1. 33). The governing body has the

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1.     Healthcare organizations are
recognized as corporations by the state. Healthcare organizations are made up
with people and groups that organize as legal entities. Being classes as a
corporate provides many advantages, the first is that it offers limited
liability, which means owners of healthcare organizations are rarely held liable
for negligence and contracts. Second advantage of corporate status is that it continues
to exist even after the death of an owner. Another advantage is the capability to
raise capital. Investing in a corporation is easier as the risk is only
financial. Lastly, shareholders of for-profit corporations are free to sell
their shares whenever  (Nowicki).

2.     The governing body creates the
purposes of the organization and is also responsible for the development,
maintenance, and utilization of all resources in the organization (page 33). The
governing body has the legal responsibilities for the organization. The
governing body not only chooses a CEO, but also uses committees to oversee the
CEO’s performance. The executive committee monitors all the committees
including all the chair members of all the committees. Finance committee
monitors the performance of the CEO in all financial matters.

3.     The responsibilities of the chief
executive officer, CFO, are as follows: First, through authorized management
establish, coordinate, and maintain, an assimilated plan to control operations (Nowicki). Second is to
measure performance against the created plans and report to all levels of
management. Third is measure and report on the legitimacy of the business
objectives and on effectiveness of its policies, and the measures taken to
accomplishing those objectives. Forth is to supervise taxes and report to the
government agencies as required. Fifth is to understand and report the effect
of external influences on the achievement of the objectives. Lastly, provide
protection for the business assets (Nowicki). A successful CFO
needs to be a good leader and as well as have the ability to adjust to change,

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honestly and work well with others.

Since the CFO has so many responsibilities and is the crucial member of the
organization, it is very important that the CFO must be intelligent, well experienced,
good decision maker and competent.

4.     Corporate compliance officers are
responsible for conducting compliance reviews, which is evaluating how well the
organization obeys with fraud and abuse laws. They are also responsible for
investigating potential fraud, abuse problems and examining relationships and
contracts for possible illegal provisions (Nowicki). On the other hand,
Chief Information Officer is responsible for providing management supervision
to all telecommunications systems and information processing. They assist
senior management in utilizing information in management decision making. Their
duties are also different from those of CCO as they include e-commerce,
e-health and web based multimedia techs. Outsourcing all or portion of the
information technology departments (Nowicki).

5.     Internal auditors and independent
auditors differ in various ways. Independent auditor is a large accounting firm
hired by the healthcare organization to do the auditing, whereas internal
auditor is the employee of the organization. The primary concern of the independent
auditor is the financial reporting needs of external companies, on the other
hand internal auditors main goal is to protect the organization’s assets from
fraud, error and loss. While independent auditor’s responsibilities are limited
to financial matters, internal auditors are responsible for both financial and
operational matters (Nowicki).

6.     Organizational models that
integrate patient care are integrated delivery system, physician-hospital organization
and accountable care organization. Integrated delivery system is a system of
healthcare providers capable of taking financial responsibility for and
delivering a full range of medical services (Nowicki). Physician-hospital
organization, on the other hand is a joint project capable of contracting with
managed care organizations. Lastly, accountable care organization, emphasizes
coordinated care and mandates provider accountability. This concept includes
financial incentives for organizations that take responsible of providing
quality and cost of care to a stated population (Nowicki). 

Categories: Accounting


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