Summary Paper: Financial Environment Structure

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On the other hand government, financial management is taken care of by their government team. Most of the time the government uses taxes to pay for all their bills and ideas. The more debt they get into, the more money is being taken out of our tax dollars. They never have a problem with cash flowing in but the question is, is it being spent the right way and is it going to our veterans trying to provide them with better services and health care. When a certain situation happens in the U.S, and it costs the government more money it, will affect the for-profit and not-for-profit financial environment. It will cause them to up their prices and focus on making a profit instead of focusing on the community.

Effective Financial Management Difficulties

Financial management in health care is more difficult than other organization because it deals with a third-party payment system. Most of the other organizations don't have a middleman or have to purchase a service or pay for one. The health care system based on government policies that cause organizations and financial management to lay on other people and letting them make money decisions. Now of days it's easier for health care providers and organization to have a third party involved to help get the payments they need which allow financial management to managed very differently.

Conclusion

Effective healthcare organization environments are known for-profit, not-for-profit, and government agencies. One of the goals that each organization has in mind is to give the best health care quality and services but yet are still different in many other ways. Structure and policies still have to be implemented for all three environments to run smoothly. At the same time, the health care is complexed with systems that are paid through government, third party payers and self-payers. The purpose of starting a business is to financial benefit from if through owners and shareholders. For-profit bases their accounting on incoming that there bring in, not-for-profit focus on income that revues when certain activities happen as for government funded through itself. Each environment has an impact on health care making health care financial management more complexed.

References

Anthem, Inc. (n.d.). Retrieved from http://www.antheminc.com/index.htm

Catholic Charities of California United - Home Page. (n.d.). Retrieved from http://catholiccharitiesca.org/united/index.asp

Non Profit Organization Vs. Profit Organization | Chron.com. (n.d.). Retrieved from http://smallbusiness.chron.com/non-profit-organization-vs-profit-organization-4150.html

U.S. Department of Veterans Affairs. (n.d.). Retrieved from http://www.va.gov

Calabrese, T., Finkler, S. A. & Ward, D. M. (2013) Accounting fundamentals for health care management. (2nd ed.). Sudbury, MA: Jones and Bartlett. Ch.1& 3, 4&5

Gapenski, L. C. (2012) Healthcare finance: An introduction to accounting and financial management. (5th ed.). Chicago, IL: Association of University Programs in Health Administration. Ch.1 & 2, 3&4

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