How AHA Makes Financial Decisions

Financial Decisions
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Financial Decisions
Proper financial management is critical to healthcare organizations since it facilitates effective utilization of the available resources and addresses risks that might hinder a medical enterprise from achieving its objectives and goals. In particular, effective financial management decreases the challenges that an organization is likely to encounter so that it can offer quality patient care and run its daily operations smoothly. The paper focuses on how the American Hospital Association (AHA) makes financial decisions and the vital tools used.
The AHA has been a successful healthcare organization due to the proper management of finances and regulation of expenditures. The two primary things that enhance financial management in the AHA are controlling expenditures and budgeting (Cleverley, Cleverley, & Parks, 2023). Financial managers keep track of all the transactions performed within the organization. They come up with financial reports that reveal how money has been utilized. Moreover, budgeting is done to ensure that there is a clear plan of how the money will be used to promote the organization’s operations and steer it toward achieving its goals. In addition, financial managers ensure that the way finances are used in the