QUESTIONS AND ANSWERS Essay Example
Future trends in health care finance technology in physician ordering and integrated medical records
Aging populaces with intricate health conditions like chronic diseases and obesity place an increasing burden on the primary healthcare systems in several countries. While demand shoots up, health human resource supply is declining as United States health labor force retires earlier and the average age of the remaining productive populace goes up. Higher training requirements, certification requirements, tuition fees are resulting to a decline in the principal care physician workforce. The adoption of health information technology is viewed as the only way of addressing the enlarging healthcare supply and demand gap. Health information technology such as the electronic medical record which is a computerized health information scheme that records detailed encounter information like encounter summaries, patient demographics, allergies, medical history, lab test histories and intolerances is likely to improve patient safety, promote physician office effectiveness and alleviate deficiencies in health human resources( Shurling, & Geisler, 2009).
Recently, the significance of technological advances has turned out to be the forerunner in refurbishing medical systems. Shurling, & Geisler, (2009), notes that shorter hospital stays, high costs, and a reduction in hospital staff have resulted to a demand new ways through which information can be conveyed to those who require it most. The key for schemes integration lies within the medical record. In spite of the obvious need for novel record keeping paradigm, several organizations have found it challenging to make an effort to move to a paperless globe. Organizations provide medical record software packages, but they are restrained in their capabilities and rarely seem to meet the complete needs defined within health care organizations. The record scheme should make it simple to access and display required data, to examine them and share them amid coworkers and with secondary users of the record.
How financial managers can budget for unforeseen changes and improvements in information technology that require large capital outlays
Financial managers can budget for unforeseen changes through financial accounting. A healthcare financial system is composed of four segments which are the original records, the information system, the accounting system and reporting system. The original records will help financial managers to will offer evidence that some event has happened in the information technology, while the information system will gather this evidence. The accounting scheme will record the evidence while the reporting scheme will generate reports of the effect. Because the unforeseen changes will require large financial outlays the managers will still be supposed to have an idea on the amount of money to set aside. For instance the managers can look at historical data for this form of outlays in order to have a stronger grasp of what might happen in the future(Baker, & Baker, 2011).
Additionally, since health care facilities are not for profit organizations, financial managers can factor in lead time grant requests into budgetary planning process. Baker, & Baker(2011) argues that the financial managers can prepare the budget to make sure that there are sufficient finances for programs slated to be run over duration longer than the average budget cycle. Once adopted, the budget can be utilized by the staff as the management tool to measure operational performance. If the budget is effective, it will establish a criterion that will signal management if a change is required or if a course of action will be altered or refined. A budget that is updated for novel situations improves its value as a monitoring scheme and as unforeseen changes occur, the budget is tailored to respond to these changes.
Why the time value of money is important in capital decision making
According to Louderback, (2006), the time value of money is a financial model that accounts for the disparity in value a particular quantity of money has based on the period involved in losing or gaining it. The time value for money is vital in decision making procedure of capital budgeting. Both businesses and individuals utilize time value of money to determine the way to plan for and bring about prospect economic growth. In several situations, analysis of investment opportunities requires the utilization of time value for money calculations. The present and future values of money are important in capital budgeting because budgeting requires business and individuals to decide the way to invest or allocate money.
By choosing to place cash into an investment, a business or an individual will be deny themselves the utilization of that cash until investment pays off. If the value of investment at maturity surpasses the estimated future worth of the principal of investment, this is a good choice, but if the future worth of the cash surpasses the worth of the investment, it may be wise to select another investment or store the money in cash. As a model, the time value for money offers a means of analyzing the opportunity costs of decisions on capital budgeting. Utilization of time value for money enhances these decisions to occur with excellent understanding of whether or not a certain choice in allotting cash is worse or better than other available options (Louderback, 2006).
Baker, J. J., & Baker, R. W. (2011). Health care finance: Basic tools for nonfinancial managers 3rd ed. Sudbury, MA: Jones & Bartlett Publishers.
Shurling, R., & Geisler, E., (2009), Technology, health care, and management in the hospital of the future. New York: Greenwood publishing Group.
Louderback, J., (2006). Managerial accounting. Pennsylvania: Pennsylvania State University.
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