Why Is A Financial System Important?

The HCS 405 week 1 financial terms worksheet throws light on some of the most basic concepts of the healthcare business. Understanding health care financial terms is a prerequisite for both academic and professional success. The health care business helps the nation by providing the building blocks that the citizens need to live a successful and healthy life. The worksheet is intended to ensure that the students understand some of the basic terms used in the business world of the health care industry. The purpose of HCS 405 individual and team assignments is to make the students aware about the numerous strategies employed in the financial and other departments of a

The role of finance in Health Care Systems, Inc. as a regional not-for-profit hospital relates to both the accounting and financial management aspects of the business. Facets of both accounting and financial management are intertwined with maximizing productivity by way of managing and analyzing financial operations to ensure resources are being utilized properly (Gapensiki, 2013). The divulgence of financial reports to managers and investors will aid in the development of plans and budgets for future growth, assess acceptable levels of financial risk, manage contracts appropriately and make decisions related to capital investments allowing the organization to expand service offerings thereby demonstrating greater value in the community. Operating as a not-for-profit entity requires that the hospital operate exclusively in the interest of the public for a charitable purpose. Through understanding who the primary third party payers

While there is still much to learn about financial operation of a health organization, I feel that I have better understand of most of the fundamental principles that apply to a broad spectrum of businesses. Upon reflection this understanding of financial principles also reinforces the need to have a fundamental base of knowledge, but simultaneously services to illustrate the vast body of information that there still is to learn. The allied health community assignments were useful in a general sense, in that they allowed a student to apply some of the concepts that they have learned. This “hands on” approach was helpful because it added context to the lectures and readings. As an exercising in doing the work of an administrator, the allied health community exercises required the student to research additional information about the topics assigned and this allowed me to further mentally cement the concepts.

Ineffective practices in creating and monitoring a budget include failure of management to integrate the operating budget with other planning efforts (Academic Writing Tips, 2011). Organizational leaders should ensure that the long term and intermediate goals correlate with the operating budget. Failure to align the operating budget with various assumptions such as size, scope, and nature of future operations can pose a problem (Academic Writing Tips, 2011). According to Finkler and Ward (2006), upper management and financial officers usually create the operating budget omitting frontline and unit managers. This process can lead to failure in the financial management practices

This course is designed as an introduction to the terminology, processes, functions, and financial reports commonly encountered in health care operations. This course introduces the concepts of basic managerial financial functions, such as budgeting, reimbursement methods, and the responsibilities of health care financial

Controlling is ensuring the validity and accuracy of all financial information within the firm. Controlling will become very profound as the industry overall undergoes fundamental change in regards to operations. Legislation imposed by the federal government regulates, to a certain extent, how health care organizations operate. As such, management must be able to control costs and assess the validity of the financially information presented to them. If the organization fails to do so, the results could be devastating. First, loses will occur due to the excessive lack of control. The organization may be forced to lower spending in some areas of compensate for the aggressive spending in others. In addition, the reputation of the firm could be harmed. Patients and other vendors may be unlikely do business with the firm for fear of the company's lack of financial security. Therefore, in order to ensure the continuity of the business, the firm must have adequate methods by which to check the validity of its financial information. Third party audits, independent audits, check and balances and management oversight all will help ensure that the overall financial position of the firm is sound and credible.

A strong operating and capital budget should align with the strategic goals of Creekside Community Hospital, as well as ensure operational efficiencies and financial longevity. Planning capital purchases continually and for future years will allow Creekside to be competitive, which is a crucial factor in capital budgeting (Gapenski & Reiter, 2016). Vianueva (2011) suggests an inadequate capital budget process leads to a key problem area for hospitals. Cost allocation is a vital component of the capital budget process. Costs must be allocated to the appropriate departments or areas where they are incurred, as well as where revenues are generated. With Creekside Community Hospital exhibiting higher inpatient costs than outpatient costs, the hospital leadership should ensure accuracy so that managers have the information necessary to make sound, financial decisions currently and in the future related to staff support, equipment and supply purchase to name a few.

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.

Before beginning the project, Sutter Health identified several areas in which the project needed to focus. There are three identified problems that would result in the staff of Sutter Health being unable to workefficiently. First, the patient financial services Staff or PFS could not access real-time information on key financial and operational indicators such as A/R days and cash collections. To manage this problem they needed to be able to track progress or make important decisions, managers and staff had to wait until the end of the month to do so. Next issue that they acknowledged was the hospital’s accounting system did not allow managers to isolate and analyze select data or generate reports on demand to the level of detail required. Fixing this resulted in the region having to rely on specially trained programmers to develop the reports, which would be costly and cause delays in identifying and correcting the problems. The third problem identified was the central business office (CBO) staff also suffered from the lack of

Manage a health care organization is not an easy task, the compromise with the community to provide an excellent service and the responsibility of keeping the profitability and viability of the organization makes health care management a complex and every day challenging profession. It require effective practices to avoid the failure of the business.

In the health care world finances play a significant role in the quality of care rendered to the consumer. There is no health care facility that is the same when it comes to their financial management because it is needed both internally and externally to ensure that it runs properly. Today’s health care field consist of either not-for-profit organizations, for-profit organizations and governmental, (Gapenski, 2008).

There are many ways to measure financial performance if we were to become part of an ACO. These metrics would allow us to quickly recognize the impact on our organization from becoming an ACO. Largely, the success of an ACO is measured by value metrics. In other words, are we providing quality health care that is also cost-effective? Financial performance is also measured by whether or not performance payments are received from the payer in response to our ability to control group spending below our benchmark spending

This case study will focus on the HCAPHS scoring time frame between September, 2014 and September, 2015, and occurred in a community based, not-for profit, 451 licensed bed hospital. The particular unit in this study is located on the ninth floor of the hospital’s pavilion and is a 60 bed orthopedic unit. Dawn, the manager of this unit was new to the facility at the time. Her first managerial task of planning, was to systematically determine the goals, objectives, policies, procedures, budget, and any other information that she would need to achieve the hospitals goals (Dunn, 2010). Dawn then set-up a meeting with her Senior Director to establish expectations.

Understanding the financial analysis of healthcare organizations is strategic to the organization by understanding their stand on the amount of revenue they gain, healthcare assets, and their financial goals. This paper will provide a comparison on the performance of financial analysis of several California Healthcare Organizations such as; Scripps Health, Palomar Health, Sharp Healthcare, and Tri-City Healthcare. The four healthcare organizations will be illustrated with an overview about what the organizations have been doing financially , where they have been growing financially, and what have they accomplished over the past year from examining their financial statement. As the nation’s healthcare model continues to evolve,

Though they are not entirely comprehensive tools, a great deal can be learned about a hospital or other healthcare organization for-profit or not-for-profit from an examination of their annual financial documents (Finkler & Ward, 2006). The balance sheet and statement of revenue and expense can both yield valuable clues even in the absence of other evidence about changes that might be occurring in the organization, a definition of the type and degree of certain problems that it might be facing, and potential opportunities for improvement in performance that might exist (Finkler & Ward, 2006). Comparing two or more years' worth of financial information yields even more valuable insights, tracking movement in the hospital or other organization's ability to finance its activities and thus continue providing services at the same level, quantity, and scope as current operation.