Explains the role of budgeting as a key component of the administrative process. Students learn to develop a budget and evaluate the financial status of a department or operating unit and determine what, if any, corrective actions need to be taken. Presents various analytical methods in management decision making, including benefit/cost ratio analysis, variance analysis, and break-even analysis. Also includes approaches to benchmarking, productivity improvement techniques, and methods for building cost standards.

Upon completion of this course, you will be able to:

• Demonstrate an understanding of budgeting's role as a key component of the administrative process
• Develop budgets for revenues, staffing and salaries, supplies and services, and equipment
• Evaluate the financial status of a department or operating unit using volume adjusted variance analysis to determine the cause(s) of performance deviation
• Use a variety of analytical methods to support sound business decision-making: marginal analysis, benefit:cost ratio analysis, and breakeven analysis
• Demonstrate an understanding of revenue, cost, and productivity improvement techniques
• Build cost standards, perform bilateral performance mapping, and analyze process flow
• Demonstrate an understanding of how to perform useful benchmarking analysis
• Develop effective action/implementation plans

Information for individual lecture topics is obtained on the lecture main pages.

We divided the course into six modules:

• Module 1 introduces the concept of financial management, and discusses some financial paradigms
• Module 2 discusses performance planning and includes an introduction to planning and some methods for calculating expenses
• Module 3 discusses performance management, specifically the use of dashboard indicators
• Module 4 introduces some concepts of performance measurement, including variance analysis
• Module 5 continues the study of performance measurement and includes information on a broad variety of measurement techniques
• Module 6 offers concluding remarks for the course

We have divided the content of this course into six separate modules. You are to complete the material over a period of eight weeks. Each module consists of multiple lecture sections, reading assignments, and practice problems.

Homework assignments. Assignments consist of one or more of the various Micro Cases. They allow you to apply and reinforce what you have learned in the lectures. Please complete each of the five homework assignments using a single excel file. (You can use a separate worksheet for each Micro Case.) You must submit to the appropriate course Drop Box on the due dates listed on the Course Content page. You may submit assignments earlier than they are due, but we will not accept them once the due date/time has expired. Assignments count as part of the class participation grade for the course but are graded merely for completion and not for accuracy. 

• Homework 1: Micro cases 1 and 2
• Homework 2: Micro Cases 3, 4, and 5
• Homework 3: Micro Case 10
• Homework 4: Micro Cases 6, 7, 8, 9 and 12
• Homework 5: Micro Cases 11 and 13

Discussion sessions. During your course, there are scheduled LiveTalk discussions on the issues and concepts encountered during your studies. Check the Course Content page for dates. Attendance will be considered as part of the class participation grade.

Course bulletin board.  Throughout the course, comments, questions, observations and such are posted to the Bulletin Board. Students are expected to participate in the ongoing discussions on the Bulletin Board and such participation is considered as part of the class participation grade.

Examinations. A midterm and final examination are administered on the dates listed on the Course Content page. Both are open-book style and require that you work alone. You are allowed to consult any book you think might be of assistance. Your conduct on the exams must follow the Johns Hopkins University Academic Ethics in the Policy and Procedures Memorandum. Submit each exam via the Drop Box.

1.  Calculator
2.  Textbook: Ward Jr., William J. (1993). Healthcare Budgeting and Financial Management for Non-Financial Managers. Connecticut: Auburn House.

You can buy the textbook from any online bookstore, such as Amazon, or through the Matthews Johns Hopkins Medical Book Center (1830 East Monument Street, Baltimore, MD 21205 USA - 410-955-3931- 800-266-5725 - 410-955-0576 fax).

Reading assignments are posted in the Online Library.

The final course grade will be composed of the following segments:

• Midterm Examination: 40% of final grade (an open book, “take home” style exam patterned after the micro case homework problems and graded on a decrement basis – 5 points deducted for each conceptual error and 2 or 3 points off for each math error)
• Final Examination: 45% of final grade (an open book, “take home” style exam patterned after the Micro Case homework problems and graded on a decrement basis – 5 points deducted for each conceptual error and 2 or 3 points off for each math error)
• Class Participation: 15% of final grade is earned via homework assignments (timely completion of all assignments results in 5%, with no points earned for less than five submissions), BBS participation (a minimum of three postings to any of the various threads results in 5%, with no points earned for less than three postings), and LiveTalk attendance (attendance at a minimum of two sessions results in 5%, with no points earned for less than two sessions). A LiveTalk archive is available for those who are unable to attend the actual sessions.

Instructor Bill Ward (wward@jhsph.edu) Associate Public Health Professor Director, MHS Degree in Health Finance and Management Department of Health Policy and Management Johns Hopkins Bloomberg School of Public Health 406 Hampton House, Baltimore MD 21205 (410) 955-5317 (410) 955-6959 (Fax) Teaching Assistant Diwakar Mohan (dmohan@jhsph.edu)