Essentials of Health Care Finance

By Bohn, James G. | Journal of Risk and Insurance, March 1999 | Go to article overview

Essentials of Health Care Finance


Bohn, James G., Journal of Risk and Insurance


Essentials of Health Care Finance, Fourth Edition, by William 0. Cleverley (Aspen Publishers, 1997)

When this text first appeared in 1978, the title was Essentials of Hospital Finance. The first edition primarily dealt with the analysis of hospital financial statements. The current edition goes beyond financial accounting and addresses issues concerning managerial accounting and finance issues. Coverage has been expanded to include a variety of health care organizations such as nursing homes, clinics and managed care organizations.

Cleverley's text is well suited for use as the primary text for an undergraduate or lower-level graduate financial management course in a health care management, health policy, medical or nursing school curricula. The text would also work well for use in an executive or continuing education course for midlevel managers in the health care industry. The emphasis of the book is heavily slanted towards health care providers rather than private or public health insurers. Therefore, it is unlikely that this text would work well for a course in the risk management and insurance, health care economics, or public finance areas.

The text is reasonably self contained. There are chapters on the essential principals of accounting and financial analysis, such as the time value of money, which provide the basic tools for application in other chapters. If used as part of a degree program, it would be helpful but not essential if the student had a background in accounting commensurate with a first undergraduate course in accounting principals. Students with some experience in the industry will likely have sufficient practical experience that the reviews of basic principals contained in the text should be sufficient. …

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