Question

Describe the role of finance in the healthcare field?

Answer 1

Finance plays a major role in healthcare industry. Proper financial planning is required in healthcare industry for the organization to align with its goals. The most important reason for a healthcare company to plan its finance properly is to make a proper long term investment. In order to make a proper long term investment an effective strategy is required in line with the vision and mission of the company. The company must plan its investment before hand and should foresee the kind of investments, in terms of upgrading the technology used to treat the patients etc., it should focus on. Also, the pricing should be competitive enough for the company to plan for such long term investments. Also, the company should focus on its working capital management for its day to day operations effectively. The company should also plan and identify its sources of funding through debt, grants etc. The cost-benefit scenario has to be carried out before preparing any investment strategy and identifying the sources of funding.