In the health care environment financial and ethical reporting is very important to produce successful organizations. As health care providers evolve within a facility, it is crucial to understand effective financial management strategies. Comprehending this can eliminate the consequences of fraud and illegal accusations. This paper will illustrate two articles that address financial reporting practices containing ethical standards in health care finance. It will include a summary of the four elements of financial management, a summary of generally acceptable accounting practices and general financial ethical standards. Furthermore, some examples from the articles will mention that reflect ethical standards of conduct and financial reporting practices. Four elements of financial management
It is very important to understand the four elements of financial management, which includes, “(a) Planning (b) Controlling (c) Organizing and directing, and (d) Decision making” (Health care Finance, p. 5. 2011) Planning is the financial manager’s responsibility to meet the organization’s goals and objectives. The purpose of controlling is to make sure the plans are carried out and this is achieved through feedback. Organizing is basically when the financial manager uses the resources available to accomplish the facility’s goals. Through directing, the manager will work daily with the staff and able to achieve the ultimate goal. Decision-making is when the financial manager is capable of making informed decisions through evaluating and analyzing with the resources available. If the financial manager of a health care facility comprehends and applies these elements along with an ethical judgment, the organization will be successful.
Generally acceptable accounting practices
In reference to generally acceptable accounting practices, this refers to a standard framework of guidelines for financial accounting used in any given jurisdiction,...