Question

Write a 175- to 265-word response to the following:

• What is the importance of accounting in a health care manager’s role?
• How will you use it in your health care career?

Answer 1

Accounting is important in any profit making organization and health care industry is not any exception. In these high economic growth period, even the non profit making organizations require propoer accounting process.

Accounting helps healthcare managers to manage the Cashflows by managing the revenue cycle of the organization. Revenue is lifeline of any business, so managing such revenue cycle is utmost important for the business. Revenue cycle has following parts

1. Managing a medical officers payments (either as a commission basis or fixed payments)

2. Managing the cash received from the patients (whether depositing them on the sameday with the bank or using for any other purpose)

3. Collecting copay as applicable

4. Collection from insurance payments (Third Party Assurance payments)

5. Following upon denied claims

6. Standardization of certain procedures which helps in timely inflows

Without proper accounting there will not be any tracking on the inflows and outflows. To do proper accounting, we must have efficient personnel to do the tasks. Health care manager's must supervise all these and must be aware of the accounting procedures. It is used in managing the Revenue cycle management which is discussed in the above paragraph.