discus 5, resp, lesson
BYSTANDER
peersresponse..docx1
Lisa
Financial Management: Importance to Organization, the role of the manager, and financial decision making.
When most people think about working in healthcare they think about patients but healthcare is a business that needs to make money in order to survive. Finances play a role in almost all decisions made in relation to maintaining and growing the business, therefore healthcare managers at all levels must understand the fundamentals of finance.
Importance to the organization- The primary role of finance in health service organizations is to keep the business running. In order to do so, healthcare finance is used to plan for, acquire and use resources to maximize the efficiency and value of the organization. There are two major areas of finance: Accounting- which records the economic events that reflect the operation’s assets and its income/spending, and Financial management- which provides the tools managers need to make better or future financial decisions that help raise capital (Reiter, 2018).
Role of manager- The size of the health care facility changes the level of the financial team available. A major hospital may staff a Chief Financial Officer (CFO) to head their financial department and have senior managers under them such as comptroller and treasurer, while a small business may have one individual who wears all the financial job hats. The purpose of healthcare financial management is to provide accounting and finance information that helps healthcare managers accomplish the organization’s purposes (Nowicki, 2018). The major objectives of a Healthcare Financial Manager are to generate income, respond to regulations, facilitate relationships with third-party payers, influence the method and amounts of payment, monitor physicians, and protect tax status.
Financial decision making- All organizations must raise funds to buy assets necessary to support operations. These decisions such as the choice between short-term and long-term debt or the use of leases versus conventional financing. Though senior managers and financial staff typically make these decisions they affect managers at all levels (Reiter, 2018).
Resources
Michael Nowicki. (2018). Introduction to the Financial Management of Healthcare Organizations, Seventh Edition: Vol. Seventh edition. Health Administration Press.
Kristin Reiter. (2018). Gapenski’s Fundamentals of Healthcare Finance, Third Edition: Vol. Third edition. Health Administration Press.
Ola.
The topic I chose to discuss Financial Management: Importance to Organization, role of the manager, and financial decision making. For an organization to grow and be successful there is need for proper financial management. Financial management can be explained as the strategic planning, organizing, directing and controlling of financial undertakings in an organization or an institution (LSPF staff2018). To achieve a smooth running of an organization there should be accountability of how funds are dispersed. There should be a guide and proper planning of allocation of funds. For instance, the funds allocated for public relations should not be used for social welfare. For there to be proper accountability, the role of the manager is very important. It is job of the manager to act as an intermediary between the employees and the stake holders. The manager also assist in acquiring funds from sources to run the organization smoothly.
In an healthcare organization for example the managers help to plan, the proper quality of care and not the nurses. The nurses are accountable for all procedures, and processes related to nursing practice including patient care. Managers remain accountable for those policies, procedures and processes uniquely related to management and finance and resource management (Woten M, Kasrakashian 2017), In todays economy there is need for proper financial management because for an organization to function properly there is need for finance, this is why it is important for the manager to be involved in financial decision making. In my job for example we hold periodic meetings with the manger and sometimes explain to her how the organization is doing. she in turn explains to us what we need and how she will channel the finances of the organization. The manager also decides when and who get bonus checks. she always know when the organization can afford an expense or not. Finally, for the financial stability of an organization the role of a manager is very important in financial.
References
Shared Governance: Understanding The Manager Role
Woten M RN. BSN. karakashian Al RN. BSN.
umgc library OneSearch
London School of Business &Finance
what is the importance of financial management LSPF staff journal 2018
