Running Head: FINANCIAL STATEMENT
Financial information is diverse and it is what management uses to make decisions and
steer operating activities towards financial goals. Financial information is important in health care
organizations since it enables efficient management of money and risks in a way that helps the
organization achieve financial goals. Financial information helps health care organization to have
strong and organized financial management plan which enables them provide efficient health care
to patients. Financial statements provide financial information which is significant in ensuring that
all financial operating activities in health care organizations are efficiently carried out. Financial
statements are neutral and they present an accurate picture of activities of the healthcare
organization over a period of time. The most known financial statements comprise of the balance
sheet, income statement and the cash-flow statement. In this paper, we will be discussing ways in
which financial information is used in healthcare organizations and evaluating the use of financial
statement analysis as a method to address financial issues in health care.
All organizations heavily rely on financial information to ensure tha...