University of Phoenix
Health Care Financial Accounting
Financial Management is one important part of health care financial planning. Many financial decisions are made on a day to day basis from all the accounting records and all the business transactions which occur. Some are the decisions made according to the organizations fiscal objectives although some are made on generally accepted accounting principles. This paper will include articles that address financial reporting practices and ethical standards in health care finance.
There are four elements of financial management.
Planning — Identify steps that must be taken to accomplish and organization’s objectives.
Controlling — Make sure that each area of the organization is following the plans that have been established.
Organizing and Directing — Decide how to use organizational resources to most effectively carry out established plans.
Decision-Making — Make choices among available alternatives.
The generally accepted accounting principles (GAAP) are considered as the framework of guidelines for the financial accounting and jurisdiction of all accounting standards. With these accounting standards the GAAP includes such things like standards, conventions and the rules the organization accountant follows when during a copy and summarizing all the transactions when doing the work on preparing the financial statements. All third parties that are involved with the reports must then rely on the information to be free from all bias and inconsistency without debate or not so GAAP standards are followed. All business states that, “generally accepted accounting principles are guidelines precisely, are a group objectives and conventions that have been set up permanently over time to set how financial statements are prepared and presented (FASAB, 2010). All organizations that do the dealing with any type of financial data must act in accordance with GAAP standards so that outside creditors can view their financial statements with any difficulty.
In all groups composed there is a corporate ethics committee or a set number of employees who work together to deal with the ethics of the organization. All organizations are different so normally corporate behavior is based mostly on the ethics of the corporation or organization. Most organizations focus on the organizations surroundings, social and human rights, and responsibilities when looking at what emotions the ethics have within the organization. The GAAP standards are combined into all corporations’ ethic policies and have reference to the way they handle all their financial guidelines cut out throughout the organization financial accountants. With some health care organizations operating differently and with different principles and techniques each needs to look at their own code of ethics when they grasp the corporation’s business affairs. Each organization, exercise the power of sight at ethics in different ways. One organization may not see that by making an offering of a few dollars on a piece of health care equipment or special supply a patient needs worth the ethics involved thou the lack of patient process. Then you have an organization may find ways to not buy the equipment or supply that the patient needs because the organization has to render pay for it not the patient. Depending on the patient many individuals see health care facilities as good and on the other hand, some see it as bad based on the code of