Financial management of health care organizations
Healthcare managers participate in various important roles that allow them to form and maintain flourishing organizations. Managers ought to be aware of the decisive elements of management and the generally accepted accounting principles. At the same time, they must realize, stick to, and put into effect the general financial ethical standards. Successful management of finances of healthcare is one of countless tests that mug the organization. Revenues and expenses of the organization are essential because they establish the external and internal finances of the company. The …show more content…
The work of the financial manager is to guarantee that the goals of the company are operating successfully by overseeing employees and backing up those who need it (Baker and Baker, 2007, p. 6).
Decision making in financial management is a step that does not occur on its own. It occurs analogously to planning, organizing, and controlling. All kinds of decision making rely on information, and the primary functions are evaluation and analysis. The main purpose of decision making is to make informed decisions (Baker and Baker, 2007, p. 6).
Most of the health organizations work on the accretion accounting foundation. In Europe, there are no generally accepted standards for accounting for healthcare. Every country has finance and accounting for healthcare provision that is segmented. Their finances are directed to the healthcare organization rather than to healthcare teams (www2.accaglobal.com, n.d., p. 4). This shows that the healthcare in Europe is not following the generally accepted principles. There has been mounting apprehension over the founding of norms that make certain that the ethically tolerable and scientifically sound conduct of clinical trials. The ethical standards require any account of international standards should cover both scientific and ethical norms at once. Reporting systems collect information on unfavorable proceedings and errors. Reporting allows lessons to be shared so that the same