The time value of money concept
• The required rate of return
• Net Present Value (NPV)
• Internal Rate of Return (IRR)
• Multiple internal rates of return
• Modified Internal Rate of Return (MIRR)
• Profitability Index (PI)
• Payback period and discounted payback period
• Capital rationing
• Comparing and evaluating techniques
• Sensitivity and risk analysis
• Breakeven analysis and optimization techniques for hospitals
  • Cost Volume Profit (CVP) analysis
  • Using CVP to reach a target income
  • Single product and multiple products breakeven analysis
• Working with budget constraints

Training Methodology

Lectures, discussions, exercises, and case studies will be used to reinforce these teaching/learning methods.