Reimbursement and Profitability Essay- Financial Manager in a Health Care Organization

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Grand Canyon University *

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240

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Finance

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Jan 9, 2024

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Reimbursement and Profitability Essay: Financial Manager in a Health Care Organization Brandi Munday College of Science, Grand Canyon University HCA-240 Professor Joe Anderson December 03, 2023 1
Reimbursement and Profitability Essay: Financial Manager Roles and Responsibilities A financial manager’s job is to perform data analysis and advise senior managers on profit-maximizing ideas, (U.S. Bureau of Labor Statistics). Another responsibility that financial managers must undertake is the financial health of an organization. They must be able to create financial reports for the company, and direct investment activities, and they must determine the long-term financial goals of the company in order to plan for it. An accountant’s roles is budgeting and forecasting the financial status of the company, tax planning and compliance, and internal controls and risk management. The difference between an accountant and a finance manager is that an accountant must focus on the day-to-day finances whereas the finance manager will be in charge of determining the long-term financial goals. Reimbursement and Profitability Reimbursement in the medical field is linked to charges that are received from charge- paying patients. Reimbursement is essential in the medical field because it ensures that doctors and other providers are being paid for the services that they are providing. Cost shifting will occur when a hospital charges an insured individual more than an uninsured individual for the same service which then those who have insurance cover the financial loss when they provide services for somebody uninsured, (CHRON). Importance of Profits Government regulations, accounting standards, and corporation rules are important to remaining profitable because they set the standards for practices and ensure patients are receiving quality care and affordable healthcare. The government also is in charge of determining the costs of services which protects existing firms from unfair practices. The regulations set not only protect patients, but it also protect employees through fair employment and standards.
Without government regulations, each practice would be able to set their own standards based on whatever they felt was right. The providers would also be able to change the prices of services provided which could be unjust compared to others. Providers could charge those who have insurance more than those without insurance just because they felt like it which could cause unfairness. Healthcare should be fair and provide the same care to all individuals regardless of their financial status which is why the government regulates this. Conclusion The goals of a financial manager consist of performing data analysis and protecting the long-term well-being of a company. They are able to manage companies' long term goals through this. Reimbursement is critical in healthcare because it allows providers to be paid for their work and without government regulations, there would be no standards for practices and individuals would not be treated fairly.
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References Cleverley, W. O., & Cleverley, J. O. (2017). Essentials of health care finance (8th ed.). Jones & Bartlett Learning. Norman, L. (2017, November 21). What is cost shifting? . Small Business - Chron.com. https://smallbusiness.chron.com/cost-shifting-23849.html U.S. Bureau of Labor Statistics. (2023, September 6). Financial managers : Occupational outlook handbook . U.S. Bureau of Labor Statistics. https://www.bls.gov/ooh/management/financial-managers.htm#:~:text=Financial %20managers%20perform%20data%20analysis,financial%20goals%20of%20their %20organization.