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Financial Management &Information Systems in Healthcare

Discuss the connection, if you perceive one, between financial management and information systems (including electronic data exchange). What efficiencies do you see? Impediments?

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Financial management and information systems have a connection in many ways: to accurately measure financials it is important to know exactly where an organization stands and information systems allow timely, accurate movement of data. Information systems can give accurate indications of payables/receivables, sales, and margins. Electronic data exchange allows trading partners to interact without human intervention, ensuring that documentation is in place as needed, to improve financial management. Time delays are greatly reduced, not only as a result of less human interaction, but also there is no delay due to mail or fax delay. Timing uncertainty is for the most part eliminated, which allows organizations to better-forecast cash flows. Information systems provide a more system-based approach to managing financial information and its' components.

Electronic transfer of information allows information to be standardized more efficiently, thus fine-tuning operations. Suppliers can decide on specifications including format of information and timing. Use of EDI can reduce human interaction and possible errors, again, allowing for lower costs and better information which can help to provide financial management more accurate information. EDI systems are more accurate "because there are fewer points ...

Solution Summary

This solution discusses the connection between financial management and information systems in managed health care, including electronic data exchange. It discusses efficiencies and impediments. APA formatted references are included.