...Running Head: Accounting Principles and Ethics Article Accounting Principles and Ethics Articles Myrthe SaintLouis HCS/457 November 30, 2009 Victoria Odom Abstract A healthcare organization is one of the most successful business inside of a healthcare organization theres so many different profession within, from healthcare providers such as physician, nurses ,Medical assistants and so many more. .A healthcare organization also provide care, , consistency, and support.In addition to care being providing in health care Financial management is another important assets in healthcare organization. With todays econmy crisis healthcare organization face many financial issues for example, Decreasing revenues, increasing costs and terminating healthcare workers .Being a Mananager,Administrator in a healthcare organization is not a easy job because they have to ready lead in today’s climate and also position their organizations for later financial issues and potential political changes. . In order to have an effective financial management, organization, many health care organizations use the Generally Accepted Accounting Principles, corporate compliance, and the value of ethics. Accounting Principles and Ethics Articles A healthcare organization is one of the most successful business inside of a healthcare organization theres so many different profession within, from healthcare providers such as physician, nurses ,Medical assistants and...
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...and Ethics Paper Generally accepted accounting principles (GAAP) represent the general rules, standards, and practices that are used in accounting. GAAP are required for businesses when reporting financial records. When preparing financial statements, a company’s accountant is mandated to use these principles before they issue these statements to investors and other entities outside of the business. The objective for these standards are to assist in ensuring that ethical accounting practices occur wherein investors and creditors have the confidence that companies are truthfully reporting their financial solvency. In summary, the GAAP are responsible for ensuring that companies ethically record measurements at regular business intervals, prepare and summarize economic information in accordance to ethical standards, accurately measure economic activity, and truthfully disclose information about economic activity. Corporate compliance, ethics, or fraud and abuse Medical fraud and abuse in the healthcare industry is a rampant occurrence that significantly impacts not only healthcare in America but also the entire economy. Fraud and abuse within the healthcare industry can account for approximately 15 percent of annual expenditures. This represents up to $170 billion annually being lost because of fraud and abuse in the healthcare industry. Although the federal government has consistently passed legislation to fight against healthcare fraud, and committed millions of dollars...
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...Kimberly Daniels HCA-240 Paula Arceneaux November 23, 2013 Accounting and Finance Accounting and finance what are they and what’s the difference? Many people who are not in the profession may think they are the same thing and though they have a close relationship they are defiantly not one in the same. Accounting is the bookkeeping part of the business. It is the collection and organization of the financial data of an organization. Accountants are those who are certified and educated in the collection and organization of this data. They must present this data to the company’s management in the form of statements such as balance sheets and income statements. These statements are them used by management to help keep the organization financially healthy. Accounting also involves the reporting of the organizations taxes. Finance which is different but just as important is the use of the accounting data to make decisions for the organization. The data collected and given to management is now used to help with the financial planning, performance review of the organization, and to ensure the company is meeting all obligations including tax reporting. Finance helps with the management of the organizations funds. It helps management decide how and when the funds will be used so that the company can run smoothly and at its highest potential. The accounting department is the backbone within a healthcare organization without it, it would be impossible for the organization to operate...
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...Healthcare Finance I Questions 1.1, 1.4, 1.6 (pp. 23-24) 1.1 a. What are some of the industries in the healthcare sector? Health services, health insurance, medical equipment and supplies, pharmaceuticals and biotechnology and other such as consulting firms and educational institutions. b. What is meant by the term healthcare finances as used in this book? It means “the accounting and financial management principles and practices used within health services organizations to ensure the financial well-being of the enterprise.”(p.22) Accounting functions are needed for the financial management of the company. Educated business decision can’t be made without knowing the detailed accounting part at all times. c. What are the two broad areas of healthcare finance? Financial Accounting and Managerial Accounting. d. Why is it necessary to have a book on healthcare finance as opposed to a generic finance book? This is due to the fact that the healthcare industry has unique, as stated in the text, individual characteristics which require emphasis in these specific areas. 1.4 a. Briefly describe the following health services settings: * Hospital: Provides general, acute care, diagnostics, surgery, usually for patients who need several hours of care. * Ambulatory care: Outpatient care for patients who need less than several hours of care and is usually cheaper than hospitals. 1.6 What is the structure of the finance function...
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...standards in healthcare had to be found. Finding god articles to use as reference was not an easy task. Upon reading the chosen articles, much thought about this topic began to enter my mind. The decision to keep reading even more articles and expand horizons before beginning to compose was a good choice. Because with every article read, my opinions changed and I gained more knowledge. The chosen articles The first chosen article is titled, “Financial reporting responsibilities” written by Carl Tietjen. This article addresses the need to update a 35 year old model that has been generally used in most financial reporting practices. In the article, Tietjen states that most organizations have thus responded by examining their own reporting practices. Then they have been implementing new methods to try to ensure that moral and ethical standards can be upheld. This article does not specifically address healthcare finance however it seemed to be a good reference point for the research. The second article used is titled, Accounting for false objectivity, written by Ralph Palliam. This article states that concludes that, “There is a need for more moral training and leadership to motivate professionals (accountants) to act in the public’s best interest, not only for the sake of the profession as a whole but also the well being of the entire economy.” Source, (Palliam, R. (2011). Accounting for False Objectivity. Journal Of Finance, Accounting & Management, 2(2)...
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...The primary role of financial management is to plan for, acquire, and utilize funds (capital) to maximize the efficiency and value of the enterprise. Because of this role, financial management is known also as capital finance. The specific goals of financial management depend on the nature of the business, so we will postpone that discussion until later in the chapter. In larger organizations, financial management and accounting are separate functions, although the accounting function typically is carried out under the direction of the organization’s chief financial officer (CFO) and hence falls under the overall category of “finance.” Abstract (Moorely, 2013). The key elements of financial management include: Financial planning, Financial Control and Financial Decision-making. All this are basically concerned with the procurement, allocation, and control of the financial resources of a business concern. As health care workers enter the twenty-first century, they must understand the relationships among market-driven forces, the health care workforce, and financial compensation. This understanding can be facilitated by a grasp of utilitarian ethical theory and by ethical tenets of justice such as distributive justice, material principles of justice, and justice as fairness. Health care workers also need to understand how unfair financial compensation can demoralize them and compromise their values. However, professional associations and health care managers can take a proactive...
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...McLaughlin HCS/405 December 8, 2014 Jack Heinen Reporting Practices and Ethics Paper This paper will seek the financial reporting practices, ethical standards, accounting principles, corporate compliance, ethics, or fraud and abuse in the articles that was chosen to be reviewed. Financial reporting in a medical office or a healthcare organization relies on financial data to be close to real time as they can get it. The financial reporting has advantages such as analysis, visualization, and assistance in decision-making ("Financial Reporting", 2009). Chief financial officers use the financial reporting to help identify the profits and the cost of the healthcare organization. Financial reporting will lead the financial personnel to quantified, data-driven choices which will benefit them with accurate planning, forecasting, and budgeting ("Financial Reporting", 2009). Financial reporting can aid in to reduce a cost, profitability, predict and respond to changes in the market ("Financial Reporting", 2009). Ethical standards in a healthcare organization should be guided by integrity, serves as a role model, and support a culture that provides high-quality, cost-effectiveness health care which helps the ethical behavior and practices of individuals throughout the organization ("Creating An Ethical Culture Within The Healthcare Organization", 1992-2011). It does not matter if the person is a gift shop manager or a CEO of a four star organization ethics should be the central mission and...
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...Generally Accepted Accounting Principles in Healthcare Generally Accepted Accounting Principles or GAAP was developed from different accounting entities, one of which was the Financial Accounting Standards Board or FASB. GAAP is a group of standards for accounting with common industry language developed over many years and used by businesses to organize financial information. The main purpose for GAAP is to make a standard way for anyone to pick up a financial statement and be able to compare financials using the same set of rules. GAAP is an accounting method used in health care facilities. These are specific policies that are used when the health care institution must make important financial decisions. To understand financial statements, the importance and relevance of GAAP must be understood. These standards guide accountants in the measuring and reporting of financial events of healthcare entities such as hospitals, clinics, not-for-profit groups, and other healthcare related businesses. The information used in these financial statements must be relevant, reliable, and comparable. Some of the concepts or principles used in the preparation of financial statements by way of GAAP are discussed below. Accrual Principle The accrual principle simply means that accounting transactions should be recorded in the period that they occur rather than when the cash flows related to them occur. In the healthcare field, all revenue earned for in-house patients should be recorded...
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...Debits, Credits, and Inventory Costs Part 1: Double-Accounting Method of Recording When using the double-accounting system, also known as the double-entry method, each transaction on the General Journal and associated account activity catalog must be recorded at least into two accounts. The debit account, often on the left, is denoted by ‘Dr’ while the credit account, often on the right side, is denoted by ‘Cr’. The entries are made depending on the account type, which may be an asset, a liability, an expense account etcetera, or depending on whether the transaction increases the account or decreases it (Lee, 1977). For instance, any transaction noted on the debit side would add to the assets account. Alternatively, a transaction would be entered on the debit side if it lowers the liabilities or the equity. On the other hand, all transactions that lower the assets account would be posted on the credit side. Any transaction that adds to the liabilities or the equity would similarly be entered on the credit side of the General Journal. Debits and credits have effects on particular accounts. A debit entry can increase either an asset account or an expense account, or decrease equity account or a liability account. A credit entry, on the other hand, either increases the liability account or the equity account, or conversely decreases the asset account or the expense account. Therefore, when assets rise, they are recorded in the debit account. However...
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...standards formed for the health care community. Poor ethics and financial planning sometimes effects consumers. According to Nelson (2011), “Basic ethics principles that make up our common morality, including respect for patients, acting in patients’ best interest, avoid bringing harm to patients and treating patients in a fair and equitable manner, serve as the foundation for healthcare values.” This paper will contain a summary of the four elements associated with financial management, generally accepted accounting principles, and general financial ethical standards. The reader will explore Examples from two articles “Ethical Decision making for healthcare Executives” and “Ethics: A foundation for quality” that reflect ethical standards of conduct, financial reporting practices, and the significance of each example. Four elements of financial Management The four elements of financial management are planning, controlling, organizing/directing, and decision making. Planning is the methodical manner in which decisions are made according to the goals of an organization both short and long term. Management must supervise and monitor each...
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...Ethical Financial Management Dana Doody HCS 405 2 Sep 2014 Working as a financial manager comes with a lot of responsibility; and a lot of standards of practice. Just like physicians and nurses, financial managers of health care organization have a set of rules and ethical guidelines they must follow in their practices. In this paper, I will what the four elements of financial management are. There will also be a summary of generally accepted accounting principles (GAAP) and financial ethical standards. Business’s mist follow these standards in order to comply with federal agencies such as the Financial Accounting Standard Board. I will also provide examples from articles that explain how corporations comply with these standards and deal with fraud or abuse. The four elements of financial management. The key to good financial management is to be well organized and have good finical discipline. Health care is a business and having a good concept of financial management will help those businesses run smoothly. “The healthcare industry is a service industry, its essential business is the delivery of healthcare services.”(Refaat, 2014) Having a good understanding of the elements of financial management can help to explain the financial management of that service industry. The first element is planning, planning helps identify the steps that must be taken in order to accomplish the organizations objectives. The second is controlling, this is in place to help ensure...
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...evolving healthcare organizations face an intimidating financial situation in today’s healthcare atmosphere. “Decreasing revenues, increasing costs, and high consumer expectations present a complex challenge for healthcare administrators and medical directors who must not only manage in today’s climate, but also position their organizations for tomorrow’s storms” (Gale Group, 2004, p. 2). This paper will summarize the four elements of financial management; summarize generally accepted accounting principles and general financial ethical standards; and provide examples from articles that reflect ethical standards of conduct and financial reporting practices. Four Financial Management Elements Planning, controlling, organizing and directing, and decision making are the four elements of financial management. The purpose of planning is for the financial manager to identify the objectives and identify the steps required to achieve those objectives. The purpose of controlling is for the financial manager to review and compare current reports against previous data to ensure the plans, set by the organization, are being followed properly and efficiently. The purpose of organizing and directing is for the financial manager to ensure effective resource use and provide daily supervision. Lastly, the purpose of decision making is for the financial manager to make informed choices through primary tasks of analysis and evaluation. These four elements of financial management are the...
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...Comparative Summary Teresa Fluker HCS/577 April 1, 2013 Robert Adams, MBA Three different financial environments exist within healthcare organizations. The three financial environments of healthcare organizations are for-profit, not-for-profit and governmental. The characteristics and services the organization provides determine the type of financial environment it is. This paper will describe each of the environments as well as discuss the policies, structure, and financial management of each. This paper will also attempt to explain why financial management is more difficult in healthcare organizations than in any other businesses. Similarities of Financial Environments While many differences exist among each financial environment, they are also similar in many ways as well. Each organization whether classified as for-profit, not-for-profit, or government has a mission and vision statement that defines the organization’s strategic plans. The mission and vision statement reminds the staff of the long-term goals and ensures they understood what is required to meet the healthcare demands of the public. Financial managers must understand the tax laws that are associated with each type of organization before any decisions regarding financing are made. For-profit (FP), not-for-profit (NP), and governmental environments have stakeholders who have a financial interest in the organization. Organizations depend on profits to invest in...
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...August 31st 2015 Professor Joe Gazdik Introduction There are a lot of important parts in health care organizations but what sticks out the most is financial management. Financial management needs to be taken seriously and everything has to be done accurately because there are consequences if errors occur and the organization cannot function properly. It also helps to see the profit and loss that the organization is having and to see what changes need to be done to fix anything. Four elements in financial management In financial management, there are four elements that are vital to any company and those are planning, organizing and directing, leading, and decision making “…by regularly following the four-step control process, managers can make their department more effective and productive”. Lombardi, D. J., Schermerhorn, J.R., & Kramer, B. (2007.) Planning is important because the manager identifies the steps so that the organizations plans/objectives can be accomplished. Controlling is an important element as well because it makes sure that the plans are followed. The financial manager makes sure that the units/areas of the organization are following the plans that were built. There is a way you can do that and that is to compare reports from earlier times. Organizing and directing helps in financial management because the manager uses the organization to make sure that the plans have been established. The directing is when the manager is day to day keeping track of the...
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...Generally Accepted Accounting Principles Introduction In the past, the financial statements of health care organizations’ were fairly easy to compare. Historically, members of the healthcare community had applied similar sets of accounting rules without regard to their business structure. This meant that whether an organization was a for-profit, nonprofit, or a government owned, every healthcare entity was considered to be in the same industry and the accounting procedures they were forced to follow were similar, thus increasing the level of comparability between organizations. However, today’s standard setting environment requires these similar organizations to apply different sets of accounting standards based of their business model. Resulting in similar transactions being accounted for differently and reducing the level of comparability between financial statements. This has led to the need and implementations of Generally Accepted Accounting Principles. Generally Accepted Accounting Principles, or GAAP, are a framework of accounting standards, rules and procedures defined by the professional accounting industry, which have been adopted by nearly all publicly traded companies in the United States, and allow for the recording and reporting of financial information in a uniform manner (Investing Answers, 2015). The benefit to companies using GAAP is that it makes it easier to compare the financial statements of different companies. GAAP aids in health care to establish...
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