Healthcare Finance: Basic Tools for Nonfinancial Managers

Most of us have to make decisions from the time we wake up until the time we go to bed at night. Answering questions like what should I eat for breakfast, can I make that yellow light and should I go to the gym or go out for pizza all require us to make a choice or a decision (Robbins, S.P., Judge, T.A., 2009). At work I am challenged with collaborating with managers and other leaders to make decisions based on scenarios and events that occur in the hospital.

In controlling the financial manager makes sure that each department of the health agency is following the plans that have been put together. One way to do this is to study current records and compare them with reports from an earlier day and time. By comparing it’s often shows where you 're going to see the areas that need attention. The manager uses feedback to discover the areas that are not as effective. The purpose of controlling is to ensure that the original plans are being followed.

Decision-making in the workforce is a process of responsibilities used by upper management to implement, enforce rules, regulations, and maintain a successful environment. Decision-making implemented more effectively by making a plan, thinking it through, accepting more than one opinion and determining what is best. However, decision-making often utilized more effectively by opening doors of opportunities for a suggestion, question, discussion, and feedback. Although, more involvement helps improve understanding, utilize behavior skills and present opportunities for better communication. Everyday life consists of decision-making, the right decision may not always be applied, but ensure room for improvement and opportunity. Individuals approached decision-making in many different ways. As stated by (Jones, Graham, & Bateman, 2006) decision making is a procedure used to recognize a problem, weigh the alternatives and evaluate a solution in which, certain situations will require different approaches to become effective.

People should make decisions every day, some of those decisions are easy to make, while others are quite difficult to implement. An appropriately combined and organized decision-making process will help to control this issue and bring a positive outcome for those involved. The decision-making process may become challenging for people due to “the lack of structure and entail risk, uncertainly and conflict” (Bateman and Snell, 2012, p. 86). That is why people trying to make important personal or professional decisions should have an appropriate model to follow in order to avoid these challenges. Bateman and Snell identified six steps or stages of decision-making process

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.

The Internal control system plays an integral role in an organization’s success, whether for-profit or not-for-profit, and regardless of size. As health care organizations becoming more

This course is designed as an introduction to the terminology, processes, functions, and financial reports commonly encountered in health care operations. This course introduces the concepts of basic managerial financial functions, such as budgeting, reimbursement methods, and the responsibilities of health care financial

Recent changes in our health care reform laws are changing the manner in which health care organizations are reporting finances. “Overall, health care-related items are going to become reportable within one or more financial categories. And that means companies will need to have controls and policies in place around that health care data. Whether companies store it in a human resources application or in a financials package, they need to consolidate that information and put the controls in place to ensure its integrity”. (Capobianco, 2010) Financial reporting is already a well documented in most organizations, however these new reform laws are making the reporting not only a priority but also a necessity and accuracy a must. “It may be cheaper to pay the fines; however, that may not be the best business position to take”. (Capobianco, 2010)

What distinguished very competitive markets (those with below average profit margins) from less competitive markets (those with average profit margins)? Healthcare managers must understand the structure of private and social insurance programs because much of their organizations’ revenues will be shaped by these programs. Managers must be aware that consumers ultimately pay for healthcare products, a key fact obscured by the complex structure of the U.S. healthcare financing system. Substantial numbers of healthcare mangers serve firms that seek to maximize profits. For an example, for-profit hospitals, most insurance companies, and a broad range of other organizations explicitly seek maximum profits. Many not-for profit healthcare organization

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 following pages present a brief analysis of sample data from one healthcare organization. Accompanying this written report are spreadsheets of the company's financial data its balance sheet and its statement of revenue and expenses that provide not only the figures from the audited reports of the hospital examined, but also show the change from year to year on each item as both a dollar amount and a percentage. Changes of more than five percent are considered worthy of discussion, and as these documents show much

Decision making is a key ingredient in order for a business to grow. As a Manager, it is important to ensure the best decision has been made for the employees and the company. While working with THI Nursing agency as a human resource manager, I have found that it is important to understand all employees’ strengths as well as their weaknesses. Making the discussion to hire new nurses can often become difficult even when they possess many positive qualities. Being well disciplined and showing consistency are essential process for making decision making with the health care profession. Balance is definitely the key when one is showing consistency. I usually to spend time with

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

Financial statements have several key components and specific criteria into them to relay the detailed information for auditors and management. A deeper look into financial statements and the many concepts surrounding them are needed to explain in more detail. It’s also important to recognize the Auditor’s opinion letter, balance sheet, operating statement, statement of changes in net assets, and statement of cash flows and footnotes of their involvement in the process. Relevant accounting articles are a useful supplement to financial statements and how they enhance concepts in the financial statement. The meaningful uses of financial statements for health care organizations are the epitome of current and future success of financial health.