The Uniqueness of the Accounting and Finance Sector of the Field of Healthcare - Essay Example

The paper "The Uniqueness of the Accounting and Finance Sector of the Field of Healthcare" is an excellent example of an essay on finance and accounting. The single most surprising or interesting lesson in Healthcare Finance learned throughout the course was the uniqueness of the accounting and finance sector of the field of healthcare. It is true that healthcare practices or services are dominated by not-for-profit corporations that may either be private or governmental. Some of the interesting features of not-for-profit healthcare organizations are that they are charitable and tax exempted. In most cases, not-for-profit healthcare organizations have no owners. As a result, it is important to understand the activities involved in healthcare finance and accounting (Gapenski, 2012). The uniqueness of the healthcare service industry has been very interesting.

For instance, looking at the healthcare service industry, charity and tax exemptions make the finance and accounting activities unique. Therefore, it is important for financial analysts and accountants within the healthcare industry to have an in-depth understanding of the charitable activities and tax exemptions. Given that most healthcare providers are not-for-profit, it becomes tricky and interesting for involved stakeholders to identify how they will raise cash for purposes of meeting the daily operations of the organization besides paying for the expenses. Indeed, these features or characteristics of the healthcare industry make it unique especially with respect to financial and accounting management.

Healthcare services administration is becoming a challenge especially in the contemporary environment where there are many needs of the patients. Nonetheless, most healthcare services are not for profit-making it difficult to raise additional money for growth and expansion, which is apparently some of the core objectives of businesses. Gapenski (2012) confirms that it is important for one to understand planning and budgeting, reporting financial information, making appropriate capital decisions, and then making appropriate financial decisions. In addition, Gapenski (2012) confirms that other aspects of finance and accounting management within the healthcare industry include management of working capital, contract, and financial risk management. These are aspects that have been learned within the course. Therefore, the aspects learned will be employed within the healthcare industry to enhance effectiveness and efficiency.

Nevertheless, various issues relating to financial and accounting management of the healthcare service industry are likely to change within the next two decades. Financial managers within the healthcare industry will have to adapt to these changes, which are likely to be challenged. For instance, many governmental organizations are coming up with health insurance coverage for their citizens and this is likely to affect the functions of financial managers. In addition, financial managers will have to comply with changes in the structure of privately owned healthcare service providers. Within the next two decades, there is a likelihood that most governmental healthcare service providers will have to comply with increased healthcare insurance such as Medicare (Wong, et al., 2000). Other changes that financial managers will have to comply with include changes within the capital structure as well as increased costs of operations and revenue collected despite the fact that there will be no profits.

Costs of operations and capital structures are likely to increase or change given the need for incorporations and inclusion of technological advancements within the healthcare service providers. Contemporarily, healthcare providers are incorporating technological devices in dealing with various forms of diseases and illnesses. Within the next two decades or so, such providers will need more capital structured towards buying of technological equipment (Wong, et al., 2000). Indeed, there are various changes likely to occur within the next two decades.