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Business Finance Healthcare Finance: An Introduction to Accounting and Financial Management

The way by which the role of finance has changed in health care organizations. Introduction: A health care facility generally refers to a hospital or a clinic that provides health care needs to the people. The managers of a health care facility need to be very active and careful in every step they take. They are in charge of the everyday activity that takes place in the facility. In addition, they are responsible in sharing information to the public about the health care unit and are entitled to clear the doubts of third parties. The following is the role of finance in health care organizations Preparation of budgets and planning Making financial decisions Preparation of financial statements Preparation of financial reports Managing current accounts and revenue of the organization Management of financial risks and contracts related to finance The role of finance has changed in the following ways: In the present trend, the health care organizations are found to redesign the role finance department. The redesigning process is based on the changes undergone by the industry. Though many changes take place, the billing and collections play a vital role in the department. The following are some of the places in which the role of finance is found to change: Changes in the effort of cost containment Involvement in decision making process of joint ventures Participation of finance department in integrated delivery systems Involvement in contract negotiations between third parties The finance department must help the organization in forecasting the future incomes and expenditures rather than recording the past financial functions Hence, finance department plays an important role in health service organizations.

The way by which the role of finance has changed in health care organizations. Introduction: A health care facility generally refers to a hospital or a clinic that provides health care needs to the people. The managers of a health care facility need to be very active and careful in every step they take. They are in charge of the everyday activity that takes place in the facility. In addition, they are responsible in sharing information to the public about the health care unit and are entitled to clear the doubts of third parties. The following is the role of finance in health care organizations Preparation of budgets and planning Making financial decisions Preparation of financial statements Preparation of financial reports Managing current accounts and revenue of the organization Management of financial risks and contracts related to finance The role of finance has changed in the following ways: In the present trend, the health care organizations are found to redesign the role finance department. The redesigning process is based on the changes undergone by the industry. Though many changes take place, the billing and collections play a vital role in the department. The following are some of the places in which the role of finance is found to change: Changes in the effort of cost containment Involvement in decision making process of joint ventures Participation of finance department in integrated delivery systems Involvement in contract negotiations between third parties The finance department must help the organization in forecasting the future incomes and expenditures rather than recording the past financial functions Hence, finance department plays an important role in health service organizations.

Solution Summary: The author explains how the role of finance has changed in health care organizations.

Healthcare Finance: An Introduction to Accounting and Financial Management

Healthcare Finance: An Introduction to Accounting and Financial Management

6th Edition

ISBN: 9781567937411

Author: Louis C. Gapenski, Kristin L. Reiter

Publisher: Health Administration Press

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Chapter 1, Problem 4.1STQ

Chapter 1, Problem 4.3STQ

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Healthcare Finance: An Introduction to Accounting and Financial Management

Ch. 1.1 - Prob. 1.1STQ Ch. 1.1 - Prob. 1.2STQ Ch. 1.1 - Prob. 1.3STQ Ch. 1.1 - Prob. 1.4STQ Ch. 1 - Prob. 1.1STQ Ch. 1 - Prob. 1.2STQ Ch. 1 - Prob. 1.3STQ Ch. 1 - Prob. 1.4STQ Ch. 1 - Prob. 2.1STQ Ch. 1 - Prob. 2.2STQ

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