Question

Describe your thoughts on protecting investors and contributors from losing trust in how the organization manages the investment they have made. Do you think the abuse that occurred at Enron could happen in health care? Do you think legislation such as Sarbanes-Oxley should apply to health care? Why?

Answer 1

It Is important to protect investors and contributors from losing trust because most equity growth come from them and is one of the primary objectives in a healthcare organization. If low rates of equity growth we prognosticated in the future most likely the organization will not be able to provide the levels of resources. Open and clear communication is recommended to maintain investors in the loop about the finances or the organization for trust continuance. since being open and communicadve is the beginning of any healthy relationship. Providing the true statement of an organization ,protect the investors and secure a mutual trust for futre equity growth. the responsibility and Transparency Act or 2002 oversee accountability to ensure independence by barring activities that pose conflicts of Interest and to Increase transparency of transaction in the finance department protecting the investors and contributors of another Enron Scandal. Because ol all the regulations and Acts protecting the investors there is minimal chance that could happen again the healthcare system. According to Crudele (2015). Through Regulations and NMS, the SEC has fostered innovations in the stocks markets while recognizing the need to protect fair and efficient access for all investors". therefore Investors are protected. Several sections of the legislation of SOX (Sarbanes-Oxley) Act appear to be relevant to the healthcare industry such as the organization responsibility for financial reports that requires financial managers certify that report contains no false statements and its completely correct. The SOX act is intended to safeguard the ecopomy since the healthcare Industry is a large part of It. There are also a number of provisions of the Act that also apply to privately held companies, for example the willful destruction of evidence to impede a Federal investigation.