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Concept Reflection

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Concept Reflection A financial manager has to make sure that a portion of their budget is available to go towards advancements for upgrades to the health care organizations information technology systems. It is very important for managers to be familiar with the changes that occur within information technology. Many healthcare facilities will hire a third party company to be in charge of updating the hospital system with the latest information technology. Financial managers must take into consideration the benefits and the potential cost of the new technology if the institution decides to transition to a newer system. The latest technology transition in the health care field is the adoption of ICD-10. With the implementation of the ICD-10 there are three recognized costs such as system changes, training cost, and productivity losses. This system will provide the following benefits: fewer rejected claims, more accurate payments for new procedures, and better understanding of health conditions and healthcare outcomes (Baker & Baker, 2014). Financial managers have control over making decisions regarding whether or not the organization needs to transition into a new system. Factors that should be considered are that a part of the cost can be a one time cost, and others could be long term costs. When loans are taken out for long term needs capital expenditure budgets are created. This budget is used for the upgrading of new equipment, replacing existing equipment, or acquiring new equipment. The manager needs to identify tasks required during the transition period of an IT change and perform them. These tasks could involve aspects of planning, creating, evaluating, testing, or even all of the above. In other words, an observant manager can work to support aspects of the implementation plan that fall within their areas of responsibility.
Reference

Baker, j., &

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