Question

List at least five “Best financial practices” that you believe are important for the healthcare organizations to follow. Base your choice on your reading in this course and research. Explain why each of these practices are important for healthcare organizations. Explain what can go wrong if the practice is not followed. for the mayo clinic

Answer 1

List of Best financial practices that are important for the healthcare organizations to follow are as follow -

1) Financial Feasibility Study - Healthcare Organizations should create a frame work to meet the growing need of financing for various projects as to maintain the mix of debt and equity - With growing changes in technologies and innovation in the field of healthcare industries one has to be ready for financing through Debt or Equity

2) Analysisng Service Lines - REgular analysis of the services and instruments provided and their performances in the market has become vital for the industry- New opportunities & New technologies should be invested into and Outdated services and goods should be discontinued.

3) Forecasting and Control - Organisation need to utilization the resouces available in the optimum manner to achieve the best results with proper mix of services - Forecasting and variance analysis regularly helps the Organisation to find the differences and bridge the gap creating the variances

4) Operational Efficiency - Operation Efficiency is vital in the organisation and it has to be improved on ongoing basis and with improved efficiency comes the improved results in terms of Financial Performances as well as customer satisfaction - Timeline & Controll on the operation can render positive results

5) Expense Analysis - Organisation need to do proper anaysis of the expenses and need to cut on the expenses to achieve the financial leverages- Cost cutting and avoiding wastage of resources are of utmost importance in the the competative market - Outsourcing of the work which is not critical to the business to third party is the best option so that the available resources can concentrate on the core work