6 major objectives of Financial Management.
1. To generate a reasonable net income (difference between collected revenues and expenses) by investing in assets and putting the assets to work.
2. To respond to the myriad regulations in a timely and cost-effective manner.
3. To facilitate the organizationâ??s relationship with third-party payers, who account for about 81 percent of a healthcare organizationâ??s revenues.
4. To influence the method and amount of payment third-party payers choose.
5. To monitor physicians and their potential financial liability to the organization in terms of their ordering patterns and possible negligence; utilization review, credentialing and risk management....
6. To protect the organizationâ??s tax status
Considering those points, if you were part of a newly formed management team, which two would you consider the most critical to your organization's continued viability and success? Discuss the reasons for your selections.
What key objective do you think is the most overlooked? Why does that occur?
As part of a newly formed management team I would concentrate on facilitating the organizations 'relationship with third-party payers, and monitoring physicians and their potential financial liability to the organization in terms of their ordering patterns and possible negligence; utilization review, credentialing and risk management. These objectives would be key to the continued viability and success of the organization. By focusing on the organization's relationship with third party payers you are concentrating on the majority of the proceeds since it accounts for 81% of the revenue. By developing a relationship with the third party payers you are working together, asking what is needed to streamline and facilitate the process to encourage more business so that your doctor's office is ...
This solution discusses which of the major objectives of financial management in healthcare are most important for the organizations success and continued viability. It also discusses which objective is often overlooked and why. It gives examples.