Financial Management in Health Care

Abstract

The understanding of financial management decisions for the professionals in healthcare sector is important for the overall decision-making and sustainable growth of the organizations. To ensure sound financial health of healthcare firms, the role of financial management is important at both primary and secondary levels. The key responsibility of the finance manager in the healthcare organizations is not only limited to raise and invest money to maximize the wealth of the stakeholders, rather they are also responsible to make financial results available to various stakeholders periodically to ensure timely and effective financial management decisions. The present chapter highlights the importance of financial management in healthcare organizations. The chapter enables to understand the objectives and functions of financial management in healthcare organizations, application and role of inflation, and time value of money for decision-making in healthcare organizations, analyze the working capital management practices of healthcare organizations, and evaluate the capital budgeting decisions for healthcare organizations.KeywordsFinance management in health careFunctions of finance managementTime value of moneyWorking capital managementCapital budgeting