Essay about Financial Management of Health Care Organizations

1320 Words Nov 5th, 2012 6 Pages
Running head: FINANCIAL MANAGEMENT OF HEALTH CARE ORGANIZATIONS



Financial management of health care organizations
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Introduction
Healthcare managers participate in various important roles that allow them to form and maintain flourishing organizations. Managers ought to be aware of the decisive elements of management and the generally accepted accounting principles. At the same time, they must realize, stick to, and put into effect the general financial ethical standards. Successful management of finances of healthcare is one of countless tests that mug the organization. Revenues and expenses of the organization are essential because they establish the external and internal finances of the company. The
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Confidentiality
While working with clients, financial professionals have the right of entry to an enormous deal of personal information. Ethical standards necessitate that financial professionals have to keep the information confidential except for when ordered to disclose it by a court of law.
Four elements of financial management
Elements of financial management include planning, controlling, organizing and directing, and decision making.
Planning
This is the first pace in financial. It is the duty of financial manager to primarily recognize the goals of the company. The subsequently responsibility is to decide on the suitable steps that have to be applied achieve the goals of the company (Baker and Baker, 2007, p. 6).
Controlling
Controlling is the second pace in financial management. At this stage, the financial manager makes sure that every division of the organization tags on the decided plans. In controlling stage, managers will have to study the existing reports and compare them with the previous reports to help them comprehend and establish the division of the organization that is a need of the most attention (Baker and Baker, 2007, p. 6).
Organizing and directing
During organization, it is the task of the financial manager to choose on how to use the resources of the organization efficiently. Resources like funds or assets…