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Financial Viability In Healthcare Organizations

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Running head: FINANCIAL VIABILITY IN HEALTHCARE ORGANIZATIONS Financial Viability in Healthcare Organizations Name Institution 1 FINANCIAL VIABILITY IN HEALTHCARE ORGANIZATIONS Financial Viability in Healthcare Organizations The economic feasibility of all institutions, especially in healthcare highly depend on the role played by the financial and accounting functions regardless of the type of institution, profit based or service delivery. The specific roles played in the finance and accounting divisions form the foundation of the operational capability of all the other functions in both public and private organizations. In the health sector, however, the role played by accounting function, and finance function is interconnected, and many quarters regard the two roles as similar. In particular, the two roles are distinctive in terms of the objective and scope, but both have similar interconnecting elements. The level of financial viability in healthcare institutions is proportional to the performance of the two monetary based roles. By definition, finance as a distinctive role in organizations alludes all activities aimed at sourcing finances to fund all the operations of the firm and effectively making fiscal decisions about budgeting. Also, the finance role is responsible for financial forecasting depending on the past and present trends in the economy and the healthcare delivery system. On the other hand, accounting related to the organizational activities associated w ...
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