Budgets, balance sheets, and other accounting tools provide a wealth of information for managers, but only if they know what they are looking at. It is time to learn the language and rules of finance!
To prepare for this Discussion, complete the readings in your Learning Resources. Think about the financial decisions of many health care settings.
Post a comprehensive response to the following:
- How might the basic accounting rules under the accrual principle differ for you as an individual (or family) from those applied in a health care setting?
- How are financial statements used to demonstrate the financial health of a health care setting? Select three key terms from the chapters (pp. 180 & 206) and explain how those key factors influence financial reporting in health care.
Introduction to Health Care Economics & Financial Management
Chapter 10, “Basics of Financial Accounting and Reporting”Health care administrators often have to review and interpret financial statements. Financial statements are assessments and indicators of the financial health of an organization. They also reflect the perspective, tax status, and priorities of an organization. Financial statements show the impact of decisions made by leadership. In this chapter, you will review a brief history of financial accounting, regulation, and other accounting concepts. You will review the financial statements of the nonprofit SouthSide Hospital in this chapter and in Chapter 11.
Chapter 11, “Basic Financial Analysis”In this chapter, income statements and balance sheets from nonprofit SouthSide Hospital are used to enhance the health care professional’s ability to analyze a health care settings financial performance. Various methods for financial statement analysis and operating analysis are presented.
Donal, B., & Cebenoyna, F. (2007). Alternative evidence on financial analysts’ use of financial statement information. Review of Accounting & Finance, 442. Retrieved from the Walden Library databases: http://search.proquest.com.ezp.waldenulibrary.org/docview/215633746/fulltextPDF/CE74F497BFCF455DPQ/13?accountid=14872
Murty, A. V. N., & Misra, D. P. (2004). Cash flow ratios as indicators of corporate failure. Finance India, 18(3), 1315-1325. Retrieved from the Walden Library databases: http://search.proquest.com.ezp.waldenulibrary.org/docview/224377843?accountid=14872