Skip to main content

Business Finance EBK HEALTHCARE FINANCE: AN INTRODUCTIO

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.

EBK HEALTHCARE FINANCE: AN INTRODUCTIO

EBK HEALTHCARE FINANCE: AN INTRODUCTIO

6th Edition

ISBN: 9781567938111

Author: Gapenski

Publisher: VST

See similar textbooks

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

Blurred answer

Chapter 1, Problem 4.1STQ

Chapter 1, Problem 4.3STQ

Students have asked these similar questions

How does a small buisness owners role change over time?

How suboptimization can occur?

What is this question answer?

Chapter 1 Solutions

EBK HEALTHCARE FINANCE: AN INTRODUCTIO

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

Knowledge Booster

Background pattern image

Similar questions

SEE MORE QUESTIONS

Recommended textbooks for you

Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Business/Professional Ethics Directors/Executives...
Accounting
ISBN:9781337485913
Author:BROOKS
Publisher:Cengage
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Corporate Fin Focused Approach
Finance
ISBN:9781285660516
Author:EHRHARDT
Publisher:Cengage
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning

Text book image

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:Cengage Learning

Text book image

Business/Professional Ethics Directors/Executives...

Accounting

ISBN:9781337485913

Author:BROOKS

Publisher:Cengage

Text book image

Managerial Accounting: The Cornerstone of Busines...

Accounting

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Cengage Learning

Text book image

Corporate Fin Focused Approach

Finance

ISBN:9781285660516

Author:EHRHARDT

Publisher:Cengage

Text book image

Accounting Information Systems

Accounting

ISBN:9781337619202

Author:Hall, James A.

Publisher:Cengage Learning,

Text book image

Cornerstones of Financial Accounting

Accounting

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Cengage Learning

SEE MORE TEXTBOOKS