¶ … Healthcare Financial Statements emphasizes on how accountants belonging to a healthcare organization make use of the accounts rule to evaluate their organization's financial statements. This paper also outlines the troubles a company could be into if its manager has no knowledge of interpreting the financial statements. This paper also highlights the steps taken by managers who have no background of finance.
Healthcare Financial Statements
All organizations whether they are linked to business, education or healthcare make excessive use of Accounts and Financial Statements to keep a check on their finances. If financial statements are not maintained then a check on the company's profit or loss or simple money expenditure cannot be analyzed. Hence, it is extremely important for healthcare organizations to acquire professional accounting services. Personnel who are in charge of the accounting department need to establish what and how the procedures will be carried out. An organization that is concerned with people's healthcare depends greatly upon the record of its patients, which in turn form the basis of an organization's financial statement.
Creating a valid patient record is critical, as this is the foundation for all communication, both clinical and financial. Healthcare organizations deliver statements to the proper address, giving the patient an opportunity to pay as they intended or communicate with the facility about the specific details of the financially responsible party. Integrated communication and verification allows healthcare organizations to reduce bad debt, reduce days in accounts receivables, decrease collection agency referrals and reduce write-offs (Eclipsys Technologies Corporation,
Advanced Financial).
Even though a check on an organization's financial statement is kept by the accounts department, it is however important that the manager too keep a checkmark on all of them. It is important for a manager to have sufficient knowledge of how financial statements are prepared and how they can be interpreted. Managers or supervisors who have absolutely no financial background what so ever should make an effort to develop their ability to interpret critical financial information. Accountants formulate organization's financial statements with the help of accounting rules. They illustrate the necessity for capital and the type of the profits and profitability. Even healthcare organizations need to measure their profit and loss and make the best...
It may be most appropriate when there is a question of adding a new service or getting rid of a current service, but makes less sense for a department which is expected to continue in service. Incremental budgeting is a part of the rolling forecast system. If there is a sudden spike in revenue, for example, it may make sense to do an incremental budget to take into account the
Health Care Finance Financial analyst Eric Feigenbaum (2009) notes that while we like to think of hospitals in terms of compassion, patient care and dedication to altruistic aims, they are businesses concerned with revenues and expenses like any other business (Feigenbaum 2009, p.2). In today's hectic world of economic downturn and financial struggles felt from individuals of every demographic and social status, revenue and expense accounting are issues that must be
These revenue sources fluctuate significantly over the year, often requiring a rationing of budget for critical supplies. The clinic's budget is one that fluctuations on a quarterly basis depending on funding from the foundation donors and how quickly Medicare, Medicaid and insurance companies reimburse for treatments given. The facility has never had excess revenue and routinely operates unprofitably, continually seeking funding from the foundation to keep the staffing levels
1993). Within medical settings in particular, physicians and supervisors are often too over-burdened with their myriad formal responsibilities to take note of minor irregularities in protocols and procedures. Because coworkers are often in the best possible situation to notice inadequacies, it is important for all levels of employees to be equally involved in the overall CQI process. Optimal implementation of an effective CQI process also requires a culture of openness
Healthcare Finance In order to be successful in the present complex and frequently unfavorable business settings, a healthcare organization's strategic direction should be estimated, focused, and financially sustainable. Strategic business planning is an indispensable instrument to aid organizations focus strategic choices within the financial actualities of their environment. An efficient strategic business planning cycle includes making an evaluation, identification of business objectives, making strategies, performing an impact analysis and developing an
Health Care As human beings, our health and longevity have never been better. Many people today live to 100 years and beyond, and often in good and active health. One of the major reasons for this is better health care and more access to health care for more people. On the other hand, however, many people do not have access to the same health care services as others. Often, the main
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