Healthcare Cost Containment: A Survey Of Healthcare Financial Managers

Federal and state governments, as well as third party payees, have created incentives for cost containment policies within healthcare settings.  The purpose of this study is to determine the extent healthcare financial managers (HCFMs) believe various healthcare reform measures and cost containment strategies are effective and to descriptively compare the perception of effectiveness by type of organization (for profit, not for profit, and outside CPA/consulting firm). Eighty-four HCFMs, from 36 states, agree that the majority of healthcare reform measures are moderately or very effective.  In general, accounting practices that HCFMs have direct decision making authority over were deemed effective (i.e. accounting systems that reduce administrative costs) regardless of type of agency employed.  Surprisingly, accounting systems that provide more accurate allocation of indirect-overhead costs were not considered effective by not-for profit organizations.  On the other hand, analyzing variances between expectations and actual cost/revenue, closely monitoring supply and equipment costs, and reducing administrative costs were rated effective by all three groups.

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Controlling Medical Costs: Perspectives From Financial And Nurse Executives

Journal of Business & Economics Research (JBER) ◽

10.19030/jber.v5i5.2540 ◽

2011 ◽

Vol 5 (5) ◽

Author(s):

Paul J. Carruth ◽

Ann K. Carruth

Keyword(s):

Cost Containment ◽

Healthcare Reform ◽

Nurse Executives ◽

Font Size ◽

Cost Shifting ◽

Accounting Systems ◽

Overhead Cost ◽

Administrative Costs ◽

Healthcare Reforms ◽

The Cost

The cost of healthcare in the U.S. is an issue of continuing concern for those who manage the economics of healthcare. Increasingly, as the system continues to undergo responsive changes in structure and processes, healthcare financial managers (HCFM) and Nurse Executives (NE) have emerged as an important part of healthcare reform. The purpose of this study is to compare the extent HCFMs and NEs believe various healthcare reform measures and cost containment strategies are effective. Eighty-four HCFMs, and 99 NEs from 36 states, comprised the sample for this study. Both groups agree that the majority of healthcare reform measures are moderately or very effective.  In general, accounting practices that HCFMs and NEs have direct decision making authority over were deemed effective (i.e. accounting systems that reduce administrative costs). Three strategies not considered effective by both groups were restriction of coverage for various drug therapies, accounting systems that provide more accurate allocation of indirect/overhead cost; and increased physician accountability for cost containment. When comparing accounting systems, expense tracking, and cost shifting strategies, HCFMs were significantly more likely to rate cost shifting as effective than NEs. Acknowledging that HCFMs and NEs believe that accounting systems are  responsive to healthcare reforms validates and contributes to the ongoing efforts of HCFMs and NEs to continue to use their expertise to maximize revenues, and minimize costs in order to provide competitive, caring patient care.

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Payment for Nondistributive Hospital Pharmacy Services—A Regional Survey

Drug Intelligence & Clinical Pharmacy ◽

10.1177/106002807801200705 ◽

1978 ◽

Vol 12 (7) ◽

pp. 410-412 ◽

Cited By ~ 1

Author(s):

Lee R. Strandberg ◽

Douglass J. Stennett ◽

William Simonson

Keyword(s):

Therapy Monitoring ◽

Patient Discharge ◽

Third Party ◽

Pharmacy Services ◽

Medication History ◽

Regional Survey ◽

For Profit ◽

Not For Profit ◽

Hospital Pharmacies ◽

Report Data

Questionnaires were mailed to all (464) non-government, not-for-profit and investor owned for-profit hospital pharmacies in Washington, Oregon and California. Responses were received from 350 institutions, a return rate of 75.4 percent. Pharmacists were asked to report data relating to the incidence of, the range of fees charged, and the extent of reimbursement received from third party carriers for the provision of nondistibutive pharmacy services. The data received indicate that pharmacy consultation to physicians was provided by 77.9 percent of the respondents, drug therapy monitoring by 48.1 percent, generalized patient discharge consultation by 40.8 percent, CPR team participation by 27.2 percent, in-depth patient discharge consultation by 17.5 percent and admitting medication history by 8.8 percent. Additionally, 12 institutions charged for providing 16 nondistributive pharmacy services. Directors of pharmacy from six hospitals indicated that they billed third party carriers for nondistributive pharmacy services as part of their total pharmacy charge via their usual billing procedure. All third party carriers billed in this manner paid for the nondistributive pharmacy sevice.

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Castle Hall Academy: A Case Study In Non-Profit Accounting Mismanagement

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v22i2.1439 ◽

2011 ◽

Vol 22 (2) ◽

Author(s):

Frank J. Grippo ◽

Noah P. Barsky ◽

Joel Siegel ◽

William Matthews

Keyword(s):

Financial Reporting ◽

Font Size ◽

Non Profit ◽

Audit Firm ◽

For Profit ◽

Not For Profit ◽

Actual Experience ◽

Accounting Courses ◽

Private High School

This case requires you to resolve financial reporting deficiencies that arise in the audit of a not-for-profit entity, a prestigious private high school.  This case is based on the actual experience that an audit firm had with a not-for-profit client.  The primary reporting issues in the case relate to investments, contributions, severance packages, and leases that arise due to school management’s failure to consider recent accounting pronouncements.  By completing this case, you will learn about standards that affect not-for-profit entities and how auditors resolve differences with clients.  The decisions that you make require an understanding of technical knowledge of topics covered in typical intermediate accounting courses.  In addition, the case requires you to integrate accounting theory with the practice of auditing.  The premise for the case is that in order to be a successful auditor, you will need a good understanding of your client’s business as well as technical accounting issues.

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EXPLAINING THE PRICE OF VOLUNTARY CARBON OFFSETS

Climate Change Economics ◽

10.1142/s2010007810000091 ◽

2010 ◽

Vol 01 (02) ◽

pp. 93-111 ◽

Cited By ~ 33

Author(s):

MARC N. CONTE ◽

MATTHEW J. KOTCHEN

Keyword(s):

Carbon Offsets ◽

Third Party ◽

Hedonic Price ◽

Large Variability ◽

Explanatory Variables ◽

For Profit ◽

Not For Profit ◽

Price Functions ◽

Developed Nations ◽

Project Level

This paper identifies factors that explain the large variability in the price of voluntary carbon offsets. We estimate hedonic price functions using a variety of provider- and project-level characteristics as explanatory variables. We find that providers located in Europe sell offsets at prices that are approximately 30% higher than providers located in either North America or Australasia. Contrary to what one might expect, offset prices are generally higher, by roughly 20%, when projects are located in developing or least-developed nations. But this result does not hold for forestry-based projects. We find evidence that forestry-based offsets sell at lower prices, and the result is particularly strong when projects are located in developing or least-developed nations. Offsets that are certified under the Clean Development Mechanism or the Gold Standard, and therefore qualify for emission reductions under the Kyoto Protocol, sell at a premium of more than 30%; however, third-party certification from the Voluntary Carbon Standard, one of the popular certifiers, is associated with a price discount. Variables that have no effect on offset prices are the number of projects that a provider manages and a provider's status as for-profit or not-for-profit.

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The Regulation Of Non-Profit Organizations

Journal of Business & Economics Research (JBER) ◽

10.19030/jber.v9i9.5635 ◽

2011 ◽

Vol 9 (9) ◽

pp. 51 ◽

Cited By ~ 1

Author(s):

William A. Bottiglieri ◽

Steven L. Kroleski ◽

Kerri Conway

Keyword(s):

Font Size ◽

Non Profit ◽

For Profit ◽

Not For Profit ◽

Non Profit Organizations

The absence of governmental oversight and regulation of Not-For-Profit corporations has resulted in these entities performing their stated purposes inadequately and inefficiently and has enabled financial indiscretions which have tarnished their reputations. Enhanced oversight and regulation is needed to prevent recurrences of these failures.

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Assuring Not-For-Profit Hospital Competitiveness Through Proper Accounting For The True Cost Of Capital

Journal of Business & Economics Research (JBER) ◽

10.19030/jber.v8i11.42 ◽

2010 ◽

Vol 8 (11) ◽

Author(s):

Rakesh Duggal ◽

Michael Craig Budden

Keyword(s):

Cost Of Capital ◽

Profit Maximization ◽

Font Size ◽

Non Profit ◽

True Cost ◽

Wealth Maximization ◽

For Profit ◽

Not For Profit ◽

The Cost

The topic of cost of capital is very important, especially for not-for-profit (NFP) organizations.  Since profit maximization or stockholder wealth maximization cannot be their objective, NFP firms must be all the more aware of their costs, including the cost of capital, to sustain and grow the quality and quantity of their services to their consumers.  Yet, research into this topic has been lagging.  This paper adapts and enhances an existing methodology and illustrates how a non-profit hospital’s cost of capital can be estimated.

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Implementing A Balanced Scorecard In A Not-For-Profit Organization

Journal of Business & Economics Research (JBER) ◽

10.19030/jber.v6i9.2471 ◽

2011 ◽

Vol 6 (9) ◽

Cited By ~ 1

Author(s):

Michael Martello ◽

John G. Watson ◽

Michael J. Fischer

Keyword(s):

Balanced Scorecard ◽

Planning Process ◽

Rehabilitation Center ◽

Font Size ◽

The Balanced Scorecard ◽

For Profit ◽

Not For Profit ◽

Financial Perspective ◽

Customer Perspective ◽

Process Perspective

This paper examines the use of the Balanced Scorecard in a not-for-profit organization (Cattaraugus County ReHabilitation Center).  The ReHabilitation Center has begun using the Balanced Scorecard paradigm in its strategic planning process.  In this paper an overview is presented of the basic concepts of the Balanced Scorecard including the financial perspective, customer perspective, internal process perspective, and learning and growth perspective.  The history and services of the ReHabilitation Center are then summarized.  The application of the Balanced Scorecard approach to the ReHabilitation Center is discussed in detail.  Implications in using the Balanced Scorecard are discussed.  Finally, conclusions regarding the use of the Balanced Scorecard in a not-for-profit organization are presented.

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Views of NHS commissioners on commissioning support provision. Evidence from a qualitative study examining the early development of clinical commissioning groups in England

BMJ Open ◽

10.1136/bmjopen-2014-005970 ◽

2014 ◽

Vol 4 (10) ◽

pp. e005970 ◽

Cited By ~ 15

Author(s):

Christina Petsoulas ◽

Pauline Allen ◽

Kath Checkland ◽

Anna Coleman ◽

Julia Segar ◽

...

Keyword(s):

Case Study Research ◽

Support Functions ◽

Support Provision ◽

For Profit ◽

Administrative Costs ◽

Not For Profit ◽

Initial Stage ◽

Key Factor

ObjectiveThe 2010 healthcare reform in England introduced primary care-led commissioning in the National Health Service (NHS) by establishing clinical commissioning groups (CCGs). A key factor for the success of the reform is the provision of excellent commissioning support services to CCGs. The Government's aim is to create a vibrant market of competing providers of such services (from both for-profit and not-for-profit sectors). Until this market develops, however, commissioning support units (CSUs) have been created from which CCGs are buying commissioning support functions. This study explored the attitudes of CCGs towards outsourcing commissioning support functions during the initial stage of the reform.DesignThe research took place between September 2011 and June 2012. We used a case study research design in eight CCGs, conducting in-depth interviews, observation of meetings and analysis of policy documents.Setting/participantsWe conducted 96 interviews and observed 146 meetings (a total of approximately 439 h).ResultsMany CCGs were reluctant to outsource core commissioning support functions (such as contracting) for fear of losing local knowledge and trusted relationships. Others were disappointed by the absence of choice and saw CSUs as monopolies and a recreation of the abolished PCTs. Many expressed doubts about the expectation that outsourcing of commissioning support functions will result in lower administrative costs.ConclusionsGiven the nature of healthcare commissioning, outsourcing vital commissioning support functions may not be the preferred option of CCGs. Considerations of high transaction costs, and the risk of fragmentation of services and loss of trusted relationships involved in short-term contracting, may lead most CCGs to decide to form long-term partnerships with commissioning support suppliers in the future. This option, however, limits competition by creating ‘network closure’ and calls into question the Government's intention to create a vibrant market of commissioning support provision.

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The relevance and importance of business development and licensing in the biopharmaceutical industry.

Journal of Commercial Biotechnology ◽

10.5912/jcb592 ◽

2013 ◽

Vol 19 (3) ◽

Cited By ~ 3

Author(s):

Roger Davies

Keyword(s):

Best Practice ◽

Professional Associations ◽

Business Development ◽

Third Party ◽

Biopharmaceutical Industry ◽

For Profit ◽

Not For Profit ◽

Innovative Products ◽

Biotechnology Companies ◽

Training Courses

The importance of the business development and licensing (BD&L) function in the global biopharmaceutical industry has grown significantly over the past 20 years as pharmaceutical companies have sought to supplement their internal R&D with innovative products and technologies sourced from biotechnology and drug delivery companies. This has required companies to employ BD&L executives to search, evaluate, negotiate and alliance manage deals ranging from small biotechnology companies to the largest of the Big Pharma companies. Nowadays all the large companies have BD&L teams, sometimes in excess of 100 people. To inform new BD&L entrants and to improve the professionalism of the experienced BD&L executives, various training courses are offered by not-for-profit associations and commercial organisations. The leading not-for-profit association in Europe for biopharmaceutical executives is the Pharmaceutical Licensing Group and in the US it is the Licensing Executive Society. Both organisations offer basic training courses but as far as is known, the only university accredited Masterâ€™s degree qualification in BD&L is the distance learning MSc offered by the University of Manchester. The dissemination of specialist knowledge and best practice is through the journals and conferences of the professional associations. The need for well-qualified BD&L executives in the biopharmaceutical industry is demonstrated by the fact that 25% or more of Big Pharma sales come from third party products and the cost of licensing deals alone is over $200m on average.

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Heritage Treasures And Gifts: Improving Controls And Systems In A Not For Profit Environment

Journal of Business Case Studies (JBCS) ◽

10.19030/jbcs.v4i2.4758 ◽

2011 ◽

Vol 4 (2) ◽

pp. 89

Author(s):

Robert C. Zelin II ◽

Jane E. Baird

Keyword(s):

Financial Reporting ◽

Internal Controls ◽

Narrative Form ◽

Accounting Systems ◽

For Profit ◽

Class Project ◽

Not For Profit ◽

Gift Shop ◽

The Gift ◽

Previous Group

Not-for-profit organizations often rely heavily on volunteers to help them achieve their goals on very limited budgets. Often, these organizations are especially in need of volunteers with specific skills not possessed by the average volunteer. Such is the case with the County Historical Society (The Society), which is in need of help with certain aspects of its museum gift shop operations. Most of the volunteers and staff of the organization are avid history buffs, but know little about running a business and even less about accounting and systems related processes. Therefore, the organization has approached your professor to ask for your assistance. The Society would like to seek the benefit of your knowledge of accounting systems and internal controls to help it improve operations and financial reporting for the gift shop. A previous group of students has documented the operations in narrative form as part of a class project. The Society would now like specific recommendations for ways to improve internal controls. It would also like to begin to upgrade its systems for inventory tracking, starting with its records for consignment inventory.

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