Essay Sample on Flow of Funds in an Organization

Introduction

A fund flow in an organization aims on how cash moves by reflecting the net movement after going through the inflows and outflows of monetary funds. These payments may include the payments made to investors within the company in exchange for goods and services. The inflows and outflows are recognized in the organization as two different variables during a specified period. Cash and cash equivalent are the records the company makes due to its outflows and inflows. Statement of cash flows clearly shows how funds flow within the organization from the operating activities, investing activities, and financing activities. This statement referred above is necessary for reporting changes in net working capital, which is realizable after an organization prepares a fund flow statement (Bays, Breen, & Ofer, 2016).

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The following essay takes a look at how private pay and third-party reimbursement leads to flow of funds in organizations. Private individuals, institutions and the rest of the world are considered as the people involved or contribute to private pay among numerous organizations in the world. Research, therefore, shows that the flow of funds between private customers is decreasing with a movement. This increases bank account based payment systems (Abbey, 2016). Third part reimbursement contributes to the flow of funds since it is a payment for services by an entity other than the patient.

Prevention of Abuses and Inefficiencies

When organizations try to prevent any kind of inefficiency or abuse it become difficult for it since the prevention policies and compliance programs might be costly. Though there are various strategies which need to be implied to prevent these occurrences. In this research, healthcare organizations are the one given much priority in investigating how these prevention policies can be enacted. Offering of education and training of members is one strategy that can be implied while the rest include, use of audits to track compliance adherence which helps to minimize matters, investigated for due to systemic problems and lastly growth and disbursement of written conduct standards and policies promotes a significant decision making to compliance (Dorken, 2018).

There are other strategies which are also deemed effective in ensuring there are no abuses in third-party payments. These strategies are implemented by policymakers using three key laws which include the; federal false claims act, this act is said to have a criminal offense on anyone who knows and submits or causes disapproval of false claims to the state government. The second way is the anti-kickback statute; this target people who intentionally give or get a bribe, directly and indirectly, to encourage corruption through referrals. The last key law is the physician self-referral law; this prevents insurers of payments from getting new customers for certain healthcare programs compensable by state healthcare programs (Dorken, 2016). The government should ensure that those who break the health abuse laws should face exclusion from the state healthcare programs.

Flow of Funds in the Care Organization

According to experts, care organizations have somehow different ways in which the flow of funds is. This becomes much contrary when compared to other organizations since the setup of this organization depends on healthcare. In the United States, for example, the health care organization follows funding in the following manner; funding for clinical care which is said to be with value-based payments in numerous markets. It also involves funding for research; this is even budgeted for by the federal government to enhance competitiveness. It also funds for education which is seen as a mission for evolving with increasing competition for funding. The care organization needs more people to help in the complex challenges faced by them. The funding should be focused on medical schools as students try to strive with education. This can result in more and more clinicians (Abbey, 2016).

Challenges Consumers in Private Insurance

The private payers in the private insurance face many challenges as consumers since research shows how unstable these organizations are financial. This problem does not major on the ways in which consumers can find their preference health plans to fit their needs, but more so on the policies of the cheap care act that have brought results on how customers can behave. There is another challenge which research deems to arise from editorial health affairs; this makes consumers, not to federal tax subsidy with less tight control (Dorken, 2018). Without these tighter controls, the population might be sicker and require more costly care for commercial payers.

In addition to the above, due to costly and tighter controls, the provider is likely to leave the consumers with significant financial losses, and more insurers may consistently or continually leave the health insurance or any private insurance. The other challenge to be discussed is the restrictions which involve lower premiums substantially for older and the sicker customers. These restrictions arise from the law limits on how insurers can change their consumers to reflect their better use of the health insurance services. Research shows that these cases have risen steeply through the public marketplace in the year 2017 thus increasing the premium costs (Bays, Breen, & Ofer, 2016).

When in need of empowering these consumers who have faced the above-discussed challenges, the following are to be considered; listening to customer concerns, this is important since it is through this the insurance or the organization gets a response and makes valuable decisions which might influence the flow of funding effectively. Another point worth noting is giving the consumers a secure experience; this is because consumers need to feel safe at all times. It is also argued that by giving the consumers the right to opt out can empower the customers (Dorken, 2018). This is only applicable when brands may not want to see customers leave for any reason.

Methods of Empowering the Consumer

Furthermore, there are other strategies that can be used to empower the consumer, the notably include, giving them an optimized experience on the channels they want in some of the brands or organizations, they should learn he channels their consumers prefer and make sure they provide consistent support on those channels. On top of that by helping the consumers save time can help to empower them. This is achievable by self-service option which is said to connect customers quickly to the most qualified agents (Bays, Breen, & Ofer, 2016)

Conclusion

In conclusion, it is worth to say the other solutions to the discussed challenges faced by consumers should be implemented. This makes sure that the rise of abuses and inefficiencies are not rising steeply as research earlier shown. The above methods discussed are proof of how consumers can be empowered. This essay, therefore, tries to sum up by arguing that other strategies can be used to enhance the effectiveness of the flow of funds among private pay and third-party reimbursement (Abbey, 2016). Although there are some challenges faced people should take caution on the few since they may breed to numerous challenges.

References

Abbey, D. C. (2016). Healthcare Payment Systems: Fee Schedule Payment Systems. Boca Raton, FL: CRC Press.

Bays, K. D., Breen, W. J., & Ofer, A. R. (2016). Financial Management Under Third Party Reimbursement.

Dorken, H. (2018). Health Insurance and Third-Party Reimbursement. The Professional Psychologist's Handbook, 249-284. doi:10.1007/978-1-4899-1025-7_10