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