Every organization must successfully manage its finances to survive. For the nurse who moves into any level of management position in the health care setting it is useful to have some understanding of the financial framework within which one’s daily decision must be made.
Every nurse is affected by the financial condition of the employer. To acquire enough understanding of finances to understand the strength and weakness of one’s employer is useful survival knowledge for the non-management nurse as well as nurses in managerial position who make decisions that affect the financial well being of the employer.
What You Will Learn
3.1 The Administrator's Role as Financial Manager
3.2 Generally Accepted Accounting Principles - the GAAPs
3.3 Two Approaches to Accounting: Cash Accounting and Accrual Accounting
3.4 The Two Main Steps in the Accounting Process: Recording Transactions and Preparing Financial Statements
3.5 Putting Financial Statements to Work: Working Capital, Ratio Analysis and Vertical Analysis
3.6 Additional Accounting Procedures that Help the Administrator Maintain Control Over the Facility
3.7 The Concept of Depreciation
3.8 Using "costs" in Managerial Decisions
3.8.1 Two Types of Costs: Variable and Fixed
3.9 Budgets and Budgeting
3.9.1 Two Methods of Budget Preparation
3.9.2 Five Steps in the Budgeting Process3.10 Finance
3.10.1 Sources of Law
3.10.2 The Court Systems
3.10.3 Legal Terminology
3.10.4 Risks Assumed by the Operation of a Long Term Care Facility
3.10.5 Business-Related Concepts and Terms
3.10.6 Insurance Terms
3.10.7 Terms Associated with Advanced Directives, Wills and Estates
• How the administrator fits into the financial aspect of nursing facility operation.