Question

What are the four segments that make a healthcare financial system work, what is the information flow and what is the significance of each? What is the general ledger?

Answer 1

The four segments that makes a healthcare financial system work are as follow:

1. Original Records:  The Original records are secured index and kept in storage location with static and cannot be revised and can only be corrected or supplemented in accordance with approved processes.

2. Information systems: We will use the Enterprise resource planner to maintain the financial information of the healthcare financial system.

3. Accounting system: To run a business you need data records, report, analysis, accurate information about assets, debt, liabilities, profits and that is why accounting is importance for any business activities. The accounting information is very important for the management or the decision making the body of an organisation.

4. Reporting system: Various methods for reporting financial information in a hospital or healthcare sector are discussed. Both statistical and financial reporting are used in management decision making. Constitutes the majority of management information prepared with the hospital’s finance department.

And general ledger is an account or record used to sort store and summarize a company’s transaction. These accounts are arranged in the general ledger ( and in the chart of accounts) with the balance sheet accounts appearing first followed by the income statement accounts .

some general ledger accounts can become summary records and will be referred to as control accounts in that situation all of the details that support the summary amounts in one of the control accounts will be available in a subsidiary ledger.