Module 1 - Case - Health Care Financial Environment - Essay Example

Health Care Financial Environment Health Care Financial Environment Establishing the role of a chief financial officer (CFO) in termsof hierarchy of the health care organizational charts is important because it streamlines responsibilities. The responsibilities are vital in the control of organizations cash flow and overseeing of financial planning (Burtrie et al., 2013). As the essay will explain, CFOs mentioned a lot of financial management activities that include long-term investment decisions, contract management and evaluation and planning, but the latter dominates the rest.

Evaluation and planning is a part of financial management activities that preoccupies the role and responsibilities of CFOs during the roundtable talks. Therefore, evaluation means conducting of assessment of perceived outcomes that are often measurable through standardized performances and regulations. It means an evaluation plan helps in achieving goals and objectives that are critical in enforcing the mission statements of a particular hospital environment (Speizman, 2009). Additionally, improvement of efficiency and effectiveness becomes of part of evaluation when CFOs examine the long-term investment decisions important for strengthening contract management.

Planning, on the other hand, implies that CFOs must identify a project plan that is both feasible and operational in different environments. Accordingly, planning helps in the deconstruction of perceptions to convert them into reality when evaluating goals that need immediate implementation (Tolbert et al., 2010). It means all investment decisions are strategic because they serve certain purposes approved by CFOs in their quest to streamline the overall management (Burtrie et al., 2013). In other words, planning is a part of partnership with other management processes such as evaluation to assist in controlling of organizations cash flows and other pressing needs.

ReferencesBurtrie, A. M et al. (2013). ‘Laying the Groundwork for Value-Based Payment.’ Healthcare Financial Management, 67(2), 1-4.Speizman, R. A. (2009). ‘Tax-exempt status for hospitals: Where have we been and where are we going?’ Healthcare Financial Management, 63(2), 62-66.Tolbert, S. et al. (2010). ‘Not-for-profit organizations and for-profit businesses: Perceptions and reality.’ Journal of Business & Economics Research, 8(5), 141-153.