Health Management and Financial Statements Describe the Essay

Open, View, and/or
Download this Document

Total Length: 558 words ( 2 double-spaced pages)

Total Sources: 2

Page 1 of 2

Health Management and Financial Statements

Describe the four basic financial statements. What are some ways in which accounting for health care organizations (HCOs), especially not-for-profit (NFP) ones, tends to differ from accounting in other industries?

According to the textbook Essentials of Health Care Finance, "the primary outputs of financial accounting are four financial statements that detail the organization's current financial position and how the organization reached that position over some period of time (usually 1 year)" (Cleverley, Song & Cleverley, 2012). These four financial statements are 1.) Balance Sheet, 2.) Statement of Operations (or income statement or statement of revenues and expenses), 3.) Statement of Cash Flows, and 4.) Statement of Changes in Net Assets (or statement of changes in net assets). Health care organizations (HCOs) utilize each of these four financial statements under guidelines known as the Generally Accepted Accounting Principles (GAAP) to ensure an accurate financial accounting of their operation takes place on an annual, semi-annual, and quarterly basis.

Stuck Writing Your "Health Management and Financial Statements Describe The" Essay?

View All Our Example Health Management and Financial Statements Describe the Essay

Have A Custom Example Essay Written



While the body of rules and regulations in GAAP govern the four financial statements, HCOs and other providers of health care services, including not-for-profit (NFP) institutions, must be aware that financial accounting within the health care and medical industries can become incredibly complex. The fundamental difference between HCOs and typical businesses engaged in commercial activity is that most businesses have just a single type of payment -- billed charges -- while "in contrast, the typical healthcare firm may have several hundred different contractual relationships with payers, which specify different rates of payment for an identical basket of services" (Cleverley, Song & Cleverley, 2012). When the convoluted nature of the nation's current health insurance system is taken into account,….....

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Health Management And Financial Statements Describe The" (2013, September 18) Retrieved May 14, 2025, from
https://www.aceyourpaper.com/essays/health-management-financial-statements-describe-96639

Latest MLA Format (8th edition)

Copy Reference
"Health Management And Financial Statements Describe The" 18 September 2013. Web.14 May. 2025. <
https://www.aceyourpaper.com/essays/health-management-financial-statements-describe-96639>

Latest Chicago Format (16th edition)

Copy Reference
"Health Management And Financial Statements Describe The", 18 September 2013, Accessed.14 May. 2025,
https://www.aceyourpaper.com/essays/health-management-financial-statements-describe-96639
   

Open, View, and/or
Download this Document
order custom essay example