The For The Patient Protection And Affordable Care Act

1187 WordsJan 28, 20165 Pages
Financial Statement Analysis The goal of the Patient Protection and Affordable Care Act in 2010 was to expand the assess to care for all American citizens and to reduce the cost of health care in the United States. Therefore, many executives of Health Care Organizations (HCOs) confront with key issues of allocating scarce resources to deliver the care without compromising on qualities and increasing on expenditures (KPMG Healthcare & Pharmaceutical Institute, 2011). With unlicensed supportive personnel and nurses composing the largest percentage of the workforce at any HCOs, it is crucial that advance practice nurses (APNs) be involved in the achievement of financial goals (Goetz, Janney, & Ramsey, 2011). Therefore, the purpose of this…show more content…
In order to accomplish this, APNs must form a partnership with the financial team to ensure that their budget projections and goals are in alignment with the financial department and the strategic plans of the HCOs (Goetz, 2011). The role of the APNs in the financial well-being of the HCOs is to take ownership in the planning, controlling, and making management decisions of the HCOs. Furthermore, APNs need to be directly involved in preparing, monitoring as well as carrying out the budget process and taking on the responsibilities of financial calculation to achieve the goals set by the HCOs efficiently (Finkler et al., 2013). After all, the financial well-being of the HCOs is essential because the HCOs must be sustainable financially to reach its goals related to providing care. The Significance of Different Financial Statements Financial statements depict a picture of the financial well-being of a business and are used for financial performance analysis (Nelson, 1942; Stichler, 2008). First, the statement of financial position consists the assets that are owned by the HCO, the liabilities that the HCO has to the outsiders, and a portion of the HCO’s assets that belong to its owners (Finkler et al., 2013). It is a balance sheet indicating what the HCO has and what the HCO owes at a specific
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