Question

1. Briefly discuss the role of finance in the healthcare services industry. Has this role increased or decreased in importance in recent years? What is the impact of the Affordable Care Act (ACA) on the role of finance?

Answer 1

Answer: The primary role of financial management in healthcare organizations is to manage money and risk in a way that helps to achieve the financial goals of the organization. It involves Involves evaluating the financial effectiveness and overall operations of the healthcare organization to plan for the future. When it comes to strategic planning, there are times throughout the year that audits are utilized to make sure that money is being billed and collected as it should be so that funds are available to meet the needs of the facility. Whether it is a smaller private practice physician’s office or a large teaching hospital, audits are used as a preliminary to strategic planning.

In healthcare, Financial Management encompasses a list of duties far greater than in many other industries. Not only is it imperative to have a competent staff knowledgeable in the day to day operations of the facility in question but also one that is in touch with financial trends within the industry.