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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 | |