Managing financial risk is an important responsibility of medical managers. Risk management is an important process to keep the finances of all healthcare organizations safe. Discuss the following:
1. What are the financial risks to healthcare organizations?
2. What role do the accountants play in risk management?
3. Why is it important to hire accountants that understand the unique needs of a healthcare organization?
Participation Requirements: The minimum number of posts this week is 3 substantive posts (total) for the week on 3 different days. Initial post is due by Wednesday. Please refer to the grading rubric for discussions in your gradebook. Remember that APA format is required.
Shauna Lewis
1. Healthcare organizations face a variety of risk. Some financial risk faced in healthcare organizations include:
General, Auto and D&O liability: these loses can be expensive due to claims resulting in monetary awards to the plaintiff, punitive awards and increased medical expenses. Other risks include robbery or theft within the healthcare organization and medical malpractices resulting from patient care errors. Medical malpractice is the largest risk in healthcare organizations.
2. Accountants play a vital role in risk management. Accountants help to minimize financial risk within an organization. When a claim is filed, accountants can help to review company budgets and finances and identify risk before they occur.
3. It is important to hire accountants that understand the needs of a healthcare organization because healthcare accounting is very unique. Accountants must understand concepts that are exclusive to healthcare to be able to better serve the healthcare organization.
Reference:
Harrison, C & Harrison, W. (2013). Introduction to Health Care Finance and Accounting. Clifton Park, NY: Delmar, Cengage Learning.
Michelle Martinez
RE: Week 4 Discussion
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1) The main risk in the healthcare field in United States is malpractice. Medical professional are not perfect individuals, like anyone else they can make mistakes.
The difference is that a mistake in the medical field can end and individual's life or live him with a permanent damage. Therefore, people in the medical field
should be extremely careful and they should purchase the Malpractice insurance to protect themselves and their business.
2) Accounts play an important role in risk managing by helping to draft financial statements, financial strategies an accountant should
be prepared to face any problems the company can face. Accounts help to improving the internal control program to decrease any types of risk.
3) Accounting is the most important part of any successful business. Accounting records the profits of the company their losses the credits they have and the debts. It tells you the status of the business if is successful if it needs some changes etc.
The accountant working in the healthcare field, need to understand the rules and regulations in the healthcare organization so the accountant and the company can be successful. By having healthcare knowledge an account can recognize areas that require more control to avoid any financial burden.
Reference
Harrison, C & Harrison, W. (2013). Introduction to Health Care Finance and Accounting. Clifton Park, NY: Delmar, Cengage Learning.