The Six Major Objectives of Healthcare Financial Management (HFM)

BHA427 Case 1: Healthcare Financial Management
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Introduction
Healthcare Financial Management (HFM) entails applying financial techniques and principles to a healthcare organization to accomplish its goals and objectives. In HFM, an organization's financial resources, such as a clinic, hospital, and healthcare system, are managed to facilitate effectiveness when delivering healthcare. It is crucial to apply effective HFM since it enables the overall success of the healthcare organization, which includes providing quality care to all patients. The essay will articulate the six major objectives of HFM.
The Six Major Objectives of HFM
To Generate an Income
HFM aims to generate income. Income generation enables the organization to survive and grow (Nowicki, 2017). It allows the organization to maintain the services it offers to the community. Generating income is essential since, without a net income, the organization may not continue to operate (Nowicki, 2017). The net income is usually the monetary difference after all the organization's expenses are deducted from the total revenue collected over a specified time. Healthcare organizations make a net income by investing and using assets.
Responding to Regulations
HFM aims to respond to regulations. In healthcare, various regulations exist to protect the sick and those unable to stand up for themselves. Regulations are necessary as they facilitate standardized care delivery to all patients. In healthcare, the state, federal, and local governments pay at least 55% of health insurance expenses (Nowicki, 2017). Therefore, the healthcare organization must manage its finances well to show that the health insurance expenses are well spent. Nowicki (2017) states that organizations must be certified and accredited, to be paid by third-party payers.
To ensure a good relationship with Third-party Payers and Patients