Assignment:
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 organization's relationship with third-party payers, who account for about 81 percent of a healthcare organization'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 organization'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?