The Crucial Role of Business Performance.

Business Performance in a Health Organization

Alike any other organization, a health institution has a finance department. This department conducts the business activities and transactions. Therefore, the business performance of a health organization is of great significance in providing policy-makers with an opportunity to facilitate improvements in the health system and securing accountability. Information concerning business performance supplements the making of critical decisions by every stakeholder in the healthcare system. These decisions include the management of inflow and outflow of money and the risks involved while making transactions and boost the health organization towards its financial goals. The stakeholders includes the government, practitioners, patients, managers, citizens as the financial supporter and insurers among others. Business performance helps achieve the following functions.

Financing

With knowledge about expenditure records, a health organization can devise ways which it would raise enough funds for its activities. This would necessitate activities such as acquiring of loans, receiving of grants and holding fundraising events.

fHaving collected information from different managers in a healthcare organization, plans for future investments and predicting how the investments will affect the health institution’s financial uture will be made. Planning and Evaluation The business performance of a healthcare organization will help evaluate the financial effectiveness as well as other general operations. For instance, a hospital can evaluate the revenue from the emergency room and acquire the information that there are patients being lost to a nearby hospital with larger space (Jones, Finkler and Kovner). This will cause the hospital to draw budgetary plans for an extension of its existing emergency room.

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