Healthcare Case

Healthcare is a very in depth business there are many changes that happen on a constant basis. Changes are made by the government, health insurances companies, and even internally by the company itself. In healthcare and any other field of business, there always must a plan that is set into place for its financial needs.

In financial management there are four elements; those elements are planning, controlling, organizing and directing, and decision making. Each of these elements plays a big role into the financial management process. Planning allows the medical organization to set forth goals and guidelines to ensure that the company has a successful year ahead and reaches its goals. Controlling allows the company to make sure that all of the key factors in order to real their goals are being followed. Organizing and directing plays a major role in financial management, because it gives a guarantees that all departments are holding their weight in order to make goal. The last element brings all of the other elements together to make decisions for the hospital as well as for the community.

While following the financial management elements they must also follow the accounting principles set forth by the GAAP. The GAAP is a set of rules and regulations, so that all financial sheets are the same for the companies financing reports. These rules and regulations are set into place so that all financial sheets can be read by each company without any question of what was reported. The rules and regulations help in making financial decisions as well as improving long term decisions. Once these reports are finalized they can used to maintain records on financial reports from year to year.