Healthcare Financial Management

Financial management is a large and important field within healthcare. Financial managers are in charge of overseeing a healthcare company’s financial dealings. To work effectively in their jobs, they must have a clear understanding of the capital and operational budget concepts described above. It is largely their responsibility to ensure that the company’s operational budget is wisely established and followed and adjusted as necessary. Financial managers help to create policies and guidelines for their organizations financial operations. They work to establish adequate reimbursement contracts with insurance companies. They also help to collect information about capital budgeting prospects and ultimately help guide decisions about capital expenditures. Financial managers must work hand in hand with business managers to ensure that the company’s business strategies support their financial and strategic goals (Brumley, n.d.).

Healthcare financial managers are also in charge of making sure that their organization’s budget and financial status supports their delivery of quality care. If the organization’s profits are falling or if their investments fail to bring in adequate returns, the company will eventually be forced to downsize, meaning they must care for fewer patients, or else they must decrease care quality of care they provide. Thus, healthcare financial managers have a direct influence in the quality of patient care the organization is able to delivery. In ensuring financial health, healthcare financial managers must consider the stated mission, vision, and values of the healthcare organization. For example, if the healthcare organization has a goal to expand their community outreach program in an effort to provide more effective preventative healthcare, the financial manager must make sure enough funds are set aside to enable that project (Brumley, n.d.). 

* Brumley, S. (n.d.). Role of financial managers in health care. Retrieved from http://smallbusiness.chron.com/role-financial-management-health-care-76263.html