Financial management for nurses - Book Report/Review Example

Financial Management for Nurses Financial Management for Nurses Summary Chapter 7 analyzes the process of analyzing financial statement information and the financial statement that define the analysis. The financial statements that define financial analysis in this context include the audit report of independent auditors, balance sheet, and operating statements, statement of cash flows, notes of financial statements, management reports, ration analysis, and the statement of changes in net assets or equity (Finkler, Jones & Kovner, 2012).

Moreover, this chapter defines the key financial concepts that establish a financial analysis. Ultimately, the chapter discusses the impact of analyzing financial statement information on nurse managers and executives. As such, this chapter helps in defining and explaining financial management for nurses.Chapter 8 explores cost analysis with respect to cost management especially in the health sector. This chapter defines and introduces cost management in health care and explains the basic concepts that drive cost analysis in any financial setup.

More so, this chapter discusses various techniques that help in cost estimation in the health sector. With respect to cost analysis, this chapter defines and discusses break-even analysis to establish the most convenient financial level to operate (Finkler et al., 2012). The chapter also discusses the impact of cost management on nurse managers and executives. According to this chapter, all nurse managers and executives should ensure that the financial position in healthcare should meet the break-even point for it to remain profitable.

This is only achievable through cost management.Chapter 9 discusses how to determine the healthcare costs and prices. The chapter highlights the factors to consider while determining the healthcare costs and prices. These factors include the costs for reporting versus the costs for management, traditional cost-finding methods, and costing out nursing services (Finkler et al., 2012). The chapter reckons a specific approach to costing nursing services that determines the healthcare costs and prices.

The chapter establishes product-line costing and activity-based costing as methods of determining the healthcare costs and prices. Moreover, it recognizes setting prices, nursing intensity weights, and financial reimbursement for nursing services as aspects that determine the healthcare costs and prices in healthcare (Finkler et al., 2012). Ultimately, the chapter establishes the key concepts of determining the healthcare costs and prices and defines the limits of the relative value unit approach as a procedure to determine the healthcare costs and prices.

The chapter discusses how determining the healthcare costs and prices influences nurse managers and executives.New Concept and its ApplicationProduct line costing was a new concept prior to the reading and it applied to the nursing practice. Ideally, product costing refers to an accounting process that determines all business expenses that relate to the creation of company products (Lister, 2014). These expenses may include raw material purchases, worker wages, production transportation costs, and retail stocking fees (Lister, 2014).

This concept can apply in the nursing practice where product line managers can use this concept to estimate the cost of intermediate and final products in an accurate and effective manner thus determining the costs of the product line. This would help the nurse managers and executives to determine the healthcare costs and prices.ReferencesFinkler, S., Jones, C., & Kovner, C. (2012). Financial Management for Nurse Managers and Executives. Amsterdam: Elsevier Health Sciences.Lister, J. (2014). Product Costing vs.

Cost Accounting. Retrieved from: http://smallbusiness.chron.com/product-costing-vs-cost-accounting-37642.html