Question

Describe the major objectives of financial management in healthcare organizations.

Answer 1

Financial Management

This is the management process through which the organization handles and manages the financial position and investments of the organization. As we know that financial support is a crucial and important element for any organization in the market it even applies to the non profit organization. The same financial management also plays a vital role in healthcare organizations.

Now let us discuss the objective of financial management in healthcare organizations.

• Financial management has a main objective in the healthcare organization to ensure that every development or changes are done according to the plan as in any sudden situation they are fully prepared with their backup financial support and provide good quality services.
• It helps the organization to make cautious investment decisions in order to make sure that their investment can support their organization for a longer period of time for example we can say that they will estimate the cost of buying new ambulance for the hospital or new health equipments they need to evaluate that how long it will be beneficial for them and according to this they make their investment plans.
• This also helps the healthcare organization to monitor the process and working pattern of the organization and identify the element which need to be changed or removed which can help them improve their financial stability and also the efficiency of the organization.