, Clinical Scenario Case Studies & guide
for
Financial Management for Public, Health, and Not-
for-Profit Organizations, 7th Edition
Each case includes:
A realistic scenario based on sector-specific financial
issues
Key issues related to accounting, budgeting,
reporting, or governance
Guiding questions to stimulate discussion and applied
problem-solving
A suggested solution grounded in financial best
practices
,Chapter 1: Introduction to Financial Management
28 Advanced Case Studies
Case Study 1
Case Scenario:
A regional non-profit hospital faces a growing gap between its patient
care costs and reimbursement rates from Medicaid and Medicare. The
finance director suspects that outdated financial management systems
are limiting cost control and revenue cycle efficiency. The hospital
board demands a strategic financial plan to ensure long-term
sustainability without compromising care quality.
Key Issues:
Underfunding from government payers
Inefficient financial systems and reporting
Balancing cost control with quality patient care
Strategic financial planning and sustainability
Guiding Questions:
How can financial management improve revenue cycle efficiency?
What strategies could close the funding gap without sacrificing
care?
What role does data and technology play in modern financial
management?
How should the board evaluate and support financial plans?
Suggested Solution:
Implement integrated financial management software to streamline
billing and claims processing. Conduct detailed cost analyses to identify
inefficiencies and potential savings. Explore alternative revenue streams
such as partnerships or grant funding. Maintain quality by prioritizing
, patient outcomes in financial decisions. Engage the board with
transparent, data-driven plans for accountability.
Case Study 2
Case Scenario:
A community-based mental health organization operates on multiple
grants and donations but lacks a comprehensive financial policy
framework. Frequent discrepancies in budget reporting and spending
have been reported, raising concerns about financial control and
compliance during an upcoming audit.
Key Issues:
Lack of financial policy and internal controls
Compliance risk with grant conditions
Inconsistent financial reporting
Audit preparedness
Guiding Questions:
What financial policies are critical for a grant-funded organization?
How can internal controls be established and enforced?
What best practices improve financial reporting accuracy?
How should the organization prepare for audits?
Suggested Solution:
Develop and enforce clear financial policies, including spending
approvals and segregation of duties. Train staff on compliance and
reporting standards. Implement routine internal audits and reconciliation
processes. Use financial software for standardized reporting. Prepare
thorough documentation to support audit requirements.
for
Financial Management for Public, Health, and Not-
for-Profit Organizations, 7th Edition
Each case includes:
A realistic scenario based on sector-specific financial
issues
Key issues related to accounting, budgeting,
reporting, or governance
Guiding questions to stimulate discussion and applied
problem-solving
A suggested solution grounded in financial best
practices
,Chapter 1: Introduction to Financial Management
28 Advanced Case Studies
Case Study 1
Case Scenario:
A regional non-profit hospital faces a growing gap between its patient
care costs and reimbursement rates from Medicaid and Medicare. The
finance director suspects that outdated financial management systems
are limiting cost control and revenue cycle efficiency. The hospital
board demands a strategic financial plan to ensure long-term
sustainability without compromising care quality.
Key Issues:
Underfunding from government payers
Inefficient financial systems and reporting
Balancing cost control with quality patient care
Strategic financial planning and sustainability
Guiding Questions:
How can financial management improve revenue cycle efficiency?
What strategies could close the funding gap without sacrificing
care?
What role does data and technology play in modern financial
management?
How should the board evaluate and support financial plans?
Suggested Solution:
Implement integrated financial management software to streamline
billing and claims processing. Conduct detailed cost analyses to identify
inefficiencies and potential savings. Explore alternative revenue streams
such as partnerships or grant funding. Maintain quality by prioritizing
, patient outcomes in financial decisions. Engage the board with
transparent, data-driven plans for accountability.
Case Study 2
Case Scenario:
A community-based mental health organization operates on multiple
grants and donations but lacks a comprehensive financial policy
framework. Frequent discrepancies in budget reporting and spending
have been reported, raising concerns about financial control and
compliance during an upcoming audit.
Key Issues:
Lack of financial policy and internal controls
Compliance risk with grant conditions
Inconsistent financial reporting
Audit preparedness
Guiding Questions:
What financial policies are critical for a grant-funded organization?
How can internal controls be established and enforced?
What best practices improve financial reporting accuracy?
How should the organization prepare for audits?
Suggested Solution:
Develop and enforce clear financial policies, including spending
approvals and segregation of duties. Train staff on compliance and
reporting standards. Implement routine internal audits and reconciliation
processes. Use financial software for standardized reporting. Prepare
thorough documentation to support audit requirements.
