Reporting Practices and Ethics Paper Free Essays

Planning is when the financial manager identifies the steps that must be taken to accomplish the organization’s objectives. The purpose is to identify objectives and then to identify the steps required for accomplishing these objectives. Controlling is when the financial manager makes sure that each area of the organization is following the plans that have been established. We will write a custom essay sample on Reporting Practices and Ethics Paper or any similar topic only for you Order Now The purpose of controlling is to ensure that plans are being followed. Organizing is when the financial manager decides how to use the resources of the organization to most effectively carry out the plans that have been established. Directing is when the manager works on a day-to-day basis to keep the results of the organizing running efficiently. The purpose is to ensure effective resource use and provide daily supervision. Decision making is when the financial manger makes choices among available alternatives. Decision making actually occurs parallel to planning, organizing, and controlling. All types of decision making rely on information, and the primary tasks are analysis and evaluation. The purpose is to make informed choices (Baker and Baker, 2001). Summary of generally accepted accounting principles and general financial ethical standards Most healthcare organizations operate on the accrual accounting basis. With this type of accounting; revenue is recorded when it is earned-not when payment is received; and expenses are recorded when they are incurred-not when they are paid. Ethical decision making is required when the healthcare executive must balance the needs and interests of the individual, the organization and society. Those involved in the decision making process must consider ethical principles such as justice, autonomy, beneficence and fairness, as well as professional ethical standards and codes. Physicians, nurses, and other caregivers may primarily address ethical issues on a case-by-case basis. Healthcare executives also have a responsibility to address those issues at broader organization, community, and social levels ACHE, 2007). Examples from articles that reflect ethical standards of conduct and financial reporting practices. Explain significance of each example. In May 2004, Larry J. Tyler wrote in an article that financial managers need to keep their own personal finances in order. If a financial manager is living too close to the edge on his/her own finances or are in fear of losing their job, and then they are more likely to â€Å"be nd† their convictions (Tyler, 2004). The importance of this example is so financial managers do not â€Å"fix† the books to make the organization look better than it actually is. If someone thinks that their job is on the line, they are more likely to do what others want them to do as well. In an article written by Joe Batte, a healthcare compliance specialist, he reported that state and federal agencies are increasing their efforts to eliminate fraud and abuse in healthcare. Batte defines fraud as: Knowingly and willfully executing or attempting to execute, a scheme or artifice to defraud any health care benefit program. Or to obtain, by means of false or fraudulent pretenses, representations or promises, any of the money or property owned by, or under the custody of, or control of, any health care benefit program. Batte defines abuse as: Abuse is defined as receiving payment for items and service when there is no legal entitlement for that payment and the provider has not knowingly or intentionally misrepresented the facts to obtain payment. Abuse may, directly or indirectly, result in unnecessary costs to the Medicare or Medicaid programs for services which fail to meet recognized standards of care, or that are medically unnecessary. Whether it’s abuse or fraud, the fact that a provider can lose everything through being excluded from state and Federal health care program’s participation makes it imperative to run the providers company in a professional, compliant, and business-like fashion. It is also wise to know what is currently being done by the agencies that oversee our health care systems (Batte, Joseph R. 2001). In the articles above, knowledge of what can happen to someone, or the organization as a whole, will deter managers of falsifying financial reports. Education is key to any position, whether healthcare or another. Knowledge of the consequences will help keep managers on the straightened arrow. Conclusion It is incumbent upon healthcare executives to lead in a manner that sets an ethical tone for their organizations. Education in ethics is an important step in healthcare’s executives’ life-long commitment to high ethical conduct, both personally and professionally. In today’s more aggressive enforcement environment it pays to have an active compliance program in effect, make sure that documentation is complete and legible, and don’t assume that the small or medium sized provider is not going to be reviewed on a regular basis. The medical industry is held to a higher standard of ethics and many of the overseeing agencies are now using their considerable arsenal to make sure that fraud and abuse reduction is on everyone’s front burner. How to cite Reporting Practices and Ethics Paper, Papers Reporting Practices and Ethics Paper Free Essays Financial management of health care organizations can be a complex challenge for health care managers, from the basic elements of financial management to the heavy burdens of ethical compliance and accuracy. In this paper the subject to discuss is financial reporting practices and ethical standards in health care, how health care reform is changing and making these organizations more accountable, and summaries of generally acceptable accounting principles and general financial ethical standards. Financial Management There are four recognized elements of financial management: (1) planning, (2) controlling, (3) organizing and directing, and (4) decision making. We will write a custom essay sample on Reporting Practices and Ethics Paper or any similar topic only for you Order Now The four divisions are based on the purpose of each task†. (p. 5) (Baker Baker, 2011) These elements help to make the manager’s choices informed and effective. When looking at each element individually, the first one is planning; a manager must identify what steps and tasks need to be accomplished for the organization, he or she may ask what the next step is or what the procedures are. Next, controlling is making certain that a plan is in place and followed in each area of the organization. Organizing staff and identifying the right skills with the right employees, making certain that plans are followed. Study financial reports and keeping past reports to compare the reports to ensure that the reporting lines are clear. The third element is organizing and directing, deciding what resources are most effective and how to use those resources. The purpose is to run the organization smoothly, effectively and that comes with daily supervision of all the elements described so far. The last element of financial management is decision making. Managers make choices among the available information and alternatives given in the reports, logs, tracking made. All his or her decisions rely on this information; this is why it is imperative to have clear and accurate reporting. General Accepted Accounting Principles The General Accepted Accounting Principles (GAAP) are defined by the Federal Accounting Standards Advisory Board as â€Å"standards, conventions and rules accountants follow in recording and summarizing transactions, and in preparing financial statements†. (Federal Accounting Standards Advisory Board, 2011) This gives the guidelines for consistent reporting of transactions. Recent changes in our health care reform laws are changing the manner in which health care organizations are reporting finances. â€Å"Overall, health care-related items are going to become reportable within one or more financial categories. And that means companies will need to have controls and policies in place around that health care data. Whether companies store it in a human resources application or in a financials package, they need to consolidate that information and put the controls in place to ensure its integrity†. (Capobianco, 2010) Financial reporting is already a well documented in most organizations, however these new reform laws are making the reporting not only a priority but also a necessity and accuracy a must. â€Å"It may be cheaper to pay the fines; however, that may not be the best business position to take†. General Financial Ethical Standards A simple definition of financial ethical standards is the accuracy of books and records, disclosures of reports and filings, and safeguarding personal and confidential information in compliance with regulations and laws. In recent years it seems the line between unethical and ethical standards becomes gray or blurry; however it is a black and white issue. To omit information or make something more or less than the numbers show it to be is unethical. With financial reporting the manager has a duty to his or her employees to disclose the information to staff and staff to his or her manager. â€Å"The employer has an ethical obligation to the employee to provide and publicize a safe and convenient mechanism for reporting violations or irregularities that raise compliance concerns. An effective corporate compliance program, with appropriate communication channels to facilitate employee reporting and a mechanism to ensure the employer’s response to an employee’s concerns, can be critical to fulfilling this obligation†. Conclusion Managers are the key to the essentials of finances in health care organizations. Attention to detail from the staff to the reports can make monumental changes in the direction of the organization. In past decades, organizations have made the news over and over again because management was ineffective, unorganized, and even unethical. A managers’ goal is to command control over effective resources and allocate those by making decisions that are clear. How to cite Reporting Practices and Ethics Paper, Essay examples