A recent article in the Journal of Jama states cost
A recent article in the Journal of Jama states cost
EHC organization has managed to maintain profits in order to remain in operation, because of their good reputation. Beside the organization’s great patient care, certain departments have invested in making poor financial decisions, which are now becoming a hindrance to the organizations profits. In the recent reviews of the organization financial data, the center has given huge discounts to managed care organizations, such as Medicaid/Medicare. When an organization deals with negotiating a set or contracted price for services, the reimbursements for these services are more than likely to be below the organization’s budget standards. The contracted fees set for the reimbursement of the insurance rate where not based on the past medical cost, this could stop the organization from receiving profitable financial growth. The organization’s nursing staff has been compromised, due to the organization paying outside contracted wages, to the agencies that supplied the organization with these particular staff members. More than half of the organization’s liablities have increased, the accounts payables are the main reason for this increase. The EHC will need to replace their old outdated equipment with the latest equipment…
It is essential in any business, not just health care to understand how finances directly affect the growth, success and longevity of the business and all its parts. To truly understand how finance affects business it is important to gain knowledge and understanding of how the business generate revenue ,the cash flow of money that comes into the business, how bills are paid and money leaves the business and how investments are made in the business that can directly and indirectly impact the financial growth of the organization. In health care organizations there are different factors that come into play in the financial department…
Where many other industries have separate financial departments which performs all financial operations, effective financial management in health care at some point becomes the role of many health care managers who must be able to account for the financial management of their units (Finkler, 2006). The finance position in health care involves providing financial analyses to improve decisions that affect the wealth of the organization (Finkler,…
In the United States, organizations are financially accessible because of many years of financing cuts, reductions in Medicare payments imposed by Balanced Act of 1997, decreases in Medicaid reimbursements, and the lowering stresses of controlled care (University of Phoenix, 2013). Organizations and other health care facilities should organize cautiously when the situation comes to financing choices, service agreements, type of equipment, physician favorites, and locating to assist in making the best decisions. According to several published and quoted surveys, organizations are postponing or eliminating equipment investments in short-term (Barlow, 2009).…
The next goal is that budget ought to recuperate many of its operating expense. As in many occasion, organizations have mandatory expenditures however, when expenditures are not relevant in the function of the organization, these cost can be saved. In the health care industry it is important to minimize any additional cost by placing expenses on vital services in the facility.…
This area covers upper management, building alliances, financial policies and budgeting. For the upper-level management, it is essential to have a CEO-Chief Executive Officer or a Director according to the need of the facility. "Health Center maintains a fully staffed health center management team as appropriate for the size and needs of the center" (HRSA, p. 3). Having a collaborative networking force with other facilities will help strengthen the organization. Another part is why accounting get involved in internal control. "Health Center assures an annual independent financial audit is performed in accordance with Federal audit requirements" (HRSA, p. 3). Financial policies should be in place according to how big and intricate the finances are. To make sure that the appropriate grants are obtained will be based from the revenue of the…
This paper discusses the elements of financial management that is important to the healthcare organizations, generally accepted accounting principles, and a summary of the articles related to healthcare financial management.…
Financial management is an important aspect to health care financial planning. There are many financial decisions that are made every day and depending on the accounting records and the different transactions that are occurring. Finance management is something that health care organizations need to pay close attention to. The number one priority of a health care organization is to care for patients but, there still needs to be a profit so that the organization can keep caring for patients. For an organization to satisfy patients and staff at the same time finance management needs to be planned out. An organization needs to make sure that the assets, costs, and claims are monitored and never overlooked. Some of the decisions made will be in accordance to the organizations financial objectives but, normally it is in accordance to the generally accepted accounting principles.…
The purpose of this research is to inform the healthcare industry how lowering costs in health care will impact healthcare organizations. This…
Four elements of finance management, is the key to good financial management is to be well organized and have good finical discipline. Health care is a business and having a good concept of financial management will help those businesses run smoothly. “The healthcare industry is a service industry; its essential business is the delivery of healthcare services.”(Refaat, 2014) Having a good understanding of the elements of financial management can help to explain the financial management of that service industry.…
As a manager, his day-to-day duties are accountable for the productivity, diversity, public scrutiny, confidentiality, customer expectation, safety, customer demand and participation to his employees. Considering that every health care manager’s responsibilities and duties may varies in every health care organization. As a manager he must understand the in and out of the business, and the involvement of his employees, and other stakeholders that directly or indirectly impact its success. Stakeholders refer to patients, suppliers, competitors and institutions that are affected in one way or another by organization’s performance. Furthermore, patient is the number one who utilizes the goods and services produced by health care organizations.…
The four major functions in managing health care accurately are planning, organizing, leading, and controlling. Managing health care is important especially for employees and your place of business (Lombardi).These factors ensure quality service without any rest stops or burdens being an issue. Within the health care field, employees usually have trouble with communicating with the higher authority due to issues and lack of time. Planning is important to ensure that goals are being set and that the future looks brighter than what it already is. Planning comes along with meeting needs and focusing on the employees well being. Organizing is ensuring that all things are done and made on time (Hagemann). Organizing comes along with ensuring that there is no time to make residents/patients wait for care. Leading is one of the most important parts of management because this can leave a reputation that either looks good or bad. This is the time where employees should offer suggestions and speak up on any problems that they may have on the job. This is also the time to set goals for employees to meet by a certain period. This gives the manager time enough to challenge those who work under him so that he/ she can get a hint of what assignments should be given to what employees based off how they perform. Controlling is very important because this way everyone is following guidelines and rules along with working as a team rather than individual performance. Employees should be able to call on one another to help each other out so that no one feels left behind or less than. (Hedlund) The most important role for a health care manager and leader throughout a diversified health industry is to maintain balance meaning always be sure that everyone is comfortable as well as equality towards each individual. The manger should have different innovative ways that will cover a diversified health care industry. I will love to gain more…
Based on your review of the course materials for Week One, review your current health care organization or an organization with which you are familiar. Then, in the table below, provide a list of systems used, the scope of each system, its components and uses, and how the system supports the health care organization’s strategies.…
Health care providers are feeling the pressure as the industry moves to an accountable care model. With reimbursement contingent on patient satisfaction and safety, cost containment is more important than ever (Aberdeen Group, 2012). Providers are leaning on HR management to ensure their workforce is prepared to meet the challenges. Identifying and promoting talent within the organization, formal succession planning, and leadership programs can give organizations the advantage in an ever-changing industry (Aberdeen Group, 2012).…
Services lie at the hub of economic activity in the United States. Service jobs account for almost 80 percent of total U.S. employment. As such, we say that the U.S. has a service economy. Within this service economy, the term service has several meanings when paired with other words. For example, a service firm is defined as one that derives more than 50 percent of its sales from providing services. RCA's service revenues now exceed its revenues from electronic manufacturing. A service package is a bundle of explicit and implicit benefits performed with a supporting facility and using facilitated goods. When you eat at a fast food restaurant (supporting facility), you may purchase a hamburger (facilitating good) that someone else cooked for you (service). The service concept is the perception and expectations of the service itself in the minds of the customers, employers, shareholders, and lenders. The service system is the equipment, layout, and procedures used to provide the service and maintain quality and delivery standards. The service revolution relates to the shift in the United States to a service economy and the proliferation of service automation.…