Question

Articulates leader’s perspective on financial management. ( 500-1000 Words)

Answer 1

If patient outcomes is to be improved systemic changes should be made in the leadership style,as the current health care delivery systems are complex .Health care organizational leaders around the world join hands with clinical leaders to maintain financial sustainability and capacity.Healthcare system is ruled by bureaucratic entities ,and raise challenges to health care acessibility ,fragmentation and affordability.

Though efforts have been made to improve the outcomes ,there is no comprehensive restructure of leaderships systems and process within health care have been developed.Leadership should be extended beyond a role rather than a process which can be facilitated and extended beyond the administrative hierarchy.Though patient safety and improved health care reforms are one of the top challenges ,it was recently found that financial challlenges is of number concern among thre group of leaders.

The current health care system forces leaders to place increasing emphasis on financial implications when making operating operating decisions. Financial management is quite a rewarding sience. Therefore we needs a system which respects clinical value systems in light of financial complexity and explores leadership as a process shared among both clinical and business disciplines.Current clinical leadership and governance recommendations propose structural changes without addressing the larger issues of adopting a new leadership paradigmthat promotes processes that bring together the divergent group of stakeholders in health care.Financial management includes the following activities such as evaluation and planning,long-term investment decisions,financing decisions,working capital and contract management .One of the important financial management activity is to control fiancial risk.

Healthcare leaders are facing an hostile financial environment the if they ignore any fraction of finance function they are running the risk of financial deterioration .Today the finance function must support cost-containment efforts ,managed care and other payer contract negotiations,joint venture decisions and integrated delivery system participation.Therefore the leaders must understand about marketing,accounting and human resource management alongside with financial management.They should also have a sound knowledge on how to incorporate financial implications in decisions about their own specialized area.Therefore the leaders should have an understanding of theory and principles of financial management,which will make them more effective at their own specialized work.

Inorder to achieve hospitals commitment to excellence as stated in their mission statement ,the hospital must remain financially strong and profitable.Financially weak organizations cannot continue to accomplish their stated misssions over the long run.Budget is a tool of financial administration of voluntary agencies for forecasting the financial requirements.The task of restimation of financial requirements starts from the determination of lines of activities on which expenditure has to be incurred and determination of the extent of such expenditure.Only through budget we can decide what amount has to be expended in respect of what expenditure keeping in view of expansion and detraction of activities and why that has to be incurred.

Before funds are raised there is a need for preparation .in this process ,working out fo the following details is desired such as

• Activity for which donation is required.
• Total amount required.
• Period for which the amount is to be used.
• Availability of posssible resources
• Contacts made for these resources
• Actual funds raised in the last year.
• Cost of funds raised for the previous year of an estimate for the next period.
• Reasons for short falls in surplus.
• Future strategy.
• Further remarks and general asssessment.

At times some organizations are unable to raise funds.Some of the possible reasons are

• New sources are not tried for fund-raising.
• New methods are tried for fund raising.
• Poor or limited contacts in fund raising.
• Improper programme planning.
• Poor staff morale leading to lack of dedication in their work.

Now the primary role of financial management is in the overalll management of a businesss ,to plan ,to acquire and utilize funds to maximize the efficiency and value of the enterprise