Health South (B) Case Study

921 WordsJan 8, 20114 Pages
Case Study HealthSouth (B) Executive Summary HealthSouth is in need of creating a professional image and adopting ethical principles while addressing the following problems: unhappy coworkers and managers, improper business practices including creating falsified statements and unlicensed people performing physical therapy, and unethical behavior involving corporate leaders and the CEO. There are signs of lack of leadership and purpose within this company and unethical procedures that need to be addressed in a timely manner. We have provided within this case a framework to turn this downward cycle around and make HealthSouth a profitable and ethical organization. First, we will separate accounting duties which will help people remain…show more content…
A deep combing of the internal operations would have to be performed in order to make recommendations on best practices for internal financial control. Recommendations The firm should separate the duties of accounting clerks. Duties would be divided for income, expense, PPE (property plant and equipment), liabilities, and cash account. Each person would only prepare one side of each entry and all entries signed off by department manager, having the third person sign off helps keep you honest. Posting expenses to asset account overstates assets, decreases expense and increases profits. Equipment should be purchased through a closed bid system. The firm would offer preapproved companies to bid for specified equipment. Employee’s personal references, work history, education and licenses would be checked and verified separately by Human Resources. All licenses would be display in appropriate work areas. All employees will receive continual job training and required to stay up to date on technology. Billing will be verified to employee time card and scheduling of treatment rooms and equipment. Board members will consist of members with a variety background. An election committee will be formed to interview and make recommendation for possible members. No member will be related to another member and only two members from the same field. Having broad
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