Running head: HEALTH CARE FINANCE Health Care Finance Richard L Williams HCA 312: Health Care Finance March 19, 2017 Instructor: Kurlyn Monnie-Daniels 1 HEALTH CARE FINANCE 2 Health Care Finance There has been an increasing expenditure by the government on medical services between the years 1960 and 2010. The statistics show the great need of proper financial management in hospitals to enable citizens to enjoy the best health services at the most convenient and affordable prices. The Chief Financial Officer (CFO) is the most senior financial officer in the hospital. He answers to the Chief Executive Officer. It is an important position in the financial system of a hospital, and many decisions concerning the hospital’s funds and money flow are determined by the CFO. The treasurer of a hospital is under the CFO, and two positions would be very viable if included below the treasurer, a bursar and an accounts clerk. These are individuals concerned with the direct handle of inpatient and outpatient financial records together with their accounts. The CFO who is on the Finance Committee Board and Chief Operating Officer (COO) are the positions that would be most directly involved with capital investment decisions. The CFO has the most direct and detailed access to all financial records of a hospital. The hospital’s financial status can at any one point be spelled out by the CFO. The COO also has the detailed outlook of the hospital’s operations regarding labor, inventories, and infrastructure. The CFO and COO would, therefore, be the most appropriate positions from which capital investments can be made. The two positions relate the operations and finance, which are the core determinants in making any financial investment. In a navy military hospital, financial records and accounts are very crucial. Even though the government is the primary financier, the matter of medical cover and insurance policies are HEALTH CARE FINANCE 3 incorporated a lot in record keeping. The managerial outline is not very different from the civilian hospitals and health centers, and there also is significant harmonization of various departments. In a Navy hospital, the CFO is the most senior in the financial department and is liable for all financial accounting activities and records. Most decisions are, however, made in committees and an individual officer can hardly have sole decision-making power. The system is set to make sure there is a liability and, therefore, no misappropriations in money or facilities. A capital investment in a navy hospital would mainly be aimed at increasing the revenue of the hospital to enable the hospital run on least government reliance. A significant capital investment would also lead to better medical services to soldiers and the individuals enrolled in that system. Capital investment would most effectively be drafted by the COO and CFO, at an elementary level. Due to the many procedures and protocols involved in government-related facilities, whatever the COO and CFO draft would have to be taken through several committees and panels for further decision making. Despite the many beauracracies involved in decision making at the Navy hospital, the COO and CFO still stand out as the main players and determinants in both the drafting and implementation of a viable capital investment plan. Health is a major key to a thriving nation without noting the fact that it is a basic need for every individual. In the Navy hospital where I work, matters of health are way important since we are mainly concerned with the health of soldiers. The topic of finance and money is also crucial in health since facilities and labor are required to be able to provide top-notch health services. Proper financial planning and execution in hospitals are critical since it is what determines the efficiency in providing medical services. The senior staff in the management of hospitals has the biggest responsibility of ensuring that financial planning is done well and executed in the most effective way so that inpatients and outpatients get the best medical care. HEALTH CARE FINANCE 4 Reference Gingerich, A. (2014). Financial Management in Healthcare. Hoboken, NJ: John Wiley and Sons.
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