Reporting Practices and Ethics Paper

Reporting Practices and Ethics Paper

Debra Fuller

HCS405

May 13, 2014

Jason McCormick

Reporting Practices and Ethics Paper

The business of finance management is complex no matter the type or size of the health care business. Effective management in health care finance is crucial to the company’s success. The responsibilities are enormous, and the financial management team must ensure that the facility’s mission statement and business code of ethics is a current and accurate. Financial reporting should also be in alignment with the company’s mission statement and code of ethics. Organizations must accurately disclose financials to the public and shareholders. This paper will discuss financial management in health care, accounting principles, ethical standards of conduct, and financial reporting practices in health care.

Generally accepted accounting principles are a set of standards that accountants in the United States use to determine how to format and conduct their reports. Ethical components for financial accounting professionals include objectivity and integrity, independence, responsibility, and competency. The future of the company is dependent on ethical practices and proper reporting. Financial crimes, corporate fraud, and health care fraud are on the rise. Ethics programs and corporate compliance have become important topics in health care. In order for ethics programs and corporate compliance programs to be effective, there must be a commitment to honesty and for corporate conduct to be responsible. There must be a commitment to improving the quality of reputations and corporate practices in communities. Corporate boards and management level employees share the responsibility for overseeing the company’s compliance and ethics programs. Audit departments must educate themselves and their employees, participate in the implementation of the compliance programs, and ensure that adequate resources are available. There has to be lines of communication...