Fundamentals of Healthcare Finance, Fourth Edition

Financial realities play an important role in many, if not most, management decisions made in healthcare organizations. Financial acumen is a critical professional competency for all healthcare managers, regardless of the functional area or setting they work in.

Fundamentals of Healthcare Finance provides a solid grounding in the principles and tools of accounting and finance that managers use daily. From planning and budgeting to risk analysis and financial reporting, core concepts are clearly explained and supported by real-world examples.

This fourth edition has been updated throughout to reflect the most recent payment models and current financial accounting standards. A new chapter describes the role that internal control and governance play in ensuring the accuracy of financial information, as well as strategies for identifying and preventing errors and fraud.

Other new content in this edition covers:

• Rate and efficiency variances
• Revenue cycle management and new reimbursement models
• The new revenue recognition standard and its implementation
• The growth in (and importance of) data-driven decision-making
• Accounting changes for lease arrangements

The book’s concepts are reinforced with practice scenarios, contemporary examples, self-test questions, sidebars, and a running glossary.

Fundamentals of Healthcare Finance provides managers with the financial proficiency they need to ensure their department and organization run optimally.

About the Author

Kristin L. Reiter, PhD, is professor and associate chair in the Department of Health Policy and Management in the Gillings School of Global Public Health, and a research fellow in the Cecil G. Sheps Center for Health Services Research, both at the University of North Carolina at Chapel Hill.

She received a bachelor’s degree in accounting from Northern Illinois University. She also earned a master’s degree in applied economics and a doctorate in health services organization and policy, with a concentration in corporate finance, from the University of Michigan. Prior to joining academia, she worked in public accounting, serving not-for-profits and clients in the insurance industry.

Dr. Reiter teaches undergraduate- and graduate-level courses in healthcare accounting and financial management and is involved in research projects examining rural health policy, hospital financial performance, and the business case for quality. In the past 15 years, she has served on audit, finance, and advisory committees of several healthcare professional associations. She is the author or coauthor of more than 50 peer-reviewed articles, and she has presented to academic and professional audiences in the United States, France, and Canada.

Paula H. Song, PhD, is the Richard M. Bracken Chair and Professor in the Department of Health Administration in the College of Health Professions at Virginia Commonwealth University. Her research and teaching interests cover areas such as healthcare financial management, investment strategies in not-for-profit hospitals, payment reform, and business case evaluation for health initiatives. Dr. Song received a doctorate in health services organization and policy as well as a master’s in health services administration and applied economics from the University of Michigan in Ann Arbor. She has published more than 50 peer-reviewed articles and has coauthored five leading textbooks on healthcare finance. In 2020, she was awarded the John D. Thompson Prize by the Association of University Programs in Health Administration.