Training Course on Advanced Healthcare Financial Modeling & Management

Module 1 – Foundations of Healthcare Financial Management
Subtopics:
Unique features of healthcare finance: uncertainty of demand, third-party payers, regulation.
Overview of financial statements: revenue recognition in healthcare, deferred payments.
Key financial drivers in hospitals and clinics: bed occupancy, patient turnover, service mix.
Understanding cost centers and revenue centers in healthcare institutions.
Role of finance in healthcare quality and sustainability.
Practical: Analyze a hospital’s audited financial statements to identify strengths and weaknesses.

Module 2 – Introduction to Financial Modeling in Healthcare
Subtopics:
Principles of model design: transparency, flexibility, accuracy, consistency.
Structuring financial models: input sheets, assumption drivers, calculation blocks, output sheets.
Linking clinical indicators (bed days, admissions, case mix index) to financial outcomes.
Building assumptions for payer mix, reimbursement rates, and patient volumes.
Avoiding common errors in spreadsheet models.
Practical: Build a simple Excel model projecting outpatient clinic revenue by volume and reimbursement.

Module 3 – Healthcare Costing and Budgeting
Subtopics:
Cost classification: fixed vs variable, direct vs indirect, marginal vs average cost.
Activity-Based Costing (ABC) applied to healthcare services.
Budget types: incremental, zero-based, rolling forecasts.
Linking service demand forecasts with operating budgets.
Budget variance analysis and corrective actions.
Practical: Create a budget for a surgical unit including staff, supplies, and overheads, then conduct a variance analysis.

Module 4 – Revenue Forecasting and Cash Flow Management
Subtopics:
Patient demand forecasting: demographic trends, seasonal variations, epidemiological drivers.
Revenue cycle management: billing, coding, insurance claims, payment delays.
Modeling donor grants, insurance reimbursements, and government subsidies.
Cash flow forecasting methods (direct vs indirect).
Strategies for managing liquidity in hospitals.
Practical: Build a 12-month cash flow projection model for a hospital, factoring delayed reimbursements.

Module 5 – Capital Budgeting and Investment Appraisal
Subtopics:
Importance of capital investment in healthcare (infrastructure, equipment, technology).
Project evaluation methods: NPV, IRR, Payback Period, Profitability Index.
Incorporating inflation, taxation, and discount rates.
Evaluating healthcare PPP projects.
Common pitfalls in healthcare project appraisals.
Practical: Assess the financial feasibility of establishing a new dialysis unit using NPV and IRR.

Module 6 – Advanced Modeling Techniques
Subtopics:
Dynamic models: linking demand drivers to revenues and costs automatically.
Scenario analysis: optimistic, base case, worst case.
Sensitivity analysis: impact of changes in reimbursement, occupancy rates, staffing costs.
Monte Carlo simulations for healthcare project risk.
Stress-testing models under uncertain conditions (e.g., pandemics, regulatory change).
Practical: Build a sensitivity analysis tool in Excel to measure revenue impact of ±10% change in patient volume.

Module 7 – Risk Management in Healthcare Finance
Subtopics:
Identifying financial risks: operational, credit, liquidity, market, compliance.
Risk-adjusted cost of capital in healthcare.
Insurance and hedging strategies for financial stability.
Risk-sharing models with insurers and partners.
Crisis management: financial planning during epidemics or funding cuts.
Practical: Create a financial risk register and propose mitigation strategies for a hospital.

Module 8 – Performance Measurement and Benchmarking
Subtopics:
Key financial ratios in healthcare (operating margin, debt-to-equity, days cash on hand).
Linking financial KPIs with clinical KPIs (mortality rates, readmission rates, patient satisfaction).
Benchmarking performance across similar healthcare facilities.
Balanced Scorecard framework for healthcare organizations.
Financial dashboards for executive decision-making.
Practical: Develop a performance dashboard comparing two hospitals’ financial and clinical KPIs.

Module 9 – Strategic Healthcare Financing and Policy Context
Subtopics:
Overview of healthcare financing systems: Beveridge, Bismarck, and mixed models.
Global trends in healthcare financing: value-based care, bundled payments, capitation.
Role of donors, private equity, and philanthropy in healthcare funding.
Universal Health Coverage (UHC) financing challenges.
Policy frameworks influencing financial sustainability in healthcare systems.
Practical: Group debate on whether fee-for-service or capitation is more sustainable under UHC.

Module 10 – Capstone Project: Integrated Healthcare Financial Model
Subtopics:
Integrating revenue, cost, capital investment, and cash flow into a master model.
Preparing scenario-based strategic financial plans.
Creating executive dashboards for board-level reporting.
Presenting findings with financial storytelling for non-financial stakeholders.
Peer review and feedback on models.
Practical (Capstone): Each participant builds and presents a comprehensive financial model for a healthcare facility expansion (e.g., new hospital wing,
diagnostic unit, or specialty clinic)