Essay Example on Fair & Accurate Financial Reporting: Key Role in Healthcare Industry

Fair and accurate financial reporting plays key roles in the healthcare industry. Enhancement of decision making is one of the significances of fair and accurate financial reporting in the healthcare industry in that it enables the healthcare staff to come together and make reliable decisions concerning what is required in the organization. Also, through the process of decision, accuracy is attained because there is sharing of new ideas between the healthcare staff, thus leading to the attainment of a common goal. Moreover, fair and accurate financial reporting is an essential tool, especially when it comes to planning, therefore leading to the smooth running of the healthcare organization.

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Also, fair and accurate financial reporting is significant in the healthcare industry because it is a way of identifying the general performances of the organization (Morgan, Ensor, & Waters, 2016). This can be seen whereby financial reporting aid in tracking the performances of the healthcare organization through the comparison of the previous performance with the current performance so that the healthcare organization can identify some of the areas that need improvements with the main purpose of ensuring patients safety (Abolhallaje, et, al, 2013). Furthermore, the other significance of fair and accurate financial reporting in the healthcare industry is that it helps in the determination of organizational progress thus enabling the healthcare industry to identify their strengths and weaknesses and thereafter helping to achieve patient’s safety ( Phadermrod, Crowder, & Wills, 2019).

The other importance of fair and accurate financial reporting is that it helps to determine how various resources were used by the healthcare industry to avoid misuse of the resources. Also, fair and accurate financial reporting is useful when it comes to the healthcare industry because it helps the organization to properly allocate the available resources, thus ensuring patients' safety. Fair and accurate financial reporting helps in monitoring patient’s healthcare hence leading to adequate caring by those who are in charge of the healthcare organization. It also assists in the elimination of the unnecessary costs that might be present in the healthcare organization, therefore, helping to prioritize patient’s safety.

The essence of fair and accurate financial reporting in the healthcare industry is because it usually aids the organization in future prediction (Holmes, Kaufman, & Pink, 2017). As a result of future prediction of how the healthcare organization would look like in terms of provision of its services, the healthcare industry would, therefore, look for some of the strategies that can be incorporated into the organization with the aim of attaining organizational success.

References

Abolhallaje, M., Ramezanian, M., Abolhasani, N., Salarian Zade, H., Hamidi, H., & Bastani, P. (2013). Iranian health financing system: challenges and opportunities. World Appl Sci J, 22(5), 662-666.

Holmes, G. M., Kaufman, B. G., & Pink, G. H. (2017). Predicting financial distress and closure in rural hospitals. The Journal of Rural Health, 33(3), 239-249.

Morgan, R., Ensor, T., & Waters, H. (2016). Performance of private-sector health care: implications for universal health coverage. The Lancet, 388(10044), 606-612.

Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-performance analysis based SWOT analysis. International Journal of Information Management, 44, 194-203.