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Accounting in Healthcare Management.

Section I

Accounting in the healthcare management has played a big role in changing the

healthcare industry. Over the last century, operational costs in health care have risen at a faster

rate compared to consumer index. Hence the need to understand how accounting in the health

care management has assisted in cost cutting and improved quality of management (Meltzer, &

David 40). Accounting in healthcare management is an important task as they assist managers to

maintain efficiency in the rates of consumption within the health care environment. It is also

necessary in ensuring effective flowing of patients in the operating rooms and other fields.

Generally Accepted Accounting Principles (GAAPS) are the set of principles used by the

department to compile financial statements.

The department accounting in health care management offers a wide range of majors

including internal auditors, bookkeepers, and financial managers. Those taking a course on

bookkeeping only need a high school diploma or associate’s degree. The financial managers and

internal auditors have a minimum requirement of a bachelor’s according to Mason

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https://catalog.gmu.edu/colleges-schools/health-human-services/health-administration-

policy/health-administration-bs/#requirementstext.

The future job market of the department has been growing on a daily basis. According to

U.S Bureau of Labor Statistics, the job market has prospects of growing with a margin of around

11% between 2014 and 2024. According to Monster.com, there is an indication of a high job

market in the department, with over 1000 jobs to searches to show. As per Mason’s career,

accounting in healthcare management is a growing industry, with employment in hospitals, state,

offices of health practitioners improving with million jobs targeted in the future.

Dr. Rafael Grossman was the first practitioner to use Google Glasses while performing

surgeries. The wearable technology improves the better needs of the users, and the providers of

healthcare continue to be positive that the application of the technology will have a positive

influence experience of the patients and practitioners to better receive and help in administering

care. Being one among many scholars, his impact is wide as he has helped the accounting

department to be effective in lowering cost while delivering quality services. Nicholas Bloom, a

scholar researched on healthy business and management in healthcare by investigating on the

link between hospital performance and management. It involved collection a large database of

management and figured out the skills necessary in hospitals.

http://www.hbs.edu/faculty/Pages/item.aspx?num=53281.

The first research is by Ross Baker on the contribution on how to improve quality care.

The research was aimed to improve implementation of an effective practice and enhancement in

value and patient safety (Hopwood, Anthony 67). The research offer methods the knowledge of a

firm and microsystem for enhancing care and coming up with tools to assist in the improvement
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strategy. The second research on narrow networks on the health insurance marketplaces was

conducted to find out the cost and prices of delivering healthcare to patients. It goes hand in hand

with accounting which targets to minimize cost.

Technology and connectivity continue to be an issue in accounting in healthcare

management. Adopting of new technology aids the practitioners reduce cybersecurity. Improved

technology assist the practitioners better manage and come up with appropriate data management

system (Covaleski, Mark, Mark Dirsmith, and Jeffrey Michelman 70). Databases are also

becoming as issue since new databases are important for easily-structured information unlike

physical notes which are not easily accessed and analyzed.

Section II

Accountants in the healthcare management conduct financial functions which include

collecting, recording accurately, analyzing and presentation of operations in a healthcare setting.

Practitioners in accounting in healthcare management prepare financial statements to periodically

give an insight on the health of the hospital or such a setup (Stice, Earl, and James 90). A report

is written hand-in-hand, translating the accounting information into a format that can easily be

understood. The financial reports either discuss the financial results of given departments or the

operations as a whole. For a new theory to be accepted, a report on the financial statement is

necessary as it highlight on the financial information and help an individual understand the

reasons behind the results. Correlations are drawn and professional advice is offered by the
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accountant about what the results imply to the organization. The report should be well presented,

researched, and explained for the theory to be accepted.

Section III

The Publication on Management Accounting in Healtcare published by Michael Bourn,

Charles Sutcliffe is a collection of papers on accounting in healthcare management. The journal

covers two themes which are measurement of cost and analysis, and data management to ensure

effective accountancy in the organization. This publication covers a number of subjects which

include managerial accounting, medical care, and managerial accounting. The second publication

on Intermediate Accounting published by Donald Kieso, Jerry Weygandt, and Terry Warfield

explains the standards which all the other intermediate accounting texts are measured. It covers

the subject on accounting.

The practitioners in healthcare monument accounting may join associations such as

Healthcare Financial Management Association to help them change the world of healthcare

finance. The association provide publications such as Voices Healthcare Finance.

Conclusion

An accounting department within the medical office plays a crucial role. It acts as the

backbone of the firm, allowing it to function at its full potential. An accounting department is

therefore necessary for the organization to run in a cost-effective manner. Key elements are
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recognized which include planning, controlling, directing, and organizing that are essential in

accounting in healthcare management to achieve required goals.

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Work Cited

Stice, Earl K., and James D. Stice. Intermediate accounting. Cengage Learning, 2013.
https://books.google.co.ke/books?
hl=en&lr=&id=ldIWAAAAQBAJ&oi=fnd&pg=PP7&dq=Intermediate+Accounting&ots=BDW
umFUoaM&sig=GirVa50pJxhua4j_7py8ZXfHc7s&redir_esc=y#v=onepage&q=Intermediate
%20Accounting&f=false

Meltzer, David. "Accounting for future costs in medical cost-effectiveness analysis." Journal of

health economics 16.1 (1997): 33-64.
http://www.sciencedirect.com/science/article/pii/S0167629696005073

Covaleski, Mark A., Mark W. Dirsmith, and Jeffrey E. Michelman. "An institutional theory
perspective on the DRG framework, case-mix accounting systems and health-care
organizations." Accounting, Organizations and Society 18.1 (1993): 65-80.
http://www.sciencedirect.com/science/article/pii/0361368293900252

Hopwood, Anthony G. "Accounting and organisation change." Accounting, Auditing &

Accountability Journal 3.1 (1990).
http://www.emeraldinsight.com/doi/abs/10.1108/09513579010145073