. Describe the important of financial information in healthcare organizations.
Healthcare organizations, just like any other organizations require a strong financial muscle in order to be operated sustainable. Financial information is useful in evaluating the financial performance of the health organization in multiple ways. Firstly, the financial information helps in evaluation of the ability of the hospital to acquire the resources it needs to operate on a day to day basis (Cleverley & Cleverley, 2018). The resources range from drugs, treatment equipment, personnel and support services, among others. Further, it serves as the basis for future planning of the facility. Additionally, some health organizations double as businesses. As a result, the financial information is used to evaluate its profitability. In general, financial information helps in evaluation and planning of operations, making of long-term investment decisions, making financing decisions, and management of working capital.
- List the users of financial information and their uses for it.
Users of financial information include the following:
- Investors: investors rely on financial information to assess viability and hence, decide whether or not to invest. Further, thy use the financial information to tack usage of their investment.
- Government agencies: government agencies such as tax bodies use financial information to determine the organizations obligations as applicable.
- Management: the management relies on financial information to make important decisions.
3 Describe the role of coding information in healthcare organizations in claim generation. Provide an example.
Coding is useful in helping insurance companies to understand the service that a health provider offered to the patient. The coding ensures that the claim covers the procedures performed and why it was performed (Taylor, 2018). For example, a code 37.23 will be interpreted based on the code digits. The first two digits could represent heart and pericardium problems respectively while last two digits would represent the right and left atrium catherization. The pay will use this to discern what was don and why it was done.
Cleverley, W. O., & Cleverley, J. O. (2018). Essentials of health care finance. Burlington, Ma: Jones & Bartlett Learning.
Taylor, R. (2018). The essentials of nursing and healthcare research. Los Angeles, California; London: Sage.