Course Description

Prerequisite: None

This course introduces students to the fundamental principles of budgeting and accounting in healthcare organizations through a systems science perspective, emphasizing the interconnectedness of financial management and organizational performance. Designed for students without prior experience in finance, the course focuses on how financial decisions function as integral components of broader integrated organizational systems. Students will explore how financial inputs, processes, and outputs interact to influence the efficiency and sustainability of healthcare delivery, with efficiency defined as achieving the highest quality of care with optimal resource use. Core concepts in financial management and accounting are presented as tools for system optimization, including capital and cash budgeting, cost allocation, variance analysis, and performance monitoring. The course highlights how financial data serve as feedback mechanisms that inform strategic planning, implementation, and system-level adjustments. Students will also examine financial statements—such as balance sheets and cash flow statements—as dynamic system diagnostics, providing insight into organizational health and resilience. Additional topics include the structure and function of capital markets, asset valuation, and scenario-based decision-making (e.g., lease vs. buy), all within the context of adaptive system behavior and long-term sustainability. By mastering these concepts, students will be equipped to apply financial tools to support mission-driven, data-informed decisions in diverse and complex healthcare environments.