The purpose of healthcare financial management is to provide both accounting and finance information to assist managers in accomplishing a healthcare organizations goals and objectives. A variety of managers assist in this role, often led by the organizations CEO (Chief Executive Officer) and CFO (Chief Financial Officer). It is important for healthcare managers at all levels to have a working knowledge of the six major objectives of healthcare financial management. Each of these objectives complement each other to build a successful organization from generating income to protecting tax status. Our Case allows for the study and exploration of each of the six objectives.
After completing the required readings:
- Articulate the six major objectives of healthcare financial management. What does each individual objective encompass? Be as specific as you can in your descriptions.
- Which of the six do you have experience with, and which do you feel you should devote extra study time to within this course? How could this learning best be accomplished?
This Modules SLP is intended to allow you to apply what you have learned in the background readings regarding performing an analysis of a healthcare organizations basic financial statement of operations. After completing each part of the background readings, search online for a healthcare organizations statement of operations (at least two years of data; the organization can be inpatient or outpatient, either real or fictitious). Examine each of the columns and the totals in the statement of operations, using each of the topics introduced in Chapter 3 of the required background reading by Dr. Nowicki (2018), then answer the following:
- How is your chosen organization doing in terms of its overall financial health?
- What is your assessment of the organizations revenues, expenses, operating income, nonoperating income, etc.? How have each of these lines changed from one year to the next?
- What might the changes signify, and what might be the logical cause of the changes? What would your recommendations be for the following years revenue cycle?
- How do changes in the economic market often affect the healthcare financial environment? Do you believe the healthcare revenue cycle models the rises and falls of the larger economy?