Revenue Function - Assignment Example

Revenue Function and Complexity Healthcare organizations Non-profit organizations have always played a very crucial role in building up a society andthe welfare of the people of that community. People expect non-profit organizations to work for their safety and security. Non-profit health care organizations, serve the community with their health services and all the revenues generated are re-invested for the benefit of the people being served. The revenue functions, however, is difficult to determine for the non-profit healthcare organizations as compared to the profit organizations.

The complexity of revenue functioning is mainly due to the absence of tangible commodity in non-profit healthcare organization. It is almost impossible to obtain accurate and reliable financial figures for the intangible services being provided (Cleverly,Song , &Cleverly,2011).According to Brown (2012) in Encyclopedia for Business ,the external revenue generation of not-for profit organizations adds to the complexity. These organizations rely on funds from other external sources, which is a challenge itself since there is no incentive for the contributors.

The role of the largest client of healthcare organizations, that is government, makes the whole process even more complex due to the complex payment system. For the successful running of HCO understanding of policies, rules and procedures is of utmost importance(Cleverly,Song , &Cleverly,2011).The integral part of economy of any country is composed of Non-profit organizations because of its valuable services. Unaffordable services are made available and approachable through these organizations.

This increases the pressure on such organizations to fill the discrepancies which result in the complexity of the revenue functions. Just like profit organizations such not for profit organizations are also a business and the requirements for revenues has to be met for effective functioning of the organization.WORD COUNT: 265CITATIONS: Cleverly, W. O., & Song, P. H. & Clevrly,J.O. (2011).Financial Envoirenment of Healthcare Organizations.Essentials Of Healthcare Finance(7th Ed.). Retrieved from http://books.google.com.pk/books?id=iIu17ZUMwd0C&pg=PA51&lpg=PA51&dq=revenue+function+of+a+healthcare+organization&source=bl&ots=6f2qjFlJAU&sig=2KkHynzqFUC3MWjHS20_BZ7JL3Q&hl=en&sa=X&ei=dREEULajMMjptQa714HTBg&sqi=2&ved=0CE4Q6AEwAA&fb_source=message#v=onepage&q=revenue%20function%20of%20a%20healthcare%20organization&f=falseBrown,K.L. (2nd Ed.). In Encyclopedia of Business.

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