The nursing management should know that the accounting procedures and methods are not always correct; they should get to understand how the organization is conducting its accounting. The success of any business organization depends on the proper accounting procedures used. The management of the health facility should be in a position to know if the accounting data they have is insufficient for the needs and the budget of the hospital. Lack of proper accounting techniques would lead to confusion and loses if they are not well monitored ( Naberhuis et al., 2017).
The executive management of the hospitals has frequently sought to advance the costing techniques for the services the hospitals offer. There should be an accurate estimation of the hospital budget and therefore the general cost for the expenses incurred in the hospital ( Naberhuis et al., 2017) . The use of the cost management method and use of the absorption method. The hospital heads should sort to educate the hospital staff on this issue, they should analyze the cost flows using the hospital drivers, they should as well organize the health care delivery system to enhance convenience in the service delivery and be able to get a projection of the required budget for the running of the hospital activities.
Delegate your assignment to our experts and they will do the rest.
For the inventory to get managed, the hospital staff should consider assigning of costs to cost pools or having costing centers for each activity, and this should also ensure that the structure of the departmental operations and the structure of the cashing system do not clash. The central role of financial management to the health care organizations is to control and manage money to realize the business objectives of the organization. Proper management and accounting of the economic aspects make it easy to maintain the departments, plan for the activities of the departments effectively and facilitate the boost for the general operations of health care organization. The step down and the level up method in the healthcare could be used to estimate the costs and the expenses of undertaking some practices in the healthcare, it helps to allocate the costs by the service line and as well develop an income matrix for more natural projection of the costs that could be incurred by the health facility. With having illustrated the income expenses for the hospital, the step up method can be used to direct the corrective action that should be taken to improve the financial obligations of the health facility ( Naberhuis et al., 2017).
The product line was costing a systematic method that can be used to predict the cost more accurately, by the use a standard costing method, the managers of the product line can quickly estimate the accuracy of services and the activities of the Product. The retention and the job satisfaction of the new and the old nurses are sometimes related to their work environment and the perceptions surrounding the professional practice in healthcare. Product line costing is the systematic method of tracking and as well studying all the relevant expenses that get accrued in the production and the sales of the products, this is done tracking the costs from the raw materials, tracking the transport expenses and the end product retail establishments. The product cost is the costs met to create the products, among the values are the labor charges and the amount involved in the delivery of the services and the products. The retention of the nurses and the cost of the turnover could get estimated by the number of nurses in the hospital.
Reference
Naberhuis, J. K., Hunt, V., Bell, J., Partridge, J., Goates, S., &Nuijten, M. (2017). Healthcare Costs Matter: a review of nutrition economics-Is there a role for nutritional support to reduce the cost of medical healthcare. Nutr Diet Suppl , 9 , 55-62.
