Healthcare Financial Management

Healthcare Financial Management

Introduction

Financial statements are an integral part of every organization. These statements comprise of different components that are inter related with each other. Together they represent the true financial position of the organization. Financial management and financial statements also play a significant role in the healthcare settings. These represent the organizational performance and help in managing the financial issues and matters. In this paper, we have selected Northeast Georgia Medical Center for analyzing the relationship between different components of financial statements. Further, we will be discussing the issues in health financial management.

Discussion

There are three basic elements of financial statements. These are:

Income Statement

Balance Sheet

Cash flow Statement

Financial statements are documents or reports that provide insight into the financial situation of a company, the resources are there, the results achieved, profitability has generated, the cash inflows and outflows that has, among other financial thereof.

Whether the case of managers, administrators, investors, shareholders, partners, suppliers, banks, brokers, or government entities, financial statements allow information according to your needs, analyze it and, based on that analysis, make decisions.

The financial statements usually have the same structure in all companies because they follow accepted accounting principles and standards worldwide, but some of their items may vary depending on the company, but generally are similar enough to allow, For example, compare the performance of a company to another.

The Income Statement

Also known as a profit and loss statement, the income statement shows the actual income, expenses and profit or loss a company has generated over a period of time.

This allows us to know what were the revenues, expenses and profit or loss generated by the company, analyze this information (for example, to know if you are generating enough income, if you're spending too much, if you are generating profits, if you're spending more than it earns, etc.), and, ...