This book introduces financial management in the context of the healthcare organization and the broader healthcare environment. The core finance topics are covered — working capital, resource allocation, and financial analysis — with a focus on the unique aspects of healthcare financial management. The objectives of healthcare financial management, the tax status of healthcare organizations, and third-party payers and payment methodologies are explained. A comprehensive overview of Medicare and Medicaid is also provided. New in this edition This edition has been thoroughly updated and redesigned to engage readers in learning. Key points, discussion questions, and on-page definitions are now included. The previously separate practice- problems book has been updated and folded into the text, providing many additional opportunities for readers to test their knowledge. The book concludes with a comprehensive case study that brings all the concepts together. The chapters on Medicare and Medicaid have been significantly expanded and updated to include information on healthcare reform and new laws pertaining to fraud and abuse.