Healthcare Financial Measures

The purpose of financial measurement in healthcare is to provide the community with the services it needs, at a clinically acceptable level of quality, at a publicly responsive level of amenity, at the least possible cost. This is done by providing healthcare finance managers with accounting and finance information to help accomplish the purpose of the organization (Nowicki, 2015). When making accounting decisions about budgeting and inventory control, an understanding of economics, statistics, and operations research is needed.

Major Financial Measures There is no licensure requirements needed to be a healthcare financial manager. Healthcare financial managers observe and supervise many measurements. Some things they monitor are admissions

Monitoring staff levels is an important factor. Also leveling the flow of patients in and out institutions could help to reduce wide fluctuations in occupancy rates and prevent surges in patient visits that lead to overcrowding, poor handoffs, and delays in care. Studies show that overcrowding in areas such as the emergency rooms lead to adverse outcomes, because physicians and nurses having less time to focus on individual patients. One study found that for each additional patient with heart failure, pneumonia, or myocardial infarction assigned to a nurse, the odds of readmission increased between 6 percent and 9 percent (Hostetter and Klein, 2013). All of which costs the hospital money.

Measures Most Important for the Survival of a Healthcare Organization In order for an organization to be successful, they need to survive and grow. A low occupancy rate of hospitals has been a subject of discussion. Supposedly, the national average occupancy rate of hospitals is lower than it should be because of rising costs of hospital care. Factors causing variations in occupancy rates are hospital size, product diversification, and urgent versus non-urgent

The government controls and regulates healthcare somewhat because healthcare organizations are in a position to take advantage of the elderly and sick so there are regulations that protects them. It seems as though healthcare facilities are being paid less for their services today. Some critical measures for the survival of a healthcare organization are to optimize performance and quality. Finding system-wide efficiencies and cost reduction healthcare will help. In order to get better and keep high quality and performance while still raising reimbursements, it is necessary and important to involve doctors with the ideas and plans for any management strategies. Connecting and teaming up with other community interested parties allows the organization to support the financial and quality goals, and coordinate care across the board giving more efficient and quality care (McKesson, 2018). This could help bring occupancy and admission levels up along with maximizing technology’s value by connecting the dots to help reduce complexities and cost. As regulatory, financial, clinical and consumer pressures influence healthcare organizations to produce and provide more effective and efficient care, healthcare technology becomes even more