Advancement of Mega-Mergers
Increasingly, hospitals in the various parts of the United States of America have been involved in mergers with the other hospitals and the insurance companies. The mergers have brought about a financial advantage to the American hospitals (Morse, 2017). Firstly, the mergers have contributed to the organizations' financial success by ensuring that the healthcare institutions maintain the economies of scale that they need to maintain their competitiveness. The hospitals have also increased their services to the customers leading to growth in their revenues.
Cost-Sharing Reduction Payments
The American federal government has prioritized insurance with the key players in the health insurance sector working on projects that would enable them to serve the American citizens even with the lowest financial capabilities (Obama, 2016). The competition between the insurance companies and their adoption of the Affordable Care Act (ACA) promises a future of cost sharing in the American healthcare sector, which will work towards the affordability of healthcare for the American citizens. The system will ensure that the hospitals have increased their patient count leading to more profits in their financial periods with better financial ratio analysis over time.
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Use of Cloud Computing in Accounting
The use of technology has influenced the process of accounting in healthcare institutions across America. One of the most significant developments in the field of accounting is the development of cloud computing which led to the improvement of accounting by securing the financial information of the healthcare organizations (Cleary & Quinn, 2016). The cloud storage has shielded the medical organizations from the rampant cybercrime and the alteration of the financial reports. The use of cloud computing in the financial aspects has increased the efficiency of the financial statements which has had positive implications on the accounting process in the American based hospitals.
Development of the Generally Accepted Accounting Principles (GAAP)
The development of the GAAP has affected the financial reporting in the healthcare industry, particularly in the United States of America, in many ways. One of the ways that GAAP has influenced the healthcare financial reporting is by reducing the cases of accounting fraud (Grant, 2017). Many organizations have been involved in fraudulent dealings in financial reporting by inflating their revenues, tax deference, and the omission of some of the expenses used in the running of the operations in the organizations.
References
Cleary, P., & Quinn, M. (2016). Intellectual Capital and Business Performance: An Exploratory
Study of the Impact of Cloud-based Accounting and Finance Infrastructure. Journal of Intellectual Capital , 17 (2), 255-278.
Grant, T. M. (2017). Leadership Strategies for Combating Medicare Fraud.
Morse, S. (2017, December). 10 Top healthcare finance trends of 2017 . Retrieved from https://www.healthcarefinancenews.com/news/10-top-healthcare-finance-trends-2017
Obama, B. (2016). United States Health Care Reform: Progress to Date and Next Steps. JAMA ,
316 (5), 525-532.
