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Reporting Practices and Ethics

Christopher A. Brown

HCS/405

July 15, 2012

Michelle L. Thomas

Reporting Practices and Ethics

The health care environment, in which financial realities and financial ethics play an important role in health services decision making, it is vital that managers at all levels understand the basic concepts of health care finance and how these concepts are used to enhance the financial well-being of the organization. In this paper, we will discuss the four elements of financial management, to include the accepted accounting principles and financial ethical standards. We will provide an example of ethical standards and financial reporting practices.

Health Care Financing is a systematic framework for the evaluation of healthcare systems, as well as perform interdisciplinary research focusing on the relationship between economic development and healthcare (Baker & Baker, 2011).

Financial Management

Health care organizations accommodate services to consumers and also their financial status is also important to providing services. In any organization, financial management is very important toward an organization’s success.   Financial management consists of four elements that work toward an organization financial practices and ethical standards (Dye and Sridhar (2008).

Four Elements

The first two elements of financial management works hand-in- hand are organizing and controlling. Financial managers use four basic financial statements to keep record of the organization’s financial status, balance sheet, the statement of revenue and expense, statement of fund balance or net worth and statement of cash flow.   The Balance sheet allows the financial manager to keep an account on the organization’s worth (owns and owe).   The statement of revenue and expense gives the information on flow of cash. Financial manager use the statement of revenue and expense is used to monitor the organizations spending budget. The statement of...