Reporting Practices and Ethics Paper
Financial management of health care organizations can be a complex challenge for health care managers, from the basic elements of financial management to the heavy burdens of ethical compliance and accuracy. In this paper the subject to discuss is financial reporting practices and ethical standards in health care, how health care reform is changing and making these organizations more accountable, and summaries of generally acceptable accounting principles and general financial ethical standards.
“There are four recognized elements of financial management: (1) planning, (2) controlling, (3) organizing and directing, and (4) decision making. The four divisions are based on the purpose of each task”. (p.5) (Baker & Baker, 2011) These elements help to make the manager’s choices informed and effective. When looking at each element individually, the first one is planning; a manager must identify what steps and tasks need to be accomplished for the organization, he or she may ask what the next step is or what the procedures are. Next, controlling is making certain that a plan is in place and followed in each area of the organization. Organizing staff and identifying the right skills with the right employees, making certain that plans are followed. Study financial reports and keeping past reports to compare the reports to ensure that the reporting lines are clear.
The third element is organizing and directing, deciding what resources are most effective and how to use those resources. The purpose is to run the organization smoothly, effectively and that comes with daily supervision of all the elements described so far. The last element of financial management is decision making. Managers make choices among the available information and alternatives given in the reports, logs, tracking made. All his or her decisions rely on this information; this is why it...