Question

What impact does accounting have on health care management? What are their unique accounting requirements as? What are some regulatory rules governing accounting in healthcare?

Answer 1

Accounting is an important for any type of organization including health care organization. Accounting is the backbone of the organization, the accounting department allow its management to operate its fullest potential. Without an accounting system, it would be impossible for health care organization to operate in a cost effective manner. It helps to operate organization cost effectively and efficiently.

Health care organization operated in a complex manner as its has the science of health care , the physical maintenance of facility, and the interaction and human behaviors. The complexity of the health care organization has resulted in the spread of accounting and financial to all areas within the organization. It has unique accounting requirement to operate cost effective and efficiently.

Generally Accepted Accounting Principle (GAAP) are the common set of accounting principles, standards, and procedures that companies use to compile their financial statements. GAAP is the customarily accepted way of recording and reporting accounting information. Other than GAAP the health care organization have to follow a set of guidelines established within the organization. If guidelines established by the health care organization are not followed then U.S. Security and Exchange Commission (SEC) will fine the organization and may proceeds criminal action to enforce compliance.