Healthcare Financial Problems and Remedial Action Plans
According to the Tenet Healthcare Corporations strategic assessment, the organization has two main weaknesses: namely, the misappropriation of finances and the lack of maintaining accounting books. This causes the situation when the clients lack the reports on past finance usage and payments. Although the misappropriation of funds in the organization has not affected the organization, it will happen in the future. Misappropriation of funds will lead to amplified theft as well as fraud in the organization. It will lose funds, the reputation and staff as well as their morale. The preceding weakness is a result of the lack of appropriate bookkeeping in the organization.
Bookkeeping in organizations assists with proper reportage on usage of funds in the organization. Reporting and bookkeeping helps to determine the loss and profit made by organizations as well as providing their financial position. More importantly, the lack of efficient bookkeeping leads to misappropriation of funds in the organization. The situation occurred in the Tenet Healthcare Corporation has led to lose of clients and misappropriation of funds in the organization. These weaknesses are leading to decrease of staff morale, immoral image of the organization and reputation, which will cause future losses for the organization. Therefore, the lack of well-established bookkeeping has major negative effects on the organizations performance, which also leads to the weakness of misappropriation of funds as a consequence.
Remedial Action Plans
Misappropriation of funds within an organization is considered a crime and should be reported to police for the investigation. Once the investigation is on, the police will find the source and subjects involved in the misappropriation of organization and clients funds. When they have been identified, the persons involved ought to be suspended or given the appropriate correctional action. This will aid in preventing future losses and safeguarding the financial position of the organization. The stolen funds are to be recovered through engaging and introducing dismissal procedures to all guilty parties. The organization is to engage in further investigations to ensure other employees do not continue committing this crime to clarify whether it is not systematically or wholly affected by the weakness of misappropriating funds. Moreover, the organization should monitor complex information to make sure and appraise financial statements to guarantee the absence of misappropriation of funds.
The lack of efficient bookkeeping in the organization can be handled clearly through making it mandatory for the healthcare provider to have detailed reports on financial payments as well as general financial usage in the organization. This can be managed by ensuring that detailed forms on general reportage of all financial transactions are developed and followed strictly. In order to enhance its bookkeeping, the organization ought to have a detailed description on the sources of revenue, statements of expenses and a balance sheet that recognizes all accounts on hand in the organization. Additionally, the company can review all bank statements on a regular basis, confirm wire transfers, and offer appropriate system admission to ensure employees handle job responsibilities equally and accountability. What is more, the organization needs to have an approach of authenticating cash logs and review them to guarantee financial transactions within the facility. The organization is to match the revenue with the expenses and record the statements to ensure accurate recording of income, profit and loss of Tenet Healthcare Corporation.
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Measurement of Effectiveness and Resources Required
Financial management is used to manage and govern the financial resources. This is done through collecting accounts receivable, accounting, budgeting, financial reporting, and risk management among other ways. In order to establish efficient bookkeeping, the organization will require a trusted and reliable accountant to execute ones duties accordingly, as well as creation of both internal and external bookkeeping reports on all general financial transactions. On the other hand, having misappropriation weakness in the organization, it will be required to engage the police to introduce investigations that consequently will reduce the employees misappropriation of funds. Furthermore, when effective bookkeeping management is organized in Tenet Healthcare Corporation, the aforementioned weakness will be handled. Besides, the organization can introduce accounting information systems (AIS) to assist in ensuring the effectiveness of the remedy actions.
The effectiveness of these actions will be measured through the improved performance of the organization and by curbing of the weaknesses. For instance, if misappropriation of funds is managed, the employees will not engage in such behavior anymore. This will indicate effectiveness of the strategies implemented. In addition, through the well-maintained bookkeeping, the organization will track all financial transactions of the healthcare institution. Therefore, providing clients with information about all past financial transactions in the organization, it will have effectively curbed the issue on bookkeeping and ensure satisfied customers and efficient organizational performance. Financial management stands as the key to effective appraisal of financial weaknesses and reimbursement.