Healthcare Economics and Financial Management (PHCM9441)

Course outcomes

The aim of this course is to provide you with core capabilities in understanding and applying financial concepts and techniques as well as the principles and tools of healthcare economics to inform your decision-making as a healthcare manager.

In Module 1, the aim is to introduce you to issues and theoretical perspectives of health economics and to enable you to relate these concepts and approaches to your own personal and work experiences so you have a better perspective on how the overall Australian health system functions. In Module 2, the aim is to introduce you to fundamental accounting methods that you can apply to a health service context and equip you with practical skills that will help you become a better healthcare manager.

By the end of Module 1, you should be able to:

• identify and outline the key aims, concepts and principles of health economics

• outline the unique features of the healthcare market and how these influence decisions relating to equity and efficiency

• explain the reasons why governments intervene in the healthcare industry and the impact this has on the demand for health services

• identify specific factors that influence the current and future demand and supply of health care

• explain the role, limitations and usefulness of economic analysis and economics as a way of thinking, particularly when applied to the healthcare sector

• discuss the advantages and disadvantages of activity-based funding as a means of financing the provision of health services.

By the end of Module 2, you should be able to:

• identify the three main financial statements – ie. the balance sheet, profit and loss statement and cash flow statement

• demonstrate a working knowledge of the doctrines and conventions of accounting, such as relevance, reliability, materiality and timeliness. 

• explain the difference between cash and accrual accounting

• calculate a break-even point for a health service

• construct a budget and analyse the difference between budgeted and actual outcomes

• apply these accounting concepts to better understanding the cost and revenue structures of the organisation in which you work

• outline the main features of the Australian healthcare system – in particular how health spending is managed and the roles and responsibilities of various levels of government and why health expenditure is increasing.