Cancer is one of the modern health problems in the world. The development and spread of cancer in the new generation is rising at a very high rate among all individuals in the society. One of the major challenges with this health jargon is the cost of treatment. Cancer is associated with high cost of treatment and continuous medical procedure that may last forever depending on the level of development. The financial expenses associated with cancer are not only high to the patients but also to the healthcare catering for cancer patients, NGOs and the governments. Therefore, a good financial management team is essential in all health-care organization dedicated to cancer treatment and awareness (American Cancer Society, 2012).
Impact of Cancer on For-Profit and Non-Profits Organizations
There is a major difference in cancer management and awareness impact on the for-profit and non-profit organization. For –profit healthcare organizations depend on the patients’ medical payment to cater for all their expenses and for further growth and development of the organizations. Due to high cost of treating cancer, these organizations only handle a small percentage of those patients who can afford to pay for their treatment without being sponsored. This results to low total income in such organizations, due to low level of enrollment. In most cases, patients diagnosed with cancers approaches physicians with different issues which they hopeful expect to be treated. Therefore, most of them lack financial preparation that would cater for cancer treatment expenses. Consequently, the organizations are always faced by ethical challenges, after admitting patients who cannot pay for their bills even after receiving expensive cancer treat up to a certain level. Although they are bound by ethics to put their patients’ welfare first, to some extent, doing so undermines their business.
On the other hand, non-profit organizations depend on aids given by well wishers and the government. The organization sponsors the treatment of cancer to all patients who come out to be assist and especially those from marginalized areas. Consequently, the organization receives a high population of patients requiring their assistant. Sometimes the number goes beyond the organization capacity, straining its resources. This force the organization to divert some of its financial resources channeled to less demanding need: awareness, to handling the suffering patients.
Perspectives and Responsibilities of the Financial Management Staff
Financial management is defined by n.a. (n.d.) as decision science. The accounting gives decision makers reasonable means to budget for and evaluate financial performance of a business. Financial management staffs provide tools, concepts, and theory necessary to make improved decisions. They are also required to secure the financing required to meet operating objectives of a business. A business planning or marketing department would project the organization’s services and goods demand. Facilities manager would approximate the assets required to handle the projected demand. Finally, the department of finance would raise cash required to purchase the required supplies, equipment, buildings and land. The financial management primary role is to plan for, get, and make use of funds to maximize the value and efficiency of an organization. They should therefore be aware of every department’s activities and requirement to be able to develop a reliable budget. In non-profit making organization, finance manager may be required to budget for emergencies and non-predictable event. Although, sticking to the approved budget is one of the financial management staff perspective, some situation may make it hard to do so. Therefore, the staff should consider setting aside a certain percentage of their budget for unpredictable events (n. a., n.d.).
Basic Rules and Regulations of the Issue that the Financial Management of the Organization Must Address
Every finance management system must be governed by various rules and regulation to be able to provide their services. For a non-organization to continue receiving aids from well wishers, good financial management and finances professional practices must be observed. This includes development of accurate and reliable annual financial reporting, addressing aspects specified by the donors or more where possible. They should also keep accurate and clear accounting records documenting the financial sources. Effective money control and accountability should also be maintained to give reasonable assurance that particular entity objectives will be attained. They should have a budge control strategies where actual outlays and expenditures must be contrasted with budgeted amounts for every sub-grant and grant. in addition, they should have a well defined allowable cost principle and agency programs regulations. In for-profit organizations, all financial records and reports must be generating to establish the financial position of an organization. The budgeting should consider the organization’s financial position and major goals while setting their budget. Being a profit making organizations, the finical department needs to ensure well maintained profit and loss account and develop strategies to curb losses in an organization (Wisconsin.gov., 1994).
Financial management is essential for all for-profit and non-profit healthcare organizations. In most cases, non-profit health organizations are forced to keep straight records on their finances to attract more grants and aids. On the other hand, for-profit healthcare organizations keep good finance records for easy monitoring of the financial development of the organization. Therefore, financial management department is very essential in all healthcare organization irrespective of their diverse financial goals.
Wisconsin.gov. (1994). Basic elements of an effective financial management system. Retrieved from < http://www.dhs.wisconsin.gov/grants/Administration/FMM/BasicElements.pdf >
- a. (n.d.). Introduction to healthcare financial management chapter 1. Retrieved from < http://www.ache.org/pubs/Gapenski_Ch1-proofed.pdf >
American Cancer Society (2012).American cancer society stewardship report . Retrieved from < http://www.cancer.org/acs/groups/content/@corporatecommunications/documents/document/acspc-034356.pdf >
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