Reporting Practices And Ethics Paper
Reporting Practices and Ethics Paper
Theresa Kamara
HCS/405 Health Care Financial Accounting
July 31, 2015
Mark Williams
Properly managing the financial accounts of healthcare organization is the key to the organization success. Financial management is a crucial part of healthcare and must not be taken lightly. Most healthcare organizations used financial records as a part of the management process to determine the organization next move. Making good financial decisions is in the best interest of the organization, but this where the questions arises, are the financial decisions made by some organization financial experts ethically acceptable if justifiable or are those decisions unethical? If so are they in interest of the financial expert? There are four elements of financial management that all healthcare organizations must followed. They include planning, controlling, organizing and directing and decision making. Planning is the initial stage of the organization preparation towards its goals. During the planning phase, the management team develops strategies, objectives and assembles resources that will be used to achieve set goals. With controlling, the organization’s financial manager makes sure the every department is using the allocated revenue to achieve the set goals. The financial manager gather the available resources, creates teams and assigns them with various tasks to perform in order to achieve the organization goal during the organizing and directing phase. In decision making, the financial manager along with the rest of the management team makes strategic plans with expected outcomes that are profitable for the organization. The financial management process must be done based on the generally accepted accounting principles (GAAP) set by the Financial Accounting Standards Board (FASB) that all organization must follow when creating their financial statements. “Generally Accepted Accounting Principles (GAAP) refers to a widely
Theresa Kamara
HCS/405 Health Care Financial Accounting
July 31, 2015
Mark Williams
Properly managing the financial accounts of healthcare organization is the key to the organization success. Financial management is a crucial part of healthcare and must not be taken lightly. Most healthcare organizations used financial records as a part of the management process to determine the organization next move. Making good financial decisions is in the best interest of the organization, but this where the questions arises, are the financial decisions made by some organization financial experts ethically acceptable if justifiable or are those decisions unethical? If so are they in interest of the financial expert? There are four elements of financial management that all healthcare organizations must followed. They include planning, controlling, organizing and directing and decision making. Planning is the initial stage of the organization preparation towards its goals. During the planning phase, the management team develops strategies, objectives and assembles resources that will be used to achieve set goals. With controlling, the organization’s financial manager makes sure the every department is using the allocated revenue to achieve the set goals. The financial manager gather the available resources, creates teams and assigns them with various tasks to perform in order to achieve the organization goal during the organizing and directing phase. In decision making, the financial manager along with the rest of the management team makes strategic plans with expected outcomes that are profitable for the organization. The financial management process must be done based on the generally accepted accounting principles (GAAP) set by the Financial Accounting Standards Board (FASB) that all organization must follow when creating their financial statements. “Generally Accepted Accounting Principles (GAAP) refers to a widely
References: Generally Accepted Accounting Principles (GAAP). Retrieved August 2, 2015 from http//:www.readyratio.com/generally_accepted_accounting_principles_gaap. Shinkman, R. (2014, February 6). Former hospital CEO, two vendors sent to prison for fraud. Retrieved August 3, 2015 from http//:www.fiercehealthfinance.com.