Essentials of Health Care Finance. - book review

AORN Journal, May, 2003 by Cynthia D. Turner

fifth ed By William O. Cleverly and Andrew E. Cameron 2002, 475pp $69 hardback

Financial management has become extremely important throughout the health care continuum. It is imperative that all health care professionals understand the basics of financial management. Professionals in positions of team leader, department supervisor, or manager of a service must have in-depth knowledge and understanding of financial management and accounting. They not only must be knowledgeable about how to manage their department's budget, but they also must understand how their department affects the health care system's financial plan. They also should understand basic principles of accounting.

This text belongs on the desk of every health care professional who manages a budget. It provides basic information on financial management and accounting principles for people new to this side of the profession. It also provides in-depth information for experienced people who want more knowledge about the corporate side of the business. The text delves into the economic environment of the health care industry and covers the numerous legal and regulatory provisions encountered by health care leaders. Managed care issues, concerns, and contracts are covered quite extensively, and a sample managed care contract is included along with a description of the key elements involved in these contracts.

There are several chapters that explain financial reporting for health care organizations and different accounting terms related to specific health care issues. Three chapters cover analyzing financial statements and examine several excellent tools and techniques available for this purpose. Examples are provided throughout these chapters. Cost finding, break-even analysis, budgeting, and several other accounting topics are covered thoroughly in five additional chapters.

This text is an excellent learning tool for health care professionals who have minimal knowledge of financial management. It also is excellent for those with fairly good knowledge of financial management but who want to learn more about the corporate aspects of financial management and gain a more global understanding. There are learning objectives and questions with answers for every chapter. This book is written comprehensively and is easy to understand. It is an excellent resource for health care professionals at any level who handle budgets.

This book is available from Aspen Publishers, Inc, 200 Orchard Ridge Dr, Suite 200, Gaithersburg, Md, 20878; http://www.aspenpublishers.com.

CYNTHIA D. TURNER
RN, MSN, CNOR,
LCDR, NURSE CORPS, US NAVY
OR STAFF NURSE
NAVAL HOSPITAL CAMP PENDLETON

CALIF