Reporting Practices and Ethics

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HCS/490 – Health Care Consumer: Trends and Marketing

June 21, 2016
Professor Jack Heinen

Financial management is a critical part of running and operating any business, and the health care industry is no different. In order for any health care industry to remain profitable and financially organized, it is extremely important for them to have someone designated to make sure that the finances are always current and monitored. It is also crucial that the organization utilizes the four elements of financial management. The four elements include planning, controlling, directing and organizing, and decision-making. Almost every industry that collects revenue sees some kind of financial fraud or abuse, and in the health care industry this has happened in many different ways. Making sure that there are accounting principles and ethical standards in place are an important way to try to avoid such chaos.

The four elements of financial management are critical tools to help the financial manager keep a close eye on the finances from the start of a project to the very end. Planning is always the first element or step, and after assessing the business, the financial manager creates goals and objectives, based on the aims of the business. When making the plan, the financial manager will include the necessary steps to get there, what that will entail, and the end goal. Controlling is the step that comes after planning. Controlling is ensuring everything that was planned is going accordingly. They can do this by following up with employees, checking sales and other reports. During this step it is typical for the manager to find things in the plan that can be improved upon. It is then up to the manager to make sure that they remain organized throughout all projects and