Cheryl Jones - Financial Management for Nurse Managers and Executives--E-Book

FINANCIAL MANAGEMENT for Nurse Managers and Executives

FOURTH EDITION

STEVEN A. FINKLER, PhD, CPA

Professor Emeritus of Public and Health Administration, Accounting, and Financial Management, Program in Health Policy and Management, Robert F. Wagner Graduate School of Public Service, New York University, New York, New York

CHERYL BLAND JONES, PhD, RN, FAAN

Associate Professor, School of Nursing, Research Program Consultant, Nursing Division UNC Hospitals , Research Fellow, Sheps Center for Health Services Research , University of North Carolina at Chapel Hill, Chapel Hill, North Carolina

CHRISTINE T. KOVNER, PhD, RN, FAAN

Professor, College of Nursing, Senior Faculty Associate, Hartford Institute for Geriatric Nursing, Nurse Attending, New York University Langone Medical Center, New York University, New York, New York

Saunders

Copyright

3251 Riverport Lane

St. Louis, MO 63043

FINANCIAL MANAGEMENT FOR NURSE MANAGERS AND EXECUTIVES ISBN: 978-1-4557-0088-2

Copyright 2013, 2007, 2000, 1993 by Saunders, an imprint of Elsevier Inc.

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Notices

Knowledge and best practice in this field are constantly changing. As new research and experience broaden our understanding, changes in research methods, professional practices, or medical treatment may become necessary.

Practitioners and researchers must always rely on their own experience and knowledge in evaluating and using any information, methods, compounds, or experiments described herein. In using such information or methods they should be mindful of their own safety and the safety of others, including parties for whom they have a professional responsibility.

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Previous editions copyrighted 2007, 2000, 1993 by Saunders, an imprint of Elsevier Inc.

Library of Congress Cataloging-in-Publication Data

Finkler, Steven A.

Financial management for nurse managers and executives / Steven A. Finkler, Cheryl Bland Jones, Christine T. Kovner. 4th ed.

p. ; cm.

Includes bibliographical references and index.

ISBN 978-1-4557-0088-2 (pbk. : alk. paper)

I. Jones, Cheryl Bland. II. Kovner, Christine Tassone. III. Title.

[DNLM: 1. Financial ManagementmethodsUnited StatesNurses Instruction. 2. Delivery of Health CareeconomicsUnited StatesNurses Instruction. 3. Nurse AdministratorsUnited States. W 74 AA1]

362.173068dc23

2012010877

Senior Content Strategist: Yvonne Alexopoulos

Senior Content Development Specialist: Karen C. Turner

Associate Content Development Specialist: Emily Vaughters

Content Coordinator: Kit Blanke

Publishing Services Managers: Hemamalini Rajendrababu & Deborah L. Vogel

Project Managers: Prathibha Mehta & John W. Gabbert

Design Direction: Teresa McBryan

Printed in the United States of America

Last digit is the print number: 9 8 7 6 5 4 3 2 1

Dedication

To our friends, with great appreciation for all that we have learned from you

SAF, CBJ, and CTK

Reviewers

Tammy S. Czyzewski, BA, BSN, MS, RN-BC, NEA-BC

Assistant Professor of Nursing, Sinclair Community College, Dayton, Ohio

Victoria Todd Durkee, PhD, APRN

Associate Professor, Nursing Department, University of Louisiana at Monroe, Monroe, Louisiana

Deborah Lessard, RN, BSN, MA, JD, CPHRM

Adjunct Faculty, Graduate Nursing, Carlow University, Pittsburgh, Pennsylvania

Connie Mullinix, PhD, MPH, MBA, RN

Clinical Associate Professor, MSN-Leadership Concentration, Department of Graduate Nursing Science, College of Nursing, East Carolina University, Greenville, North Carolina

Preface

We are extremely pleased to present the fourth edition of Financial Management for Nurse Managers and Executives. This edition builds on the successes of the first, second, and third editions and takes advantage of the many helpful comments that we have received over the years from colleagues and students. As we thought about writing the fourth edition of this book, we reflected on what has worked well in prior editions and the improvements that were needed. Much of the content has stood the test of time.

Nevertheless, we believed that substantial revisions were necessary for the fourth edition of the book to reflect the many changes that have occurred in nursing and health care. Of course, numbers and facts throughout the book required updating. In addition, we have made changes throughout this edition based on our own knowledge and perceptions of changes in the field, as well as feedback solicited from reviewers and current users of the third edition of the text.

First, we have updated the content in several chapters and added content on current issues in health care financing that cut across health care settings. Some of the revisions and additions include the following:

was updated considerably to include details on health care reformparticularly the Patient Protection and Affordable Care Actin relation to what it means for health care providers, managers, and executives. We also discuss nurses roles in a reformed health care system. Federal government initiatives to stop paying hospitals and other providers for errors and preventable health careacquired conditions are also explored. The concept of pay for performance, or value-based purchasing, is also introduced in this chapter, and the implications for nursing services are addressed. We also introduce content on the Institute of Medicines Future of Nursing report (2011) in this chapter and reinforce it further in subsequent chapters.