Reporting Practices and Ethics Paper

Reporting Practices and Ethics Paper

Brione Griffin

HCS/405

Diana Schilling

November 26, 2012

Reporting Practices and Ethics Paper

Financial management in health care organizations can be very difficult for health care managers. Health care managers have to face the four basic elements of financial management and ethical dilemmas. In this paper, I will discuss the elements of financial management, financial statements and their goals, accounting principles, and financial ethical standards.

Elements of Financial Management

Financial management in health care organizations is important regardless of its size. In financial management, planning, organizing, controlling, and decision-making are four elements to consider. The planning process is a gradual process that impacts decisions in revenue and organizational goals. Management must organize things that are top priority and group them into departments or categories. Managers then have to make sure that organization is following the plans that have been set for the organization. The manger has to then decide what is best for the organization between different options that have been reviewed.

Financial Statements and Their Goals

Maintaining records that are organized and accurate enable a facility to see where it stands financially and areas that need improvement. There are four financial statements that are included in a financial report. The balance sheet shows a companies assets, liabilities, and owner or stockholders' equity (the difference between assets and liabilities), of a company as of a specific date. The income statement gives a summary of the revenues, gains, expenses, losses, and net income or net loss of an organization. This document shows the facility the difference in the income that is earned and the expenses to operate the facility. This financial document can show the facility how much money is...