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Financial Management in Health Care - Essay Example
Finance & Accounting
Pages 4 (1004 words)
Financial Management in Health Care Name of the Student Student Number Grade Course Name of the Instructor 6th March 2012. Introduction Financial management could be defined as the element of management dealing with monetary resources of an organization, in ensuring adequate return on investments…
These aspects of management aim at ensuring organizations operate within profitable margins in ensuring continuity of the organization. The management ensures that organizations find sustainable sources of funding for various activities. Financial management in healthcare takes various perspectives depending on the source of funding for organizations (Gapenski, 2009). Balance sheets, for example, remain some of the best known indicators of financial performance within an organization. Balance sheets form a fundamental element of assessment of the financial position of an organization during specified period. The information contained in balance sheets remains similar within different entities but the functions performed by the balance sheets differ. Profit organization In profit making healthcare organizations, the financial structures of organizations aim at utilizing financial resources to achieve monetary gains. These entities operate like other businesses whose fundamental objective remains making profits from financial resources. The financial management of these entities aims at maintaining profitability for the organization. All financial decisions implemented in these financial entities seek to ensure that the organizations remain profitable and competitive within the industry (Nowicki, 2008). ...