Associate Professor of Health Management and Policy
Introduction to Healthcare Finance
What You'll Learn
- Evaluate investment opportunities
- Build financial models for business planning.
- Develop business strategies based on financial models.
4 Modules
12 Hours
3 hrs per module (approx.)
Rating
About Introduction to Healthcare Finance
Introduction to Healthcare Finance equips healthcare leaders with fundamental finance tools and concepts necessary for effective collaboration with experts and managing organizations. In this course, you’ll explore healthcare pricing, investment valuation, and pharmaceutical research and development costing. You will consider the motivation, consequences, and valuation techniques essential to helping you make strategic decisions and engage in effective bargaining in healthcare mergers and acquisitions. Get an inside look at the variations and complexities of healthcare pricing, trade-offs between financial risk and performance incentives, and the bargaining processes vital to pricing strategies and organizational viability. Financial valuation techniques, such as net present value and internal rate of return, are explored alongside financial risk considerations and opportunity costs.
Skills You'll Gain
- Financial Analysis
- Market Value
- Mergers & Acquisitions
- Stock Valuation
What You'll Earn
- Certificate of Completion:
- Certificates of completion acknowledge knowledge acquired upon completion of a non-credit course or program.
Welcome Message
Welcome to Introduction to Healthcare Finance, the third course in the Healthcare Management and Finance series. This course introduces core corporate finance concepts as they apply to healthcare organizations. You will explore healthcare pricing and incentives, evaluate investment opportunities, and build financial models to support business planning and strategy. By developing practical, model-based insights, you will strengthen your ability to make informed financial decisions in complex healthcare environments.
This abbreviated syllabus description was created with the help of AI tools and reviewed by staff. The full syllabus is available to those who enroll in the course.
Course Schedule
Module 1: An Introduction to Healthcare Pricing
- Video: Welcome and Introduction
- Reading: Course Syllabus
- Reading: Meet Your Instructor
- Reading: Pre-Course Survey
- Video: Week 1 Introduction
- Reading: RAND Reports on Healthcare Pricing
- Video: Introduction to Health Services Pricing
- Video: Healthcare Price Variation
- Video: Hospital Markups and Prices
- Graded Assignment: Ungraded Knowledge Check
- Video: Bargaining and Healthcare Prices
- Graded Assignment: Ungraded Knowledge Check
- Video: Pricing and Medical Costs
- Video: Implications of Price Transparency in Healthcare
- Graded: Week 1 Graded Assessment
Module 2: Modeling Time, Risk, and Return to Value Investments
- Video: Week 2 Introduction
- Reading: Introduction to Time, Risk, and Return
- Video: Time, Risk, and Return
- Video: Net Present Value
- Video: Introduction to Demo 1: Future Value
- Reading: Spreadsheets Used in Week 2 Demos
- Video: Demo 1: Future value
- Video: Internal Rate of Return
- Reading: Cost of Capital Lexicon
- Video: Introduction to Demo 2: Present Value and the Internal Rate of Return
- Video: Demo 2: Present Value and the Internal Rate of Return
- Video: Introduction to Demo 3: Net Present Value and Internal Rate of Return Applied
- Video: Demo 3: Net Present Value and Internal Rate of Return Applied
- Graded Assignment: Ungraded Knowledge Check
- Graded: Week 2 Graded Assessment
Module 3: Measuring the Cost of Pharmaceutical Research & Development (R&D)
- Video: Week 3 Introduction
- Reading: DiMasi et al. (2016), Innovation in the pharmaceutical industry: New estimates of R&D cost
- Video: Introduction to Demo: Financial Model of the Cost of Pharmaceutical R&D
- Reading: Spreadsheets Used in Cost of Pharmaceutical R&D Demo
- Video: Demo: Financial Model of the Cost of Pharmaceutical R&D
- Graded Assignment: Ungraded Knowledge Check
- Video: Modeling the Cost of Pharmaceutical R&D
- Video: Critiques of DiMasi et al. (2016): Part 1
- Video: Critiques of DiMasi et al. (2016): Part 2
- Graded Assignment: Ungraded Knowledge Check
- Video: Introduction to Demo: Alternative Financial Valuations
- Reading: Spreadsheets used in Alternative Financial Valuation Demo
- Video: Demo: Alternative Financial Valuations
- Reading: Ten Challenges in the Prescription Drug Market—and Ten Solutions
- Graded: Week 3 Graded Assessment
Module 4: Financial Models of Mergers and Acquisitions (M&A)
- Video: Week 4 Introduction
- Reading: The Price Ain’t Right? Hospital Prices And Health Spending On The Privately Insured
- Video: M&A-Part 1
- Video: M&A-Part 2
- Video: M&A-Part 3
- Video: M&A-Part 4
- Graded Assignment: Ungraded Knowledge Check
- Video: M&A Valuation- Part 1
- Video: M&A Valuation- Part 2
- Video: M&A Valuation- Part 3
- Video: Introduction to Demo 1A- M&A Valuation
- Reading: Spreadsheets Used in M&A Valuation Demos (1A, 1B, 1C)
- Video: Demo 1A- M&A Valuation: Learning Objectives and Model Assumptions
- Video: Introduction to Demo 1B- M & A Valuation
- Video: Demo 1B- M&A Valuation: The Target Hospital's Perspective
- Video: Introduction to Demo 1C- M&A Valuation the Acquirer's Perspective
- Video: Demo 1C- M&A Valuation: The Acquirer’s Perspective
- Graded Assignment: Ungraded Knowledge Check
- Video: Introduction to Demo 2: Bargaining and Information
- Reading: Spreadsheets used in Bargaining and Information Demo
- Video: Demo 2: Bargaining and Information
- Graded Assignment: Ungraded Knowledge Check
- Video: Course Summary
- Reading: Post-Course Survey
- Graded: Week 4 Graded Assessment
Grading Policy
Learners must earn an overall course grade of 80% to pass. Ungraded practice quizzes are available each week for skill-building, while graded weekly assessments determine the final grade, with each of the four graded assessments worth 25% of your total grade.
Course content developed by U-M faculty and managed by the university. Faculty titles and affiliations are updated periodically.
Intermediate Level
Some related experience required
