Hco Budgeting System

Why is a financial system important to an HCO; does a budget really make a difference? The HCO is undergoing many exciting changes that effect how the HCO operates. There are technological Electronic Health Records (EHR) and Electronic Medical Records (EMR) upgrades, payment, and system billing changes and practices, and quality improvement measures. The swift changes in Healthcare include costs that require a financing budgeting system. “The financial plan is a reality check for the HCO organization” (White and Griffith 433). A finance system records and reports HCO transactions. The recorded transactions are useful to set and achieve performance improvement measures. As performance improvement goals are reached, new financial opportunities

Without a financial cost accounting system in place, the HCO puts itself at great risk for errors and miscommunication. A cost accounting system is a system for recording, analyzing, and allocating cost to the individual services provided to patients” (Imus 1). Likewise, a cost accounting system is comprised of many different aspects that establish a stable financial budget model and forecast. One well-run HCO that has a solid budgeting system is Bert Nash, Community Health Care Center. Bert Nash is located at 200 Maine St, Ste A, Lawrence, KS 66044. “Bert Nash is a non-profit, comprehensive, mental health facility located in Douglas, County, Kansas…The center provides a number of outpatient therapy options for adults and children, including individual and group therapy and several specialized services” (bertnash.org). Bert Nash is an organization that helps the community, so the author was curious to learn more about the health care centers financial

A healthcare dashboard “Consolidates key performance indicators and other important organization metrics across health care programs and service areas… Helps health care executives and managers identify areas that may need improvement” (cphs.ca). The author asked Ms. Kihm, “What financial information you would want to see on a monthly dashboard if you were a CEO?” (New). Ms. Kihm shares, A Dashboard shows fee revenue per business day. Also, the dashboard shows Medicaid insurance on an average and how much it is for that day. Surely, the dashboard helps Ms. Kihm to determine how much it will cost in revenue if there is a business meeting. In detail, the dashboard conveys how many services are conducted. Additionally, the dashboard shares account receivable information; such as how many numbers of services in dollars are older than 30 days since billed to insurance. In general, the dashboard continues to show how much it will cost in expenses. Ms. Kihm analyzes the monthly expenses categories to compare and contrast by year to date and prior month for Opportunity for Improvement (OFI) to delegate to Performance Improvement Teams (PITs). The dashboard is a way to measure the overall success and downfalls within the HCO. In particular, the dashboard data is important for all stakeholders to stay abreast the current financial trends.