Health Services and Financial Management
Health services and financial management are two distinct yet overlapping fields of expertise. Health services involve delivering medical services and treatments to maintain or improve a person’s health. At the same time, financial management is the process of identifying, monitoring, and controlling the use of financial resources (Heald & Hodges, 2020). Understanding how these two fields interact is essential to understanding the unique aspects of health services and financial management.
The accounting functions of health services and financial management are distinct yet highly interdependent. Health services accounting functions focus on recording and tracking medical services, treatments, and patient outcomes. This allows health service providers to monitor and optimize the cost-effectiveness of their services. Financial management accounting functions focus on tracking and monitoring the flow of financial resources. This includes analyzing and forecasting budgets, tracking expenses, and monitoring cash flow.
These distinct accounting functions have a direct effect on operational oversight. For example, in health services, recording and tracking medical services and treatments can help providers identify opportunities for improvement in patient outcomes. This can lead to better utilization of resources and cost savings. In financial management, tracking expenses and cash flow can help managers identify potential cost savings and areas for improvement in resource allocation.
These unique health services and financial management features also affect the sector’s financial management. Understanding the cost-effectiveness of medical services is essential for maintaining financial viability (Williams et al., 2021). Financial management plays a vital role in ensuring financial resources are allocated in a way that maximizes cost-effectiveness and minimizes waste.
The principles of budgeting, forecasting, and financial analysis, as outlined in the course material, are essential tools for understanding the financial health of a health services organization. Financial management professionals use these principles to identify cost savings, track expenses, and monitor cash flow. This is essential for maintaining financial health and stability.
In conclusion, health services and financial management are critical in delivering quality care, cost savings, and financial health of a health services organization. Understanding the unique aspects of these two fields and how they interact is essential for the effective financial management of the sector.
References
Heald, D., & Hodges, R. (2020). The accounting, budgeting and fiscal impact of COVID-19 on the United Kingdom. Journal of Public Budgeting, Accounting & Financial Management, 32(5), 785-795.
Williams, J. T. W., Pearce, A., & Smith, A. B. (2021). A systematic review of fear of cancer recurrence related healthcare use and intervention cost?effectiveness. Psycho?Oncology, 30(8), 1185-1195.
this is was qoustion
Unique Aspects of Health Services & Financial Management
There are a number of unique factors relating to the health services sector:
Compare the two types of accounting functions.
Describe how the accounting functions affect operational oversight.
How do these unique features affect the financial management of the sector?
Expert Solution Preview
Introduction:
Health services and financial management are two unique yet interconnected fields that play a crucial role in delivering quality healthcare and ensuring the financial stability of a health services organization. In this response, we will explore the unique aspects of health services and financial management and how they are interdependent.
1. Compare the two types of accounting functions.
The accounting functions in health services and financial management are distinct but interdependent. Health services accounting functions focus on recording and tracking medical services, treatments, and patient outcomes, while financial management accounting functions focus on tracking and monitoring the flow of financial resources, analyzing and forecasting budgets, tracking expenses, and monitoring cash flow. Health services accounting helps identify opportunities for improving patient outcomes, while financial management accounting identifies potential cost savings and areas for improvement in resource allocation.
2. Describe how the accounting functions affect operational oversight.
The accounting functions play a crucial role in operational oversight. In health services, recording and tracking medical services and treatments can help providers identify opportunities for improvement in patient outcomes, allowing them to optimize the cost-effectiveness of their services. In financial management, tracking expenses and cash flow can assist managers in identifying potential cost savings and areas for improvement in resource allocation, leading to better financial stability.
3. How do these unique features affect the financial management of the sector?
The unique features of health services and financial management affect the financial management of the sector significantly. Financial management plays a vital role in ensuring financial resources are allocated in a way that maximizes cost-effectiveness and minimizes waste to maintain financial viability. The principles of budgeting, forecasting, and financial analysis are essential tools for understanding the financial health of a health services organization, identifying cost savings, tracking expenses, and monitoring cash flow, which is critical in maintaining financial stability. Thus, understanding the unique aspects of health services and financial management and their interdependence is essential for effective financial management of the sector.
References:
Heald, D., & Hodges, R. (2020). The accounting, budgeting, and fiscal impact of COVID-19 on the United Kingdom. Journal of Public Budgeting, Accounting & Financial Management, 32(5), 785-795.
Williams, J. T. W., Pearce, A., & Smith, A. B. (2021). A systematic review of fear of cancer recurrence related healthcare use and intervention cost-effectiveness. Psycho-Oncology, 30(8), 1185-1195.
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