Cases in Healthcare Finance, Seventh Edition
George H. Pink and Paula H. Song
Contents
Preface for Instructors ix
Preface for Students xix
Case Descriptions xxiii
Part I THE HEALTHCARE ENVIRONMENT
1 New England Healthcare (Premium Development) 3
2 Beaufort Family Physicians (Pay for Performance) 11
3 Santa Fe Healthcare (Capitation and Risk Sharing) 19
Part II COST BEHAVIOR AND PROFIT ANALYSIS
4 Tulsa Memorial Hospital (Break-Even Analysis) 27
5 Shasta Faculty Practice (Cost–Benefit Analysis) 33
Part III COST ALLOCATION
6 Big Bend Medical Center (Cost Allocation Concepts) 41
7 Eagan Family Practice (Cost Allocation Methods) 49
8 Dallas Health Network
(Activity-Based Costing Analysis) 55
Part IV PRICING, PLANNING, AND BUDGETING
9 Cambridge Transplant Center
(Marginal Cost Pricing Analysis) 63
10 Cascades Mental Health Clinic (Variance Analysis) 69
11 Century Oaks Health (Budgeting Concepts) 79
Part V FINANCIAL MANAGEMENT CONCEPTS
12 Gulf Shores Surgery Centers (Time Value Analysis) 87
13 Mid-Atlantic Specialty, Inc. (Financial Risk) 91
Part VI CAPITAL ACQUISITION
14 Pacific Healthcare (A) (Bond Valuation) 97
15 Senior Care Enterprises (Bond Refunding) 99
16 Pacific Healthcare (B) (Stock Valuation) 103
17 Seattle Cancer Center (Leasing Decisions) 105
Part VII COST OF CAPITAL AND CAPITAL STRUCTURE
18 Southeastern Homecare (Cost of Capital) 113
19 RN Temps, Inc. (Capital Structure Analysis) 119
Part VIII CAPITAL ALLOCATION
20 Jones Memorial Hospital
(Capital Budgeting Decision Criteria) 129
21 Coral Bay Hospital (Traditional Project Analysis) 133
22 National Rehabilitation Centers
(Staged-Entry Analysis) 139
23 Northwest Suburban Health System
(Outsourcing Decisions) 145
Part IX FINANCIAL CONDITION ANALYSIS AND
FORECASTING
24 Commonwealth Health Plans
(Assessing HMO Performance) 155
25 River Community Hospital (A)
(Assessing Hospital Performance) 165
26 River Community Hospital (B)
(Financial Forecasting) 173
Part X CURRENT ASSET MANAGEMENT
27 Mountain Village Clinic (Cash Budgeting) 179
28 Foster Pharmaceuticals (Receivables Management) 183
29 Clarinda Community Hospital
(Inventory Management) 187
30 Milwaukee Regional Health System
(Revenue Cycle Management) 193
Part XI BUSINESS VALUATION
31 St. Benedict’s Teaching Hospital (Merger Analysis) 207
32 Beachside Health Partners (Joint Venture Analysis) 215
33 Bedford Clinics (Practice Valuation) 223
About the Authors 231