Question

Write a 175- to 265-word response to the following:

• How has financial data for health care organizations influenced strategies? Provide an example.

(Please no copy and paste answers.)

Answer 1

Financial data has influenced the healthcare organization strategies in the following ways:-

1. Expansion of business:-

Organizations need loans to fund their expansion. In order to get the loan from financial statements, updated accounts, and balance sheet is a must. Therefore, financial statements are a must to get a loan. For example, in recent years, we have seen chains of hospitals which are growing at a very face and accurate financial data is the foundation stone of it. Hence, it is important to have correct financial data.

2. Cost per service estimation:-

Nowadays, there is cutthroat competition among the businesses. So in order to survive, cost has to be accurate. For example, heart surgery is a very common product which all hospitals sell. But the price is very competitive and therefore unless there is accurate information with respect to all the costs, it is very difficult to quote a price. Price should cover all costs and profit also. Many times, it has been noticed that hospitals are unable to determine actual costs and therefore, go into losses. Therefore, financial data is vital.

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