Question

Q1.What do you mean by financial management of health care organizations? Identify key elements that are driving changes in health care delivery.

Q2. The following are account balances (in thousands) for ALLAYAKA Health Plan. Prepare a balance sheet and statement of operations for the year ended December 31, 2012.

Net property and equipment	$ 2,000
Accounts receivable	$3,000
Medical claims payable	$37,000
Patient service revenue (net of contractuals)	$ 950,000
Supply expense	$ 255,000
Net assets released from restriction for operations	$ 45, 000
Depreciation expense	$ 35,000
Labor expense	$300,000
Provision for bad debts	$12,000
Net Assets	$61,500
Cash & cash equivalents	$97,000
Long-term debt	$3,500

Answer 1

Meaning

In healthcare organisation, financial management involves handling daily financial operations, like negotiating contracts, making cash available for expenses eg. payroll, and maintain fund for uncertanity. For the company's top level, financial management means providing information to the outsiders. For example, health care providers, may decide to offer treatments by buying new medical equipment. Helping to make the decision and finding the best way to pay for it are both part of financial management.

FM of healh care organisation includes both profitability and viability as goals. FM refers to efficient and effective management of money in such a manner as to achieve objectices of organisation.

Key elements of driving changes:

1.Almosost all individual have insurance coverage.

2. States create insurance exchanges.

3. Bundled payments.

4. Accountable care organistaion are available.

the focus of new healthcare legislation includes improvement In quality and efficiency,provide compensation adjustment, investment in health information technology. The most important driver of change is to help ensure better patient outcomes,reduce waste,steamline of treatment process, provide more efficient care etc