Financial Management
2021-2022
Health Care Management
Erasmus University
Merel21
Week 1.........................................................................................................................................................2
Lecture Framework financial analysis......................................................................................................2
YouTube videos – accounting..................................................................................................................3
Financial versus managerial accounting...............................................................................................3
Gross profit margin (GPM)...................................................................................................................3
Operating profit margin (OPM)............................................................................................................4
Net profit margin (NPM)......................................................................................................................4
Working group practicing financial analysis.............................................................................................4
Week 2.........................................................................................................................................................5
Lecture Framework management control system/ performance measurement system.........................5
Working group financial analysis.............................................................................................................6
Week 3.........................................................................................................................................................8
Lecture Introduction group project.........................................................................................................8
Working group management control systems.........................................................................................8
Week 4.......................................................................................................................................................10
Lecture Advice framework introduction into advice-giving and advice-taking literature......................10
Working group implementation and advice..........................................................................................11
Week 5.......................................................................................................................................................11
, Lecture Panel debate.............................................................................................................................11
Working group peer feedback...............................................................................................................11
Week 6.......................................................................................................................................................12
No lecture..............................................................................................................................................12
No working group..................................................................................................................................12
Week 7.......................................................................................................................................................12
Lecture Recap and questions.................................................................................................................12
Extra material............................................................................................................................................12
YouTube videos.....................................................................................................................................12
Business Dictionary – What is organizational structure?...................................................................12
Market Business News Video Dictionary – NL What Is organizational structure?..............................12
Rutgers Accounting Web – Management control..............................................................................13
Paulino Silva – Management control systems....................................................................................14
WHY on Controlling – Management control......................................................................................15
Tom Malone – Decentralized decision making..................................................................................15
Week 1
Lecture Framework financial analysis
Role of financial analyses:
1. Analyze the financial health of an organization and make improvement suggestions
2. Give advice on a decision with financial consequences
Ratios are the guiding stars for the management of organizations. They provide their targets and
standards. They are helpful to managers in directing towards long-term strategies and effective short-
term decision-making. Ratios are used similarly to how doctors use diagnostics to assess health
conditions: a T-cell count if she expects an immunodeficiency disorder.
Ratios require a norm/standard. Medical norms differ per age/gender. Ratio's interpretation differs per
sector/environment. A simple measure does not suffice (interrelations).
Assets, liquidity, profit.
Balance sheet: an instant snapshot of the assets used and of the funds related to those assets. It is a
statistic document relating to one point in time. We therefore take repeated snapshots at fixed intervals
– months, quarters, years – to see how the assets and funds change with the passage of time. It shows a
state, not a flow!
Income statement/profit or loss account: measures the gains or losses from both normal and abnormal
operations over a period of time. It measures total revenues and deducts total cost. Not a photo, but
2021-2022
Health Care Management
Erasmus University
Merel21
Week 1.........................................................................................................................................................2
Lecture Framework financial analysis......................................................................................................2
YouTube videos – accounting..................................................................................................................3
Financial versus managerial accounting...............................................................................................3
Gross profit margin (GPM)...................................................................................................................3
Operating profit margin (OPM)............................................................................................................4
Net profit margin (NPM)......................................................................................................................4
Working group practicing financial analysis.............................................................................................4
Week 2.........................................................................................................................................................5
Lecture Framework management control system/ performance measurement system.........................5
Working group financial analysis.............................................................................................................6
Week 3.........................................................................................................................................................8
Lecture Introduction group project.........................................................................................................8
Working group management control systems.........................................................................................8
Week 4.......................................................................................................................................................10
Lecture Advice framework introduction into advice-giving and advice-taking literature......................10
Working group implementation and advice..........................................................................................11
Week 5.......................................................................................................................................................11
, Lecture Panel debate.............................................................................................................................11
Working group peer feedback...............................................................................................................11
Week 6.......................................................................................................................................................12
No lecture..............................................................................................................................................12
No working group..................................................................................................................................12
Week 7.......................................................................................................................................................12
Lecture Recap and questions.................................................................................................................12
Extra material............................................................................................................................................12
YouTube videos.....................................................................................................................................12
Business Dictionary – What is organizational structure?...................................................................12
Market Business News Video Dictionary – NL What Is organizational structure?..............................12
Rutgers Accounting Web – Management control..............................................................................13
Paulino Silva – Management control systems....................................................................................14
WHY on Controlling – Management control......................................................................................15
Tom Malone – Decentralized decision making..................................................................................15
Week 1
Lecture Framework financial analysis
Role of financial analyses:
1. Analyze the financial health of an organization and make improvement suggestions
2. Give advice on a decision with financial consequences
Ratios are the guiding stars for the management of organizations. They provide their targets and
standards. They are helpful to managers in directing towards long-term strategies and effective short-
term decision-making. Ratios are used similarly to how doctors use diagnostics to assess health
conditions: a T-cell count if she expects an immunodeficiency disorder.
Ratios require a norm/standard. Medical norms differ per age/gender. Ratio's interpretation differs per
sector/environment. A simple measure does not suffice (interrelations).
Assets, liquidity, profit.
Balance sheet: an instant snapshot of the assets used and of the funds related to those assets. It is a
statistic document relating to one point in time. We therefore take repeated snapshots at fixed intervals
– months, quarters, years – to see how the assets and funds change with the passage of time. It shows a
state, not a flow!
Income statement/profit or loss account: measures the gains or losses from both normal and abnormal
operations over a period of time. It measures total revenues and deducts total cost. Not a photo, but
