Course

Corporate Finance for Healthcare Administrators

University of Michigan

This comprehensive course is designed for healthcare administrators seeking to enhance their financial acumen. It covers critical aspects of corporate finance necessary for effective management of healthcare organizations. Key topics include:

  • Finance and the role of the financial manager
  • Financial mathematics for decision-making
  • Valuation of stocks and bonds
  • Net present value calculations
  • Capital expenditure analysis and risk assessment
  • Understanding risk and return relationships
  • Determining discount rates for projects
  • Business valuation and financing strategies
  • Capital structure and dividend policy considerations
  • Lease financing and financial analysis planning

By completing this course, administrators will gain the knowledge and tools necessary to navigate financial challenges within the healthcare sector.

Course Lectures
  • This module delves into the crucial role of finance in healthcare organizations. Participants will learn about the responsibilities of financial managers, including:

    • Assessing financial health
    • Budget management
    • Strategic financial planning

    Understanding these aspects is vital for effective leadership in healthcare administration.

  • Financial Math I
    Jack Wheeler

    In this module, participants will grasp the fundamentals of financial mathematics, focusing on calculations that support decision-making in healthcare settings. Key topics include:

    • Time value of money
    • Interest rate calculations
    • Discounting cash flows

    Mastering these concepts allows administrators to evaluate investment opportunities effectively.

  • Financial Math II
    Jack Wheeler

    This module expands on financial mathematics from the previous lesson, introducing more complex calculations. Participants will learn about:

    • Present value and future value
    • Amortization schedules
    • Calculating annuities and perpetuities

    These advanced techniques are crucial for long-term financial planning in healthcare organizations.

  • This module covers the processes involved in valuing stocks and bonds, which is essential for healthcare administrators. Key learning points include:

    • Understanding stock market dynamics
    • Methods for valuing stocks
    • Bond valuation techniques

    These skills empower administrators to make informed investment decisions and manage organizational funds more effectively.

  • Net Present Value
    Jack Wheeler

    This module focuses on net present value (NPV) calculations, a critical concept in investment assessment. Participants will learn how to:

    • Calculate NPV for various projects
    • Interpret NPV results for decision-making
    • Apply NPV in healthcare investments

    Understanding NPV is essential for evaluating the profitability and feasibility of potential projects.

  • This module emphasizes capital expenditure (CapEx) analysis, which is vital for strategic financial planning in healthcare organizations. Participants will explore:

    • Identifying CapEx needs
    • Evaluating CapEx projects
    • Budgeting for capital expenditures

    Learning effective CapEx analysis ensures that healthcare administrators allocate resources wisely and support organizational goals.

  • This module introduces participants to capital expenditure risk analysis, helping them understand the potential risks associated with large investments. Key topics include:

    • Identifying risks in CapEx projects
    • Mitigation strategies for financial risks
    • Assessment of project feasibility

    By mastering these concepts, healthcare administrators can better protect their organizations from financial uncertainties.

  • This module bridges capital expenditure with strategic planning, emphasizing how investment decisions align with organizational goals. Participants will learn:

    • Integrating CapEx into strategic planning
    • Evaluating long-term benefits of investments
    • Aligning financial decisions with healthcare objectives

    Understanding this relationship is essential for effective leadership in healthcare finance.

  • Risk and Return
    Jack Wheeler

    This module focuses on the concepts of risk and return, critical to making informed investment choices. Key learning points include:

    • Understanding risk factors in healthcare investments
    • Evaluating expected returns
    • Balancing risk with potential rewards

    Healthcare administrators will learn to assess their investments judiciously and make decisions that align with their risk tolerance.

  • This module covers discount rate determination, which is crucial for evaluating the attractiveness of investments. Participants will learn about:

    • Factors influencing discount rates
    • Calculating appropriate rates for healthcare projects
    • Application of discount rates in financial analysis

    Understanding discount rates enables healthcare administrators to assess the value of future cash flows accurately.

  • Project Discount Rate
    Jack Wheeler

    This module dives into project discount rates, teaching participants how to determine the appropriate rates for specific healthcare projects. Key aspects include:

    • Factors affecting project rates
    • Comparison of project discount rates
    • Application in project feasibility studies

    By mastering project discount rates, administrators can make informed decisions regarding project viability.

  • Business Valuation
    Jack Wheeler

    This module introduces participants to business valuation techniques, essential for assessing the worth of healthcare organizations. Key learning points include:

    • Methods for valuing businesses
    • Understanding market dynamics
    • Application in mergers and acquisitions

    Healthcare administrators will learn how to conduct valuations that inform strategic decisions and investments.

  • Financing Math
    Jack Wheeler

    This module focuses on financing math, providing participants with the mathematical skills required for various financing scenarios in healthcare. Key topics include:

    • Loan calculations
    • Understanding debt instruments
    • Evaluating financing options

    Mastering financing math enables administrators to make sound financial decisions regarding funding and investments.

  • Equity
    Jack Wheeler

    This module explores equity financing, covering the methods and implications of raising funds through equity. Participants will learn:

    • Types of equity financing
    • Investor expectations and rights
    • Impact of equity financing on healthcare organizations

    Understanding these concepts is essential for making informed decisions regarding capital structure and funding sources.

  • This module examines the relationship between corporate finance and financial markets, providing insights into how these areas intersect. Participants will explore:

    • The role of financial markets in corporate finance
    • Understanding market trends and their impact
    • Investment strategies based on market analysis

    By understanding this relationship, healthcare administrators can make more informed financial decisions.

  • Debt
    Jack Wheeler

    This module focuses on debt financing, teaching participants about various debt instruments and their implications. Key topics include:

    • Types of debt financing
    • Understanding interest rates and payment structures
    • Evaluating the impact of debt on financial health

    Healthcare administrators will learn how to strategically use debt to finance operations and growth.

  • Dividend Policy
    Jack Wheeler

    This module addresses dividend policy and its significance for healthcare organizations. Participants will learn:

    • Types of dividend policies
    • Factors influencing dividend decisions
    • Impact of dividends on capital structure

    Understanding dividend policies helps administrators make informed decisions regarding profit distribution and organizational growth.

  • Capital Structure
    Jack Wheeler

    This module covers capital structure, exploring how organizations finance their operations and growth. Participants will learn about:

    • Components of capital structure
    • Impact of capital structure on risk and return
    • Strategies for optimizing capital structure

    Understanding capital structure is essential for effective financial management in healthcare organizations.

  • Lease Financing
    Jack Wheeler

    This module examines lease financing, providing insights into its advantages and implications for healthcare organizations. Key topics include:

    • Types of lease financing
    • Evaluating lease vs. buy decisions
    • Impact of leasing on financial statements

    Healthcare administrators will learn how to leverage lease financing for operational flexibility and cost management.

  • This final module focuses on financial analysis and planning, emphasizing its importance for effective healthcare management. Participants will learn about:

    • Key financial metrics and ratios
    • Developing financial forecasts
    • Strategic planning based on financial data

    By mastering financial analysis, healthcare administrators can ensure sustainable growth and operational efficiency.