DHA 8007 Discussion 2 Week 1

DHA 8007 Discussion 2 Week 1 Week 1 Discussion 2 The four components of financial management are planning, controlling, organising, directing money, and decision-making. It is founded on forecasting the future financial needs and the formulation of a financial scheme for the organisation. One of the methods of monitoring and reporting to the established financial plan is the process of controlling so that the activities of the organisation can be in line with the established financial plan. Organising and directing is the strategy of organising the financial structure, how to use the financial resources most efficiently, and the way to manage the daily running of these operations. Finally, financial data is applied to decide between the alternatives presented to the organisation to make sure that the financial outcomes correspond to the objectives of the whole organisation (Ross, 2023a). Financial health of organisations in a healthcare environment entails financial management since it allows a healthcare environment organisation to persist in the process of providing quality care. As the nature of the regulations varies constantly, as well as the models of reimbursement and the necessity to be efficient, financial management can assist healthcare administrators to make their way in a complex environment. Financial management would allow them to make practical decisions in terms of resource distribution, budget control, and investments in technologies or services that would enhance the care of patients (Ross, 2023b). Besides, it becomes even more critical in the context of value-based reimbursement as the reimbursement of the hospitals is given based on the performance of the work and the quality of provided services and not on the number of offered services. It can help administrators balance between costs and patient outcomes improvement to meet the value-based care requirements, thereby becoming more efficient and profitable (Homauni et al., 2023). The hospital value-based purchasing (VBP) Program is one of the aspects of the change to value-based care in the United States. Centres for Medicare and Medicaid Services (CMS) have devised this program to reward or penalize hospitals according to their performance on some quality measures such as clinical outcomes, patient safety, and patient experiences (Ross, 2023b). Hospitals under the VBP Program are motivated to advance in their quality of services as a part of their payment is dependent on their capability to meet or surpass their performance levels. This offers motivation to the hospitals to minimise costs and offer quality care to achieve increased patient satisfaction and health improvement (Bhati et al., 2023). The administrators have to attend to the money, especially in value-based reimbursement, which will help to balance the cost and quality of care. The trend towards the improvement of patient outcomes and financial sustainability is still being heightened by such programs as hospital value-based purchasing. References Bhati, D., Deogade, M. S., & Kanyal, D. (2023). Improving patient outcomes through effective hospital administration: A comprehensive review. Cureus, 15(10), 1–12. https://doi.org/10.7759/cureus.47731 Homauni, A., Moghaddam, N. M., Mosadeghkhah, A., Noori, M., & Abbasiyan, K. (2023). Budgeting in healthcare systems and organizations: A systematic review. Iranian Journal of Public Health, 52(9), 8–12. https://doi.org/10.18502/ijph.v52i9.13571 Ross, T. K. (2023a). Introduction to healthcare finance. R. W. Baker (Ed.). Baker’s health care finance: Basic tools for nonfinancial managers (pp. 3-9). Jones & Bartlett Learning. https://books.google.com.pk/books?id=RbPYzgEACAAJ&printsec=frontcover&source=gbs_ge_summary_r&redir_esc=y#v=onepage&q&f=false Ross, T. K. (2023b). Value-based healthcare and its financial and digital outcomes. R. W. Baker (Ed.). Baker’s health care finance: Basic tools for nonfinancial managers (pp. 366-368). Jones & Bartlett Learning. https://books.google.com.pk/books?id=RbPYzgEACAAJ&printsec=frontcover&source=gbs_ge_summary_r&redir_esc=y#v=onepage&q&f=false