Viewpoint Of Healthcare Manager

Viewpoint Of Healthcare Manager

The first point of view is that of the healthcare facility manager, who believes it is necessary to go ahead with financial management effectively and efficiently. This manager is likely to claim that doing so is essential to keep the level of care that patients get at an acceptable level (Dong, 2015). In addition, according to this point of view, the healthcare system could cut expenses if it improves its financial management practices and becomes more efficient and effective.

The second point of view is that of the healthcare facility manager, who believes it is critical to proceed with financial management openly and honestly; management would claim that the hospital system would be able to create trust with patients, families, and the community if it maintained an open and honest dialogue with all parties involved. In addition, this perspective asserts that the hospital system will be able to increase communication and cooperation among all stakeholders if it adopts a transparent policy and operates openly.

The third point of view is the healthcare facility manager, who believes it is essential to go ahead with financial management responsibly. This management believes that the hospital system will be able to enhance both its quality of care and its patients’ safety if it adopts a more responsible culture. Additionally, according to this point of view, the hospital system will be able to boost its efficiency and efficacy if it adopts a more responsible attitude.

Providing a framework for how the hospital system may go ahead in a manner that is efficient, effective, transparent, and accountable is one of the reasons why these points of view are crucial in the administration of the finances associated with health care. In addition, the perspectives presented here may assist in guiding the decisions made by administrators inside the hospital (American Hospital Association, n.d.).

The process of managing the finances of healthcare organizations is complicated, involving a wide variety of diverse considerations. Managers in the healthcare industry need to be familiar with and able to interpret financial statements, as well as be familiar with and able to use various tools for financial planning and budgeting, and they also need to have a solid understanding of the various funding options available to healthcare organizations.

Managers in the healthcare industry must have a solid grasp of basic financial concepts for various reasons. To begin, having a solid grasp of financial concepts is necessary to make intelligent choices about the distribution of limited resources (Speranzo, 1984). Second, a grasp of financial concepts may provide light on the many ways healthcare organizations are built and funded, which is useful information for gaining an appreciation of the nature of the competitive environment. In conclusion, having a solid grasp of the fundamentals of finance may assist managers in the healthcare industry in more successfully lobbying for resources from public and private insurers.

Information on a company’s earnings, liabilities, assets, and income is essential for administrators of healthcare facilities. The income statements of a healthcare organization are a useful tool for analyzing patterns over time since they detail the amount of money being generated by the company (Healthcare Financial Management Association, n.d.). The information provided by an organization’s assets and liabilities regarding its current financial health may be utilized to influence choices about the most effective way to distribute its available resources. Profits are a useful indicator of an organization’s overall financial success and may be used in goal-setting and establishing benchmarks for subsequent periods.

A chief financial officer (CFO), often known as a healthcare financial manager, supervises the company’s financial operations. This involves developing and implementing financial goals, preparing financial statements, supervising billing and collections, and managing investment operations, among other responsibilities. Additionally, the CFO often has a position on the business’s board of directors.

Memorial Hermann has a lot of obstacles regarding the funding of health care due to a variety of factors. To begin, the organization will see large decreases in the money it receives from the government. Second, a growing number of private insurance companies are unwilling to pay high prices for medical services. As a direct consequence, Memorial Hermann is likely to see a drop in total income. In addition to this, the company has a significant amount of debt, which has placed a burden on its financial situation. Lastly, the organization is also confronted with rising rivalry from many healthcare providers.

The obstacles that Memorial Hermann must overcome to provide enough funding for medical services may be circumvented in various ways. To begin, the group may try to boost its earnings by engaging in philanthropy and other forms of fundraising. Second, it may minimize expenses, such as decreasing the amount spent on administration or negotiating cheaper rates with many suppliers. Thirdly, it might look at ways to improve the efficiency of its operations, such.

References

American Hospital Association. (n.d.). Financial management in healthcare organizations. Retrieved from https://www.aha.org/system/files/2018-10/ Financial%20Management%20in%20Health%20Care%20 Organizations.pdf

Dong G. N. (2015). Performing well in financial management and quality of care: evidence from hospital process measures for treating cardiovascular disease. BMC health services research, 15, 45. https://doi.org/10.1186/s12913-015-0690-x

Healthcare Financial Management Association. (n.d.). Financial management in healthcare organizations. Retrieved from https://www.hfma.org/Content.aspx?id=4332

Speranzo, A.J. (1984). Financial management of hospitals. American Journal of hospital pharmacy, 41(5), 935–941.

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Memorial Hermann is a hospital system facing serious financial issues regarding its operations and meeting its vendors’ financial obligations. Mr Jones, the chief executive officer (CEO), called a meeting of some of the administrative managers to share their viewpoints on moving forward.

Viewpoint Of Healthcare Manager

Write a 3-page response and include the following:

• Describe the 3 viewpoints of the health care managers on how to move forward.
• Explain why these viewpoints are important in healthcare financial management.

Answer the following:

1. Discuss how the elements of financial management relate to the function of the health care manager.
2. Examine why healthcare managers need to understand financial principles.
3. What information do income, liabilities, assets, and profits tell the healthcare manager?
4. How does the function of a healthcare financial manager or chief financial officer (CFO) relate to understanding these concepts?
5. What are the current challenges affecting healthcare financing at Memorial Hermann?
6. How should these challenges be mitigated?