Identify a contemporay health care issue, and give the different between how for- profit organization (versus not-for-profit organizations)are impacted. what are the perspective and responsibilities of the financial management staff and what are the basis rules and regulations of the issue that the financial management of the organization must address.
One contemporary healthcare issue that can be explored is the rising cost of healthcare services. This issue impacts both for-profit and not-for-profit healthcare organizations but in different ways.
For-profit organizations are driven by the pursuit of profit and may prioritize financial gain over delivering lower-cost healthcare services. They may focus on maximizing revenues by charging higher prices for services, which can contribute to the overall increase in healthcare costs. On the other hand, not-for-profit organizations are generally mission-driven and aim to provide affordable healthcare services to the community. They may have different financial objectives, such as reinvesting profits into improving patient care or expanding access to underserved populations.
The perspective and responsibilities of the financial management staff in both types of organizations vary due to their organizational goals. In for-profit organizations, financial management staff are primarily accountable to shareholders and investors. Their focus is on maximizing profitability, managing revenue streams, controlling costs, and making strategic financial decisions to enhance the financial performance of the organization.
In not-for-profit organizations, financial management staff also play a crucial role but with additional responsibilities. They need to balance financial sustainability with the organization's mission to deliver quality healthcare to the community. They may need to allocate resources effectively, seek external funding, manage donor relationships, and ensure financial transparency to maintain public trust. Their decisions should reflect the organization's commitment to providing affordable and accessible healthcare services.
To address the rising cost of healthcare services, financial management staff in both for-profit and not-for-profit organizations must adhere to certain rules and regulations. These regulations can differ by country, but some common areas that financial management staff need to address include:
1. Compliance with healthcare regulations: Financial management staff must ensure adherence to laws and regulations governing billing practices, reimbursement procedures, and financial reporting in the healthcare industry.
2. Insurance and payment policies: They need to navigate the complexities of insurance contracts, negotiate rates, and manage reimbursements to maintain sustainable revenue streams.
3. Cost control and efficiency: Financial management staff must continuously analyze cost structures, identify areas for cost-saving measures, and implement strategies to improve operational efficiency without compromising patient care.
4. Financial reporting and transparency: They should provide accurate and transparent financial statements, ensuring compliance with accounting standards, and communicating financial performance to stakeholders, including regulators, investors, and the public.
5. Budgeting and resource allocation: Financial management staff must develop comprehensive budgets that align with the organization's strategic priorities, balancing the financial constraints and the need for quality healthcare services.
To navigate these complex issues, financial management staff may need to stay up-to-date with healthcare trends, seek professional certifications, collaborate with other departments, and actively engage with regulatory bodies and industry associations.