About This Chapter
Financial Assessment in Healthcare - Chapter Summary
This comprehensive healthcare finance chapter outlines various methods of financial assessment in healthcare contexts. Work through these engaging video and text-based lessons at your own pace to become familiar with concepts like financial statement analysis, financial ratio analysis, benchmarking, discrete event simulation and more. Included in the chapter are printable lesson transcripts, short quizzes and a comprehensive multiple-choice exam. We've also made the chapter accessible 24/7 so you can study these topics whenever it's convenient. When you're finished working through the chapter, you should be equipped to:
- Explain the purpose of financial statement analysis
- Define/apply financial ratio analysis
- Analyze profitability, liquidity, leverage and activity ratios
- Outline the process of benchmarking
- Discuss the functions and benefits of profit analysis in healthcare settings
- Describe the advantages of comparative financial statements
- Recognize the purpose of discrete event simulation
- Assess benchmarking types and benefits in healthcare
1. Financial Statement Analysis: Definition, Purpose, Elements & Examples
In this lesson, we'll define financial statement analysis and discuss the main categories. You'll also learn how to calculate a financial ratio in each category and analyze the results.
2. Defining and Applying Financial Ratio Analysis
In this lesson, we'll define financial ratios. You'll learn the three main categories of financial ratios, and we'll show an example of each. We'll also discuss an analysis of each example.
3. Profitability Ratio: Definition, Formula, Analysis & Example
How do you know if a company is performing well? In this lesson, you'll learn about various profitability ratios, including what they mean, their formulas and examples illustrating them. A short quiz follows the lesson.
4. Liquidity Ratio: Definition, Calculation & Analysis
The financial stability of a company can be tested in many ways. One of the quickest ways to see just how well a company is performing is to use financial ratios. In this lesson, you will learn what liquidity ratios are, how to calculate them, and how to interpret them.
5. Leverage Ratios: Types & Formula
In this lesson, we'll define leverage. We'll review three types of financial leverage ratios: debt ratio, debt-to-equity ratio, and interest coverage ratio. You'll also learn how to calculate and analyze the results.
6. Activity Ratios: Definition, Formula & Analysis
Businesses need to know how soon they can convert their assets into cash. They use activity ratios to figure it out. In this lesson, you'll learn the definition of activity ratio, as well as about some common types.
7. What is Benchmarking? - Definition, Types, Process & Examples
Companies use benchmarking as a way to compare key metrics to other businesses in the industry. This allows companies to see how well they are performing and identify ways they can become more competitive in the industry. In this lesson, we will look at the different types of benchmarking, the stages of benchmarking, and a real world example.
8. Profit Analysis in Healthcare
In this lesson, we'll define profit analysis and discuss how patient volume impacts profitability. You'll also learn the difference between Fee-For-Service and Capitation Reimbursement.
9. Comparative Financial Statements: Definition & Advantages
In this lesson, we'll define comparative financial statements. You'll also learn about the three advantages in constructing comparative financial statements: using percentages, analyzing trends, and comparing between different-sized companies.
10. Discrete Event Simulation for Healthcare Organizations
Have you heard of discrete event simulation (DES), where modeling is used to represent complex systems as a sequence of discrete events? In this lesson, you'll learn about DES as it is used increasingly in healthcare for improvement of services.
11. Benchmarking in Healthcare: Definition, Types & Benefits
Benchmarking is a business concept that was imported into healthcare as the industry began to look at quality and safety and how it could be applied to facilitate change. In this lesson, you'll learn about benchmarking types and benefits.
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Other chapters within the Health 305: Healthcare Finance & Budgeting course
- Introduction to Healthcare Finance
- Organizational Structure in Healthcare
- Healthcare Organizations & Services
- Financial Reporting in Healthcare
- Health Insurance & Reimbursement
- Estimating Healthcare Costs
- Healthcare Financial Management
- Accounting & Income Statements in Healthcare
- Using Balance Sheets in Healthcare Finance
- Healthcare Planning & Budgeting
- Project Costs & Evaluation in Healthcare
- Healthcare Staffing Needs & Forecasting
- Trends in Healthcare
- Required Assignment for Health 305