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| List of Figures and Tables | |
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| Preface | |
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| Acknowledgments | |
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| Introduction: Health Care and Finance | |
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| Health Care Is Different/Health Care Is The Same | |
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| Plan of the Text | |
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| Summary | |
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| Continuing Cases | |
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| Introduction to Health Care and Finance | |
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| Financial Management In Health Care Organizations | |
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| The Universal Concerns of Financial Management | |
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| The Five Pillars of Financial Practice | |
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| The Managed Care Challenge | |
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| Summary | |
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| Agency Problems and Agency Costs | |
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| Types of Agency Problems | |
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| Cost Control and Agency Problems | |
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| Agency Problems in Health Care Finance | |
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| Resolving Agency Problems | |
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| Summary | |
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| Tools | |
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| Accounting and CashFlow Analysis | |
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| Why Learn Accounting? | |
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| Fields of Accounting Practice | |
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| Accounting Principles: What Are They and Who Makes Them Up? | |
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| The Accounting Cycle | |
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| Some Basic Accounting Entries | |
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| Cash Flow Accounting | |
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| Fund Accounting | |
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| The Special Case of Hospital Revenues | |
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| Auditing: The Misunderstood Art | |
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| Summary | |
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| Organizational Diagnostics: Financial Statement Analysis | |
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| Using Financial Statements | |
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| Financial Statement Analysis: Its Power and Limitations | |
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| A First Approach: Common-Size Statements | |
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| The Power Approach: Ratio Analysis | |
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| Liquidity Ratios | |
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| Asset Utilization Ratios | |
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| Leverage Ratios | |
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| Profitability Ratios | |
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| Summary | |
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| The Time Value of Money | |
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| Compounding: the Calculation of Future Value | |
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| Discounting: The Calculation of Present Value | |
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| Special Problems in Present Value | |
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| Some Examples | |
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| Summary | |
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| Valuing Assets | |
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| Value | |
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| Approaches to Valuation | |
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| The Logic of Discounted Cash Flow Valuation | |
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| Some Applications | |
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| A Case Study | |
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| A Few Complications | |
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| Summary | |
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| Cost Behavior | |
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| Costs | |
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| Costs Classification | |
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| Responsibility Centers | |
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| Cost Allocation: Managerial Decisions Under Ambiguity | |
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| Allocation Criterion | |
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| The ABCs of ABC | |
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| Separating Fixed and Variable Costs | |
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| Cost-Volume-Profit Analysis, Traditional | |
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| Cost-Volume-Profit Analysis, Capitation | |
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| Summary | |
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| Budgeting and Variance Analysis | |
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| A Tool, Not a Trophy | |
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| Some Budget Fables | |
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| Components of the Budget | |
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| People Behind the Budget | |
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| Budgeting Choices | |
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| An Example | |
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| The Budget Cycle | |
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| Variance Analysis | |
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| Summary | |
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| The Financial Market Environment | |
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| Financial Markets: Institutions, Risk, and Return | |
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| Financial Markets | |
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| Financial Markets: Who and What? | |
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| Roles in Financial Markets | |
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| Rates of Return | |
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| Risk in Financial Markets | |
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| Equilibrium Pricing and Returns | |
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| How Well Do Financial Markets Work? | |
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| A Brief Note on Owners' Equity | |
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| More on Yields | |
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| Summary | |
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| Selecting Long-Term Assets and Programs | |
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| The Basics of Capital Budgeting | |
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| Criteria and Constraints | |
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| Multiple Steps | |
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| Cash Flows Reconsidered | |
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| A Note on Expected Inflation | |
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| Decision Problems and Decision Rules | |
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| What About Internal Rate of Return? | |
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| Selecting the Discount Rate | |
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| A Simple Example | |
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| Capital Budgeting and Its Discontents | |
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| Summary | |
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| Special Topics in Capital Budgeting | |
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| Capital Rationing: The General Case | |
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| Adjusting for Project Risk | |
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| Adjusting for Unequal Lives | |
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| Lease or Buy? | |
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| Strategic Options | |
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| Summary | |
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| Managing Long-Term Financial Assets: The Endowment | |
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| Managing the Endowment | |
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| The Endowment Concept | |
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| Some Principles Remembered | |
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| The Return Objective | |
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| Constraints | |
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| Inside or Outside Management | |
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| Sample Investment Policy | |
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| Summary | |
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| Long-Term Financing | |
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| External Financing: Sources | |
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| External Financing: Key to Success | |
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| External Financing: The Choices | |
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| The Weighted Average Cost of Capital Once Again | |
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| Debt and Equity Choices: The Capital Structure Decision in Theory | |
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| The Capital Structure Decision in Practice | |
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| Summary | |
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| Procedures for Long-Term Financing | |
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| Actors and Frictions | |
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| Regulators and Regulation | |
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| Middlemen | |
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| Hangers-On | |
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| A Financing Tale | |
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| To Insure or Not To Insure: An NPV Problem | |
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| Summary | |
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| Access to Capital and Organizational Viability | |
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| The Problems | |
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| The Solutions | |
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| Reimbursement Modes and Access to Capital | |
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| Summary | |
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| Managing Short-Term Assets and Liabilities | |
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| Principles of Working Capital Management | |
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| Current Assets | |
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| Money and Credit: Bankers' Constraints | |
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| The Cash Conversion Cycle | |
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| Controlling Liquidity | |
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| A Basic Principle | |
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| Summary | |
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| Cash, Marketable Securities, and Patient Accounts | |
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| Cash and Cash Equivalents | |
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| The Cash Budget | |
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| Cash Management Services | |
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| Managing Marketable Securities | |
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| Patient Accounts | |
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| Decisions on Patient Accounts | |
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| Some Examples | |
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| Summary | |
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| Inventory Management: Mathematics and Judgement | |
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| Why Bother? | |
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| The Time Path of Inventory Use | |
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| The ABCs of Good Judgement | |
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| Opportunities for Value Enhancement | |
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| Summary | |
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| Current Liabilities: Short-Term Financing | |
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| The Matching Principle | |
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| A Note on Short-Term Interest Rates | |
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| Sources of Short-Term Financing | |
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| Summary | |
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| Frontiers of Health Care Financial Management | |
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| Beyond Bean Counting | |
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| Strategic Financial Planning | |
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| Financial Structure and Restructuring | |
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| Mergers and Acquisitions | |
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| At-Risk Contracting | |
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| International Health Care Financial Management: The Frontier Beyond the Frontier | |
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| Summary | |
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| Glossary | |
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| Answers to Selected Discussion Questions | |
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| Index | |