Running head: FINANCIAL MANAGEMENT OF HEALTH CARE ORGANIZATIONS
Financial management of health care organizations
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Introduction
Healthcare managers participate in various important roles that allow them to form and maintain flourishing organizations. Managers ought to be aware of the decisive elements of management and the generally accepted accounting principles. At the same time, they must realize, stick to, and put into effect the general financial ethical standards. Successful management of finances of healthcare is one of countless tests that mug the organization. Revenues and expenses of the organization are essential because they establish the external and internal finances of the company. The
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Confidentiality While working with clients, financial professionals have the right of entry to an enormous deal of personal information. Ethical standards necessitate that financial professionals have to keep the information confidential except for when ordered to disclose it by a court of law.
Four elements of financial management
Elements of financial management include planning, controlling, organizing and directing, and decision making.
Planning
This is the first pace in financial. It is the duty of financial manager to primarily recognize the goals of the company. The subsequently responsibility is to decide on the suitable steps that have to be applied achieve the goals of the company (Baker and Baker, 2007, p. 6).
Controlling
Controlling is the second pace in financial management. At this stage, the financial manager makes sure that every division of the organization tags on the decided plans. In controlling stage, managers will have to study the existing reports and compare them with the previous reports to help them comprehend and establish the division of the organization that is a need of the most attention (Baker and Baker, 2007, p. 6).
Organizing and directing
During organization, it is the task of the financial manager to choose on how to use the resources of the organization efficiently. Resources like funds or assets
The financial mangers goal is acquisition, financing, and management of assets. The challenges are investment, financing, and asset management decisions.
In organizing and directing the financial manager decides how to use the resources of the health care agency to best carryout the
Financial Management is an important aspect of how a business operates efficiently. The way that the finances are controlled can determine how successful the company is. The finances of a business allows for the growth of the company. The five practices of financial management: capital structure decision, investment appraisal techniques, dividend policy, working capital management and financial performance assessment are critical when assessing a company. The performance of a company plays a key role on how successful the company is on meeting goals. There are different strategies and tools that a company can implement and if they are used to effectively the company can meet their goals. If a company has good finances, a good
Financial Management: “The process for and the analysis of making financial decisions in the business context.” (Cornett, Adair, & Nofsinger, 2016, p. 5).
Each aspect plays a role, as financial management as a whole impacts the health care organization in a significant way. An example (that ties to evidence) of a primary component is the model analysis of the insurance system that affects the health budgeting spending on a statewide level. Further elaborating, the insurance system affects the input and output of the external categorization of the practical approach for a health care organization to utilize their primary care towards patients. Thus, as a result the aspects shift according to model process. Additionally, one’s perspective plays an important role in influencing decision-making in regards to financial management for healthcare. This is because the individual plays a primary role in the performance and internal indicators of the direction of the organizational mission; thus their output affects the organization’s advancement.
Describe the duties of the financial manager in a business firm. Financial managers measure the firm's performance,
The primary role of finance is to plan for, acquire, and use resources to maximize the efficiency and value of the enterprise.
b. As a financial manager, my focus would be on improving the firm’s cash flow and cash return on investments by determining which units in the business are generating or depleting the firm’s cash.
Effective financial management is the basis of thriving health care organizations. Organizations must make good investment decisions based on objective analysis (Healthcare Financial Management Association [HFMA], 2005). Integration of financial management principles provides decision makers with guidance to make capital decisions maximize mission-based benefits at effective costs (HFMA, 2005). An operating budget is the statement of profit and loss for the entire organization. Various health care entities prepare operating budget for the following year for discussion and approval by top management (Academic Writing Tips, 2011). At the end of the year, departmental managers provide an account for the previous year’s
Managers who are managing health care organizations must be attentive to the accounting practices and must obey and practice the financial management procedures to be able to solve any issues if any should arise. With the continuation of the high costs of health care managers as well as consumers must know how to budget carefully. According to All Business. (2010), the cost of providing health care services, patients way of payment for these services and the environment in which those patients reside and receive those services are important elements that affect the care this is or may not be
The major objectives of healthcare financial management include: generating income (which is the most important) because it is the financial status of the organization. It is important to ensure that revenues are exceeding expenses. After assets are invested in, they are meant to be used. They must respond to regulations and be accredited to qualify for loans, reimbursements, etc. Facilitate relationships with third-party payers because they are the ones helping with the bills. The health organizations must also influence method and amount of payment to avoid overpaying, when faced with capitated prices or prospective payments. Monitoring physicians is important because they are at the forefront of everything, so management must make sure that physicians’ orders are consistent with patient needs. Lastly, protecting tax status involves for-profit organizations trying to reduce tax liabilities, while not-for-profit organizations try to protect their tax-exempt
Understanding the financial analysis of healthcare organizations is strategic to the organization by understanding their stand on the amount of revenue they gain, healthcare assets, and their financial goals. This paper will provide a comparison on the performance of financial analysis of several California Healthcare Organizations such as; Scripps Health, Palomar Health, Sharp Healthcare, and Tri-City Healthcare. The four healthcare organizations will be illustrated with an overview about what the organizations have been doing financially , where they have been growing financially, and what have they accomplished over the past year from examining their financial statement. As the nation’s healthcare model continues to evolve,
The health care organization is governmental organization in UAE it policy to provide comprehensive health care for all citizens and residents. This can be achieved through its preventive and curative health services through a network at all levels, which includes primary health care, secondary health care and clinical care. Mission of governmental organization To Enhance the health of individuals and societies in UAE through the provision of comprehensive and excellent health services, in a healthy and sustainable environment, through implementing policies, legislations, programs and elective partnerships locally and internationally. Drug control department is under management of medical district, which employing about 96 people. Drug control department Is concerned with the inspection of Private (Community) Pharmacies, Drug Stores, make sure that they are running according to the related regulations, licensing procedure: Renewing and licensing new licenses for Pharmacists, assistants and pharmaceutical establishments. Please refer to appendix A which presents Structure of organization
Financial Management is a critical aspect of any business in order to achieve a sustainable and efficient cash flow. It is essential in maintaining the link between a business’s future financial goals (profit maximization) and the resources that it has in order to achieve its objectives. Businesses demand certain common goals that increase a bussiness's all around achievement, Some of which involve; growth amongst assests, An increase in efficiency in all areas of the business whether it be management or not. And the ability to meet short term and long term debts. Finacial management undertakes the responsibility to implement and acheive these goals for the business using a range of strategies shaped to meet the needs of the business and
A financial manager is responsible for the financial health of the bank. The job description of a financial manager is that you should be able to stimulate various financial scenarios through financial modeling and data to determine the best course of action. Reviewing financial reports, monitoring accounts, and preparing activity reports and financial forecast. Investigate ways to improve profitability, and analyze markets for business opportunities such as expansion, mergers, and top executives. Planning and directing the activities of workers in branches or