Question

Financial reporting is critical to the success of any organization because this is how managers and other stakeholders evaluate the sustainability and profitability of an organization. The healthcare industry accounts for nearly 20% of the US GDP as of 2018 (BEA, 2019). While there is guidance for financial reporting to the respective government agencies, there is no consistency in the development of financial reports among private healthcare organizations. Discuss the importance of consistent financial reports across all healthcare organizations. Support your statements with research and post your discussion in a few paragraphs.

Answer 1

Healthcare is one of the world’s most vital organisations and due to the increasing level of demand in different branches of healthcare, reducing unnecessary expenditure and enhancing overall output. Healthcare reports can *Help reduce errors

*Enhance the acquisition of vital patient data

*Reduce needless expenditure

*Improve healthcare services and efficiency

*Helps to achieve the financial goals of the organization

*Allows the healthcare organization to plan for the future

When a healthcare organization has strong and organized financial management plans and maintenance of reports, they're able to provide efficient healthcare to all their patients. The appropriate financial management can only able to evaluate the financial effectiveness and overall operations of the healthcare organization thus to the best health care delivery.

Financial management and maintenance of financial reports is an art and a science in any industry, but health care is particularly challenging because the industry changes so fast.