In spite of the responsibilities of healthcare CFOs changing over the last decades, the fundamental responsibilities of income and expense management as well as the financial skills for a CFOs are still vital and imperative. The CFOs still manage the financial performance of the organization while contributes to the operational decision-making as well. Analyzing the CFO position, the following percentages are CFOs' most important roles: "company strategy (80 percent), followed by the reliability of reported numbers (63 percent), and reliability of budgeting and planning (22 percent) and reliability of budgeting and planning (22 percent)" (Konstans, 2013). Additionally, "regulatory compliance, managing financial relationships, and managing cash …show more content…
Besides, their traditional responsibilities to provide financial and analysis insights, CFOs are greatly involved in supporting and developing a strategy for the organization. Likewise, "the CFOs are usually on the back end of strategy: a strategic decision is made and they are asked to put numbers on them... but also immediately understand the long-term implications of those numbers on the organization's strategy" (Williams, 2012). Additionally, in a healthcare organization, "there are circumstances where very tough decisions around resource allocation, operational management, and strategy need to be made, sometimes very quickly... and CFOs have the ability to marry the numbers to the organizations strategy" which is other responsibilities that CFOs need to have to lead the organization. (Williams, 2012). Therefore, today's CFOs role evolved from the finance functions to analysis and strategy and with increased responsibilities, "CFOs need to move out of their comfort zone and embrace innovation and change", which " is critical to efforts to fuel growth, maintain market share, and improve patient satisfaction and clinical quality, efficiency, and delivery". O'Brien, M. …show more content…
Foremost, they need to work internally to improve the operational infrastructure and find the resources to support critical operation initiatives while protecting the assets of the organization. Likewise, the CFOs need to work externally to build strong inter-organizational relationships with health insurance leaders, provider, and suppliers. Additionally, while the CFOs job responsibilities appear to expand due to the changes..., so, too, "is the importance of traditional financial management practices such as internal control and business analysis... as well as to identify the potential control risk that could further reduce and threaten financial viability" (Langabeer, DelliFraine, & Helton,
Besides, a CFO is responsible for providing investors with an accurate reporting. On the other hand, ethical responsibilities of the professional accountant is essentially important. As a CPA, they must take all the facts into consideration that which action are
The CEO needs to create a corporate culture. His culture will determine what people should be doing and what should do not be trying. He can decide who will stay, who will leave, and how the job will get done. Culture starts with the boss. He can decide how he wants people to act and start modeling the behavior publicly. STOPPED HERE…!!!:)
The key stakeholders for this system change, and to help implement the strategy on providing new patient navigators would be the financial director, chief nursing officer, floor nurses, the hospitalists, and a group of patients and their family. Identifying the key stakeholders is important because with providing new services to a health care facility this group of people will be responsible for accepting the strategy to put in place which includes adding a new job title, approving the salary and the number of people to be hired, on down to how each navigator will be trained and oriented. Although the patients and their may not have much choice in the beginnings of the process of the system change, they can have a say and impact on helping in figuring out the role, and where there are gaps in the care during stays at the hospital, as well as helping in the interview process.
When determining whether to merge or partnership with another hospital is a beneficial choice, one will need to review financial information to make an informed decision. According to Cleverly, Cleverly, and Song in order to make effective decision it requires adequate knowledge and interpretation of financial information. Understanding the accounting processes of business decisions results in effective operational decisions (2012). Some of the financial statements that are used to make these decisions are income, itemized, balance statements, net assets, and cash flow.
Healthcare organizations are faced by both external and internal challenges and need a leader who can direct them to the right path. The senior executives and CEO
...s combination of useful ways to compare, determine, and measure profits, own hospital, and other organizations. The equations and calculations are created for the purpose for organizations and management to use of company standing and profit growth. Accounts receivables is complex, but is created to have a revenue cycle and bring payments in. The revenue cycle is a methodical process used in most organizations for scheduling, revenue turning into cash, and problem solving. Banking relationships are always necessary if the organization permits, and banks are always available to help manage an organization. It’s clear numerous tools and resources are available to help management run their organization smoothly as hurdles can happen of issues. Ratios and accounting equations have a beneficial way of helping organizations in determining the overall standing of growth.
Another reason strategic monitoring is important is because “there are more laws and regulations that apply to health care and biotechnology, with new ones being issued at an accelerating pace” (Moseley, 2009, p. 255). With the laws and regulations changing so often in health care it is important to monitor the changes so that organizations can implement them in their strategic plan as they occur. According to Al-Abri (2007), health care organizations can have a sustainable competitive advantage today if they maintain the ability to change, adapt, and evolve to the changes occurring in the health care industry. It is important for health care organizations to strategically monitor their strategic planning process because of the fast pace changes going on in the industry.
. CMIO (the chief medical information officer) is a new position in healthcare setting but plays just important of a role when it comes to leading the clinical information system. CMIO is more involved in direct contact with physicians when it comes to latest EHR system updates that helps them better perform their
As we look at strategy teams they are composed of strategy managers, analysts and directors, (Paroutis, Heracleous, & Angwin, 2013). Each discipline within the team is vital to a successful outcome. Strategy teams vary in size, they can be as few as 10 or as many as 50 in one team, (Paroutis, et al., 2013). The director oversees the operation, insuring progress is being made and strategies are being developed. The strategy team analysts conduct surveys, develop strategy reports based on findings and provide support to the team, (Paroutis, et al., 2013). The strategy mangers are the people who interact with stakeholders and implement the strategies, (Paroutis, et al., 2013). This is a high pace position that requires excellent social skills and versatility in function, (Paroutis, et al., 2013). This can be a very demanding position that requires extensive
This would pull the company together strengthening it in the face of incoming competition while keeping all its existing structure and value system intact. Rather than take away responsibility from the employees, the functional specialists together with the functional operators’ level would introduce dynamic measures of collecting and coordinating operations across the whole company and thus, not only giving direction but keeping everybody well informed about market conditions/trends and company focussed and prepared for future changes. Teams will then be able to take better decisions in view of the overall company’s short and long- run strategy. Knowing that the company is stable and well prepared for future contingencies boosts the employees’ and shareholders’ confidence.
With no clear expertise in either of these practices, the board must give this authority to other directors. Quick analysis of SMH’s current board shows primarily medical and healthcare representatives. Criteria such as experience in the legalities of public healthcare, policy execution, auditing and finance experience, and business experience would be considered assets to improving SMH’s Board. This issue can be resolved during the initiation process of new directors with such
In-depth knowledge of the organization’s fundamental operations is required for understanding the implications of the key risks a company is exposed to and then assessing the company’s planned responses to risk (Fraser & Simkins, 2010, pg. 64). Training and orientation can aid in furthering the knowledge of administration. Having a vast understanding of the industry and the regulations that govern the industry will aid in managing risk as well, which can be obtained in part through
Operations management is the organizing and controlling of the fundamental business activity of providing goods and services to customers (Encarta, 2005). In the healthcare industry, operations management generally focuses on providing a service of healthcare to patients. An organization has three basic functional areas, and theses are: finance, marketing, and operations (Operations Management, 2004, p.4). Since operations is one of the three basic functions of an organization it holds a strong significance in the healthcare industry. The contents of this paper will explain what operations management means to the writer, and why is operations management important to a healthcare organization.
It should be pres... ... middle of paper ... ... o monitor the health of the company and also to make the right choices. They are the most important users of financial information as without this group using the information properly the company could cease to survive. Bibliography Biz/ed 2004, Accounting [Online], available http://www.bized.ac.uk Duncan Williams 2004, User of Financial Statements, [online], available http://www.duncanwill.co.uk Finance Demon 2004, User of Financial Information, [online], available http://www.financedemon.co.uk Financial Reporting Council 2004, About the FRC [online], available http://www.asb.org.uk Hacker Young Chartered Accountants 2004, Accounts Explained [online], available http://www.account-explained.co.uk Joe Corbett 2004, Class Notes, Borders College, Galashiels