Financial Management in Healthcare

Table of Contents

Financial Management in Healthcare NameInstitutionInstructorCourseDate Financial Management in Healthcare Healthcare managers have a huge responsibility in making effective financial decisions since this may impact the operations of healthcare organizations as well as affect the quality of healthcare services (Cleverley & Cleverley, 2018). Managers regularly receive monthly budget results, which lead them in the decision-making process based on these results. A manager in charge of a variable hospital department is responsible for budgeting as well as appropriately using the revenues collected to improve the operations of the healthcare organization (Cleverley & Cleverley, 2018). The budgeting process is an important process since this may impact the cost of providing healthcare services which may also affect the net revenues collected. A financial manager can address any short falls in the budget results by minimizing incurred costs, which negatively affect the net revenues (Cleverley & Cleverley, 2018). Effectively managing the incurred costs will provide the organization with financial resources to address any short falls in the budget (Cleverley & Cleverley, 2018). Another way to address budget short falls includes looking for other sources of funding, which may include making proposals to the government, which is the main financier of healthcare services (Rundio & Sigma Theta Tau International, 2016). Managers may also connect with other agencies that are willing to support healthcare organizations in achieving their healthcare goals. Modifying the future budgets to keep the departmental budget in line with the remainder of the fiscal year will involve analyzing the expenses based on previous budgets (Rundio & Sigma Theta Tau International, 2016). This will enable the manager to adjust the budget by cutting back on spending on some of the unnecessary services as well as look for other ways to increase the revenues which will led to increased saving (Rundio & Sigma Theta Tau International, 2016). Mangers should be able to understand how different variables have an effect on budgets and variance reports which include having unmet goals through changes in business conditions. These variables bring about budget variances between the budgeted and actual figures in a certain accounting period (Rundio & Sigma Theta Tau International, 2016).ReferencesCleverley, W. O., & Cleverley, J. O. (2018). Essentials of health care finance. Burlington, MA: Jones & Bartlett Learning.Rundio, A., & Sigma Theta Tau International. (2016). The nurse manager’s guide to budgeting & finance. Indianapolis: Sigma Theta Tau International.