The role of the financial manager of the hospital is to allocate resources and plan for the future changes, which are classified as budgeting. Therefore, planning for the future in smart and less costly approach requires integration of the financial, strategic planning. In healthcare system such as private hospital requires strategies that reduce possible losses in the delivery of the services ( Ginter, 2018) . Therefore, financial manager will invest or suggest the hospital to invest in the elective medical treatments, which have fewer risks. Therefore, strategic planning in matters financial management will be based on profitability and continuity of the system. Investor and stockholder of the private healthcare system expect returns, and therefore healthcare system should have strategic financial planning that aims at reduction of the losses while focusing in the future reduction of expenses or maximization of profits. Therefore, strategic planning and healthcare financial management are based on profitability and delivery of the quality services. Usually, private hospitals target specific markets such as cardiology and plastic surgery which are elective in nature and profitable.
Running healthcare facility or system requires resources both human, capital and funds. Therefore, management of the resources calls for healthcare managers and financial experts to allocate resources optimality for better output. The flow of cash in the private healthcare system should exhibit that of a profit-oriented business. Therefore, financial managers in the healthcare system make a decision that ensures net cash flow to the hospital is higher than the cash flow outside. Therefore, planning and strategies employed in the private healthcare system aimed at generating more cash inflows. The strategies include collaborating healthcare coverage insurance firms, reducing the medical fee to attract more clients, the introduction of the tariffs such that certain periods clients come in large numbers to take advantage of the reduced cost ( Cleverley, 2017) . Consequently, the role of the healthcare financial manager is to focus financial matters for optimal output in short and at the end of healthcare facility or system.
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References
Cleverley, W. O. (2017). Essentials of health care finance . Jones & Bartlett Learning.
Ginter, P. M. (2018). The strategic management of health care organizations . John Wiley & Sons.
