Reported & Presented by: Raiza J. Majid , Amina M. Bahjin, Jhean A. Natividad
Professor: Prof. Leila D. Benito, RN,MN
Learning Outcomes: At the end of the class discussion, the post-graduate student can:
Differentiate and classify the different structure of health care facility (its vision, mission, goals and objectives)
Define and discuss the levels of management.
Enunciate importance of financial management
CONTENT
WHAT IS HEALTH CARE?
Health care is the field concerned with the maintenance or restoration of the health of the body or mind.
DO I REALLY NEED TO UNDESTAND ACCOUNTING AND FINANCINAL MANAGEMENT?
To be successful healthcare managers, regardless of specialized area within a healthcare organization they lead, one must have a firm understanding of accounting and financial management.
WHAT IS THE DIFFERENCE BETWEEN “ACCOUNTING & FINANCIAL MANAGEMENT”?
First and foremost, financial management is a decision science. Financial management provides the theory, concepts, and tools necessary to make better decisions. Whereas accounting provides decision makers with a rational means by which to budget for and measure a business’s financial performance.
WHAT IS FINANCIAL MANAGEMENT?
Financial management can now be defined as strategizing the organization’s financial direction as well as the performance of its day-to-day financial operations. Therefore, financial management has a dual purpose. The first is to determine the strategic financial direction of the organization. The second purpose is management of day-to-day financial operations.
“Financial management tools and techniques can aid management in providing the community with quality services at least cost by furnishing the data that are necessary for making intelligent capital investment decisions, by guiding the operations of certain hospital subsystems, and by providing the systems and data needed to monitor and control operations” (Berman, Weeks &Kukla, p. 4., 1994)
WHAT ARE THE GOALS OF THE FINANCIAL MANAGER IN A HEALTHCARE ORGANIZATION?
Profitability – maximization of wealth or simple maximization of organization’s profits; A trade-off always exist between
maximization of expected profits and the acceptable level of risks. Undertaking risks requires greater
returns,
Viability - A trade-off always exist between “Profitability” versus “Viability”. Greater liquidity results to lower risks andlower profits.
a) Liquidity – is a measure of the amount of resource and organization has that are cash or are convertible to
cash in the near-term to meet the organization’s obligations.
b) Solvency – the same concept with “Viability” but for a long- term. Concerned with the generation of cash
in future years of business.
TWO GENERAL TYPES OF ORGANIZATIONS:
In the FOR-PROFIT WORLD, “management must administer the assets of the enterprise in order to obtain the greatest wealth for the owner” (Berman, Weeks, and Kukla, 1994, p. 4). Therefore, management’s goal is to find the combination of earnings and risk associated with producing those earnings that yields the highest possible value.
In the NOT-FOR-PROFIT WORLD, earnings or profits are called margin. Not-for-profit health care providers place a somewhat greater emphasis on social goals than for-profit providers, but in the end, management’s success or failure—as defined by each organization’s board of directors— is primarily related to the quality of its bottom line.
ROLE OF FINANCIAL MANAGEMENT AND NURSE LEADERSHIP IN HEALTHCARE ORGANIZATION
LEVELS OF MANAGEMENT:
TOP MANAGERS
Looks At the organization as a whole
Coordinating internal and external influences
Make decisions with few guidelines or structures
They are the one who have the most authority
Responsibilities include determining the organizational philosophy, setting, policy and creating goals and priorities for resource allocation.
Ultimately responsible for the entire organization.
They verse the overall planning for the organization, work with the middle managers in implementing and planning and maintain overall control over the progress of the organization.
MIDDLE MANAGERS
Coordinates the lower levels of the hierarchy and are the conduit between lower and top-level managers.
They carry out day-to-day operations but are still involved in the long-term planning and in establishing unit policies
Directly supervises other magers below them.
They plan, allocate resources to meet objectives and coordinate and link groups departments and divisions within the company.
Mainly responsible for implementing overall organization plans so that organizational goals are achieved as expected.
FIRST LEVEL MANAGERS
Concerned with their specific unit’s work flow.
Deal with immediate problems in the unit’s daily operations, with organizational needs, and with personal needs of the employees.
With the least authority.
Manage the work of non-managerial individuals who are involved with the production or creation of the organization’s products or sevice.
Directly responsible for the work of operating non-managerial employees.
