Health Care Financial Management: Reporting Practices and Ethics

1372 Words6 Pages
Health Care Financial Management: Reporting Practices and Ethics Marvin Dumlao HCS/405 April 6, 2010 Lisa Sanders Health Care Financial Management: Reporting Practices and Ethics
Whether operating as for-profit or non-profit, organizations must pay close attention to accounting practices and adhere to sound financial management procedures to remain solvent. This applies to health care organizations as well. With the costs of health care continuing to rise, it is not just consumers who have to manage budgets carefully. According to Hyman (2010) the cost of providing those services, the way patients pay for these services and the
…show more content…
Relevance When organizations present financial statements for review, the information contained in the statements should be appropriate and clear enough as to enable evaluators or auditors of the information to make accurate estimations of the presenting organization’s financial status.
Reliability
Information contained in financial statements should be verifiable by an independent auditor. The information should be sufficiently accurate enough that any financial expert can take the information and report identical conclusions. Reliability in GAAP means the financial statements describe an accurate snap shot of an organization’s solvency.

Comparability * This accounting principle ensures comparability of any organization’s financial statements to any other organization in the same industry. Absence of this principle makes comparisons to other companies in the same industry difficult. Ethics in Health Care Finance Each day, patients seek medical care from professionals whom they trust to provide this care with competence, honesty, and integrity. Stakeholders of the organizations that provide these services expect the same levels of integrity from the officers of these organizations when it comes to financial reporting. Records must be accurate

More about Health Care Financial Management: Reporting Practices and Ethics

Get Access