Module HEAS40430: Economics and Accounting for Clinical Managers

Department: Health [Queen's Campus, Stockton]

HEAS40430: Economics and Accounting for Clinical Managers

Prerequisites

• None

Corequisites

• None

Excluded Combination of Modules

• None

Aims

• This module is designed as a Level 4 module and is the second in the proposed suite of Clinical Management programmes. In general terms the aims of the module are that students:
• develop a working knowledge of the conceptual foundations of economics, major issues in health economics and how economic forces can affect resource allocation and.with that, service provision. Whilst including an overview of macroeconomics and how events in the wider economy might affect the healthcare sector, the emphasis is upon microeconomics - against this background students will be required to consider how economic concepts and levers might be used to assess priorities and reconfigure existing patterns of service provision, and how to critically appraise an economics publication in a health-related field;
• gain a working knowledge of financial accounting cocnepts, terminology and principles and how accounting information might be used in clinical settings;
• understand how the accounting aspect of this module complements the economics component in making clinical managerial decisions (primarily through revenue and costs).

Content

• Refer to the Learning Outcomes of this Module Outline.
• More generally, this Module is designed to operate on two levels. The content reflects this. Firstly, it covers the conceptual foundations of economics, major issues in health economics and how economic forces can affect resource allocation and, with that, service provision. Whilst including an overview of macroeconomics and how events in the wider economy might affect the healthcare sector, the emphasis is upon microeconomics and how economic levers might be used to reconfigure existing patterns of service provision.
• Secondly, the course provides students with a basic understanding of financial accounting concepts, terminology and principles and how accounting information might be used in clinical settings to manage resource flows. Students will be expected to understand how the accounting aspect of this module complements the economics component (primarily through an understanding of costs and revenues) in making clinical managerial decisions.

Learning Outcomes

• On completion of the course students will have gained, in broad terms, an understanding of:
• principles of economics (in particular demand and supply, marginal analysis, funding methods);
• how these can be applied to assess priorities and resolve some of the major resource allocation and rationing problems in health;
• appraisal of economic evaluations of health care services;
• principles of health accounting and how these apply to the management of clinical work;
• Concerning Health Economics, students will have gained an understanding of:
• -the fundamental prinicples of economics;
• -the characteristics of health 'markets';
• -principles that underlie different approaches to health funding and how these affect supply and demand services;
• -the measures that are used for economic evaluations of costs and benefits and hence the setting of -priorities;
• Concerning Health Accounting, students will have gained an understanding of:
• -distinguish between a balance sheet, a profit and loss (or income) statement and a statement of cash flows;
• -understand and be able to 'read' the primary financial statements of their trust;
• -understand the difference between cash and accrual accounting;
• -know the meaning of the various budgeting terminology (e.g. global, program, flexible and zero-based);
• -explain the nature, limitations and advantages of cost accoutnig systems;
• -know how to use accoutnig information in both structuring resource allocation decisions within clinical settings and in monitoring performance;
• -understand the principles of accounting in healthcare and how these apply to the management of clinical work.

• Concerning Health Economics, students will have developed skills in:
• -applying the concepts of demand and supply in different healthcare market structures;
• -calculating how a change in 'price' or payment will affect demand and/or supply in service provision;
• -analysing the economic considerations of a published clinical improvement paper;
• -critically assessing the incentive structures that are created by different funding systems including insurance based systems, and casemix based commissioning & performance management systems and how these affect both clinical service provision and clinical management.
• Concerning Health Accounting, students will have developed skills in:
• -preparing a simple set of financial statements;
• -preparing a basic budget for a health service department on both a profit/loss and cash basis;
• -comparing and analysing actual figures against budgeted figures;
• -determining how costs behave as the number of patients change;
• -distinguishing between relevant and irrelevant costs when making financial decisions;
• -determining a unit cost for producing a health care service including costing of clinical pathways;
• -allocating costs from one cost centre (clinical department) to another.

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

• See Appendix 1 of the Programme Specification for details.
• Teaching in this module will comprise: lectures, structures reading (as part of independent study), exercises, tutorials, group work, and written work.
• Lectures, individual study (including structured reading) provide the main means for communicating key concepts; written work provides the means for marshalling arguments and presenting them in a sound and convincing fashion.
• The practical exercises will enable students to test their understanding of these principles within specific situations and case studies. They also allow students to practice the skills neccessary for conducting an economic and accounting analysis of a clinical unit's potential and actual performance. These exercises can be conducted in groups as students learn from each other in appraising the economic performance of their settings and suggest ways to improve them.

Teaching Methods and Learning Hours

Summative Assessment

Formative Assessment:

■ Attendance at all activities marked with this symbol will be monitored. Students who fail to attend these activities, or to complete the summative or formative assessment specified above, will be subject to the procedures defined in the University's General Regulation V, and may be required to leave the University