Reporting Practices and Ethics Paper
Reporting Practices and Ethics Paper Yusara Millan University of Phoenix HCS/405 Kathleen Galuszka November 16, 2010 Reporting Practices and Ethics Paper Reporting Practices and Ethics Paper In the health care environment financial practices and ethical care finance is very important to produce successfully organizations. In the health care industry and in any business ethical and financial practices are adopted to increase the organization value and consumer confident as well as protected the services or products provide by the organization and maintain the organizations brand name.
In the health care industry no patient will want to attend a hospital in which the dead rate is above 50 percentages annually, it will be contradict. In this paper will explain the importance of understanding the financial and ethical practice in the health care industry to avoid fraud and illegal accusations as well as the implementation of the four elements of financial management and the standards of conduct. In the health care industry tough decision are taken every day, the cost of medical services and the economy makes the health care environment challenging for the patients, physicians, policymakers, and society.
The health care organizations have a very valuable program that implement code of ethics and best practice concepts, which is used for the interpretation of company transactions, assets, losses, and other accounts as well as financial reports and statements. Although generally accepted accounting principles is a very good procedure that eliminates mismanagement of accounting systems and procedure, correct abuses, and incorporate regulations, it is not require for a company to have but any organization without this financial measures are require to disclose financial information to investors and other public matter for comparison.
Organizations must comply with federal, state, local, and administrative regulations. According to Ethical Behavior by Companies Benefit Society and Business (June 13, 2009) ethical practices increases patient confidence and improve the organizations performance as well as protects the prestige of the hospital and the good reputation of the staff. Every organization is requires a code of ethics and mechanisms to address risk management and the clear disclosure of financial practices.
Every organization has a compliance code that must fallow according to the Miami Valley Hospital (2010) compliance codes are updated periodically and anyone who does not fallow the Compliance Plan of Conduct can face fatal consequences such as criminal charges or can permanently lose his or her job. Not meeting compliance codes can also affect the organization because can be fine, or face criminal charges losing reputation and prestige. There are four elements of management that helps the organization maintain a control and decision-making of the processes and systems of the hospital.
These are elements that contribute to better choices and the steps to achieve the organization goals. Planning: is the ability to manage the functions of an organization and take decisions that will bring good results in the present and the future, of the organization.
It is the management decision-making of the goals to develop a good organization. Organizing: this is the management function of gathering and coordinating the different systems and departments to function properly and benefit the financial situation of the organization.
Leading: this is the management function that involves the management effort to stimulate the employees and help them perform and make a progress to benefit the patients. Controlling: this is the ability to monitor and follow-up the different systems and procedure to change anything if need it. The four functions of management help the facilities function properly and give the management the opportunity to resolve any issue or obstacle that may present as well as the opportunity to growth and make them better to perform and utilized the resources around them.
Management is responsible for starting and maintaining an effective method of internal control. The budget control is necessary and must be regulate to increase productivity, and assets, a financial report or accounts summary explains in detail and provide records of the planned revenues, and expenditures as well as any current transactions during the accounting cycle. All the organizations have a set of Federal Principles, which determines acceptable cost. Every organization is require to meet the adequate operating needs, therefore cash anagement function helps any organization establish a set of policies and procedures to ensure that federal funds are not withdraw unreasonable from the organization and payments are made properly to the programs (May 1994). According to Ethical Behavior by Companies Benefit Society and Business (June 13, 2009), when applying ethical business practices, says that business should ensure that the production of its services should be environmentally ecological and every human involve in the production should not be dangerous or harmful for them.
Ethical practices involve the strong financial reporting as well as consideration for the social and environmental impact of the business.
Audit reports help the organizations know the financial condition of the company as well as the result of the internal operations. Financial reporting practices of the organization may be control and fix on time, if management checks the financial audit reports often. Financial reports explain in detail how the organization is doing and prevents negative numbers on the company because it records any procedure and activity that happens in the organization (May 1994).
According to American College of Physicians (2010), health care plans and healthcare organization are situating to provide quality care and new practices that will improve quality health care. Financial practices improve the quality care services and must support the ethical professional obligations, which also helps promote the appropriate treatment and services by advertising and letting the community know what is available.
Financial services not only help address any the current problem but to follow up through, improve patient safety and monitor any care inside or outside clinical boundaries.
Financing reporting and ethical standards in health care organizations are very important because each health care organization must apply the best principles of efficiency, fallow code of ethics, preserve the guidelines of the hospital, respect and apply patient confidentiality and privacy as well as patient’s rights and responsibilities.
It is the responsibility of each health care organization to deliver the best health care services, and it can be accomplish by understanding and applying ethical standards and manage financial reporting by checking financial audits often and monitoring the financial activity of the organization to resolve any problem that may put in risk the organization, employees, and patients.
References Maughan, e. What Are the Generally Accepted Accounting Principles? Retrieved 11/13/2010 from http://www. life123. com/career-money/careers/accounting/accounting-principles.
shtml Lloyd, T. (June 13, 2009). Ethical Behavior by Companies Benefit Society and Business. Retrieved 11/13/2010 from http://www. suite101. com/content/ethical-business-practices-a124982 Miami Valley Hospital Premier Health Partners (2010).
Ethics and Compliances. Retrieved 11/13/2010 from http://www. iamivalleyhospital. org/mvhdefault. aspx? id=12746 (May 1994). Basic Elements of an Effective Financial Management System.
Retrieved 11/13/2010 from http://www. dhs. wisconsin. gov/grants/Administration/FMM/BasicElements. pdf American College of Physicians (2010). Ethics in Practice: Managed Care and the Changing Health Care Environment.
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