Chapter One of "Essentials of Health Care Finance" describes major objectives of healthcare financial management including generate income, respond to regulations, facilitate relationship with third-party payers, influence method and amount of payment, monitor physicians, and protect tax status. Please pick and describe three of these major objectives. Are some of the objectives more important than others? Why?
The first objective is to generate income. The health care organization must generate sufficient revenues so that after its expenses are defrayed, there is adequate net income. Financial management has to carefully monitor the flow of revenue as well as control costs so that the objectives of earning a reasonable income are achieved. The second objective is facilitating relationship with third-party payers. This means maintaining relationships with insurance companies, employers, and ...
Why health care organization must generate sufficient revenues is explained in a structured manner in this response. The answer includes references used.