The Importance Of And The Effect Of Legislation On Healthcare Accounting Practices

The availability of various ways of accounting for wellness implore and the fast development of new other ways of account the monetary statements in health organizations , the laws put in countersink abet prevent fraud activities thus reducing the level on the third party payer i .e the consumerReport provided by the ecumenic accounting office in US (1987 ) indicated that on that point were find effect of major legislative changes on Medic atomic number 18 and Medicaid programs restoration and cost to the beneficiary . Out of the 30 laws enacted by relation (1980 - 1986 ) 5 showed great effects on be of the 2 programs , they contri merelyed to subnormality in Medi carry on cost growth (Medicare and Medicaid , 1987Some legislative changes take to plus of the costs by expanding program services . Although the changes in Medicaid pass catcher out-of-pocket costs couldn t be calculated , it was observed that some(prenominal) states expanded their cost sharing requirements because certain mandates had been enactedThere are two motives observed in he formation of topical anaesthetic multihospital dodge this is according to a study done by David and hybridisation in 1992 Cost reduction and reputation sweetener .

The remains may eliminate redundancies and reduce administrative costs . integrating may also lower the costs but give up no reputation benefitsConclusionBy keeping meet books of accounting , a health care organization is capable to note its supercharge as to whether it s running at a! loss or profit in to have abounding cash pay heed to pay its mean solar day to day bills of running the health care . Hence , it is important for health care organizations to have legislation on health care accounting practicesReferencesDranove , D , and Shanley , M (1995 : Cost Reduction or Reputation Enhancement as motives for Merger . Strategic focus journal : Vol 16 , pages 55 -74Medicare and medic ail (1987 : set up of Resent Legislation on Program and...If you want to circumvent a full essay, cast it on our website: BestEssayCheap.com

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