Hcs/405

Reporting Practices and Ethics Paper

Jennifer Gettemeier

HCS/405 – Health Care Financial Accounting

Salome Kapella-Mshigeni

September 3, 2014

Reporting Practices and Ethics Paper

Financial management is traced back in history as early as 400 B.C. when Socrates wrote about the universal function of management in human endeavors (Baker Judith L., 2011, p. 3). Over the years, managers have evaluated and reevaluated managerial principles to accomplish business goals. Healthcare managers use a variety of management activities to operate and organize their facility. Healthcare managers recognize four elements of financial management. Managers in healthcare also use general accounting principles and general financial ethical standards.

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Four Elements of Financial Management

Planning is the first element of financial management. During this stage, managers will identify the goals or objectives. After the goals are identified, managers will start planning the steps that need to be taken to achieve the goals.

Controlling the areas in the organization is the second element of financial management. Managers in this stage will ensure that the different areas of the organization are following the goals or objectives. Managers can look at and compare reports to check on the areas.

The third element of financial management is organizing and directing. While organizing, the manager will decide the best resources the organization has to use to aid in reaching the goals or objectives. The manager on a daily basis will then be directing the organizing process to ensure that it runs smoothly.

The fourth element of financial management is decision making. There will be a constant flow of choices throughout all of the stages. The manager needs to evaluate the choices and possible alternatives to make an informed decision. The decision-making should reflect the goals and objectives of the...