Question

List the major financial measures which are monitored by financial managers in the U.S. healthcare industry and, for each measure, provide one or two examples of decisions that might be informed by that measure. Finally, identify the one or two measures you think are most important for the survival of a healthcare organization and explain why you think they are most important. PLEase provide one recent reference. Thank you

Answer 1

Major financial measures which are monitored by financial managers in the U.S. healthcare industry:

Health care finance managers focus on helping organizations such as hospitals & nursing homes run efficiently & profitably.

At the same time Finance professionals gather the accounting & other financial information that helps them make smart decisions, monitor internal spending & figure out areas of financial strength & weakness.

Following are the major financial measures which are monitored by financial managers in US:

• Health care finance managers develop and implement strategies to help health facilities generate sufficient revenue
• They work on Protecting Tax Status. Thus a health care finance management team focuses on ensuring compliance with tax exemption requirements of the organization.
• Health care finance managers monitor spending within a health system to identify fraud or misuse of funds.
• Health care financial management team develops strategies to help the facility to minimize the financial risks associated finalizing the agreements with third party payers by negotiating better contracts with insurance companies.

The examples of decision should be in this chain:

• The policy finalization
• Salaries and other appraisal finalization

Out of these the major financial measures are: Protecting the tax status which is very required

And Third party agreements especially with insurance company as it are the need of regulation as well as in the organization it is mandatory for each and every patient.

Reference: the official site of Healthcare Financial Management Association