Bailey Harden

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Financial management plays a very important role in the overall management of a business. The primary role of financial management is to plan for, acquire, and utilize funds to maximize the efficiency and value of the organization. An organization’s financial management goal must be consistent with and support the overall goals of the business. In healthcare, some of the financial management goals you would see in an organization are: (1) generate a reasonable net income and investing in assets, (2) respond to the multitude of regulations in a timely and cost effective manner, (3) facilitate the organization’s relationship with third party payers who account for a high percentage of a healthcare organization’s revenue, (4) influence the method and amount of payment third party payers choose, (5) monitor internal spending through physicians and their potential financial liability to the organization, and (6) protect the organization’s tax status. All of these goals and objectives target a healthcare organization’s specific functions to help the business operate efficiently and effectively.

Addison Bradley

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The financial management goals you would see in an Assisted Living facility are endless. There are so many large corporations and individual facilities that are all getting involved with senior care within the past few years. The first step is to target an area where you think there is a great need for an assisted living facility. Once you know that you can fill the rooms/beds in that area you need to start setting goals of when the facility will open, what your staffing model will look like, how many directors you need, etc. These are all goals that need to be met so that you can start getting people in the door and make a profit. Most assisted living facilities do not see a profit for a few years so it is also important to set a goal of a time frame of when you should see a profit. AL facilities also need to make it a goal to set prices for the residents and evaluate them every year to see if surrounding facilities are charging a significant amount more or less so they can continue to have residents and make a profit.

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