Hcs_405_Reporting_Practices_and_Ethics

Reporting Practices and Ethics By: Due: February 27, 2012 Class: HCS/ 405 Instructor: Diana Schilling Reporting practices and ethics are a part of every business, every organization and every healthcare facility in the country. Good business ethics and good healthcare ethics go hand in hand. Keeping accurate records, being honest with reporting profit, and offering the best quality care possible to the highest extent of care possible, are all part of what makes a good financial management department, and a great healthcare facility. The sad thing is that while it is always good to do the right thing it doesn’t always happen. Misconduct, waste, fraudulent behavior and abuse are things that happen every day in all kinds of businesses. Financial healthcare management includes generally accepted accounting principles, ethics, corporate compliance and fraud. Another important part of financial healthcare management is the four elements of financial management, ethical standards of conduct and financial reporting. Generally Accepted Accounting Principles (GAAP) gives guidelines for several different business practices to be realistic and objective in regards to the financial performance report. Generally accepted accounting principles put limits on chief executive officers as well as creative accounting. The definition of business is very important to understand even down to the smallest degree. Challenge what is believed to be true and accurate, objective is along with fair financial reporting can and may be different in the eyes of each individual. Different methods of depreciation will every time end with a different financial picture result. Accounting policies and procedures need to be developed, to ensure a consistent method of practice is used organization wide, and Nationwide (CBS News, 2011) CBS News reported preventing fraud and abuse as a fall out healthcare industry. Two examples of the governmental efforts to pursue fraud, abuse, waste and noncompliance happened between 1989 and 1994. A couple examples of this fraud pursuit were: A medical lab headquarters located in California committed to paying over 99 million dollars in settlements for cohersing physicians to order tests that were not needed on Medicaid insured patients. This was the largest settlement ever reached between a provider and the government, in a healthcare case. This lab also was ordered to pay a criminal fine of one million dollars as well as reimburse state Medicaid agencies about ten million dollars in fees to cover losses attributed to this malicious conduct. Under the False Claims Act Amendment of 1986, a Pennsylvania hospital agreed to pay penalties and restitution fees of over $200,000 dollars as well as begin an instruction program that lasted for three years, to train employees on proper Medicaid procedures for billing (CBS News, 2011). The healthcare industry is still a fairly new concept, especially the always changing levels inside the industry such as; proof of this is seen in the fact that people are living far longer than ever before. This opens up a different set of issues that healthcare employees have to learn and incorporate when figuring financial reporting and financial management. There are four components of financial management, each part with its separate undertaking. The four components of financial management are: planning, controlling, directing and decision making (Baker & Baker, 2011). In summary: planning requires a financial manager that has the proper skills to recognize the objectives and goals of the organization, as well as the knowledge to take the correct steps to achieve said goals and objectives. To control necessity the manager must have sturdy, up to date reports, along with feedback from prior reports. When the two are compared it can be seen where the organization needs attention due to that area being ineffective (Baker & Baker, 2011). Controlling also makes one assume that there is an order to plans. Directing and organizing is a daily task and is one of the most important components to business management. The finance manager has two parts to his or her job. The organizations resources and how to use them to achieve the desired results, and plans set must be understood, and he or she can direct and ensure effective resource use as well as offer supervision and guidance daily (Baker & Baker, 2011). The major function of making decisions is examination along with assessment of information and data that is compiled from the other three components. Over the years, The Healthcare Financial Management Association (HFMA) has publicized and promoted a very rigorous code of ethics for all healthcare financial managers and workers (Wenheimer, 1994). The code is one that leaves no question or doubt to a manager’s interpretation or intentions as anything other than good for all. This code and the manager’s actions will follow the manager both in professional and personal endeavors for the rest of his or her life. The Healthcare Financial Management Association set examples of standard ethical conduct, which reflects in financial reporting “Stressing the important's of presenting information fairly, striving for individual excellence, maintaining appropriate confidentiality, promoting the understanding of financial management issues and contributing to increase public understanding of financial management issues, all contribute to increasing the public understanding of the health care field” (Weinheimer, 1994) References: Baker, J. J., & Baker, R. W. (2011). Health Care Finance: Basic Tools for Nonfinancial Managers (3rd ed.). Sudbury, MA: Jones & Bartlett CBS News. (2011). The CBS Interactive Business Network. Retrieved from http://www.bnet.com/news-analysis/healthcare Weinheimer, C. (1994). Ethical Conduct More Necessary Than Ever. Healthcare Financial Management. Retrieved from http://www.findarticles.com