Financial Reporting Practices

Reporting Practices and Ethics Paper

Ethics within any industry and organization is vital for its success. When those ethics have been compromised, it can be detrimental to the organization. Within the health care industry, it is vital they adhere to the ethical standards that have been established by the federal and state governments. For ethical standards to be followed, the health care executives are responsible to establishing policies and procedures. Understanding the financial aspects of the health care organization such as, where exactly does health care spending goes and how to reduce the inefficiencies and financial waste within the system is also important. This paper will address the financial reporting practices and ethics within

These standards of practices are done in for profit and non-for profit health care organizations. There are specific accounting principles that the health care organization must adhere to. They are to report there financial position, meaning a financial balance document which reflects their overall financial position. Secondly, the organization must report in detail the financial outcome of the organization, such as, the revenue and expenses and a complete documentation of the organizations income. Lastly, the health care organization must also provide financial disclosures. These basic principles are known as GAAP. The purpose of these guidelines are to convey a set of policies and procedures for financial statements that are to be followed prior to presenting them to the stakeholders of the organization.

Being compliant is necessary for any organization. Within the health care industry, corporate compliance, ethics, fraud and abuse is a priority. Health care organizations must be vigilant in abiding by the ethical policies. By establishing ethical and compliance policies and procedures, this will undoubtedly present the commitment and the responsibility that the health care organization has for financial practices. Any health care organization that wishes to remain operational must abide by the rules that have been established by the organization themselves as well as state

This is important because it will show the type of business that is being handled, the service they are providing to, and most importantly how their skills will be used. Being competent is one of the key ethical guidelines the all financial professionals will maintain. Accounting professionals must also maintain objectivity, meaning they cannot provide any financial accounting duties for any other health care organization that can be considered as a conflict of interest. Finally, as a financial professional for the health care organization it is imperative that they operate with confidentiality. The health care organization has access to information that they are in partnership with. It will be considered a breech of confidence if the information is compromised. It is also imperative that financial professionals do not use any information for personal or professional gain because that will be considered unethical and