Principles of Healthcare Financial Management by Scott Lisbin

The cost of healthcare is expensive...and it just keeps climbing for both the providers and healthcare organizations that furnish the care, the insurance companies that pay for some or all of the care, and the patients that receive the care. These increases in the cost of healthcare result from the escalating costs for labor, materials/supplies, and technology, along with the increasing demands and expectations of patients. Overcoming such challenges without compromising access, quality, affordability, safety, or service is difficult. But it can be done through effective financial management and ensuring allocated resources are optimally utilized. It is estimated that approximately $1 out of every $3 to $4 spent in the delivery of healthcare represents “MUDA” or “waste”. Eliminating this “waste” can reduce departmental or organizational costs, improve profitability, and/or allow funds to be reallocated to other critical departmental or organizational needs or priorities (i.e., improving access, quality, safety, and/or service). LEAN six sigma, which was developed for the manufacturing industry, is one of the best approaches for eliminating such “MUDA” or “waste” and has tremendous applicability for improving the financial management of healthcare organizations. Most healthcare finance books focus on how to prepare and interpret budgets and financial statements (i.e., balance sheets, etc.).This book is different as the focus is on how to apply the principles of LEAN Six Sigma in the healthcare setting to eliminate the eight (8) different forms of “waste” (i.e., defects, overprocessing, etc.) in order to improve the financial management and ultimately the bottom line of your department, practice, or organization. This book is divided into five (5) chapters. Several appendices are also included to provide those readers who are interested with more technical and statistical detail on certain key principles covered in the book. The key topics covered in this book include: - What "waste" is - How "waste" can adversely impact the financial management (and bottom line) for your department or organization - How "waste" that may be present in your department, practice, or organization can be identified - How the cause(s) driving any such "waste" can be identified - How any such "waste" can be eliminated in order to improve the financial performance of your department, practice, and/or organization. This book is written specifically to assist healthcare professionals (from students to experienced managers and clinicians) understand key aspects of financial management that are often not covered in other books on management and/or financial management of healthcare organizations. An understanding of the concepts and principles covered in this book is critical for all healthcare professionals since an estimated $1 out of every $3 to $4 spent in the delivery of healthcare represents “ Read more