Healthcare administrators of all types, including nurse managers or financial managers, need knowledge in financial management, analysis, budgeting and evidence-based decision-making. A degree in healthcare management equips professionals with the necessary skills to organize and manage healthcare teams — including the financial aspects involved in operations, staffing and service management.
Why Is Finance So Important in This Role?
To keep the healthcare system running smoothly, healthcare administrators need to understand the financial aspects of their profession. Running a healthcare facility requires knowledge and experience in the financial realm. Those in charge of handling healthcare organizations’ finances play an important role in the industry’s financial security. One slip-up can ruin the reputation of the entire organization.
According to Ankota, there are five finance tips that all healthcare administrators should be aware of and follow diligently throughout their tenure as a manager. These include:
2. Keep Updated Records
Healthcare administrators should regularly review patient insurance information to verify everything is correct. This ensures no problems will occur while paying for hospital stays or any treatment protocols.
2. Keep Updated Records
As key managers within a healthcare facility, administrators must stay abreast of everything happening within the system. This includes any treatment options or equipment no longer in use. They should continuously update hospital records to keep all staff informed.
3. Mitigate Staff Turnover
To combat nurses and other staff from leaving the facility or the healthcare profession, it is up to the administrator to investigate why employees are deciding to leave. Once they figure out the cause, they must fix the system to keep their staff happy.
4. Ensure Easy Payment
Administrators should implement various payment methods to ensure every patient can pay for the services they receive. Each patient is different and might have a preferred payment method compared to another individual. Having options ensures that payments will not be delayed or forgotten.
5. Avoid Outstanding Balances
Healthcare administrators need to have processes in place to double-check with patients who cannot pay for services. Then, they are instrumental in putting together a plan that determines when patients will make payments. This allows the healthcare facility to function properly and maintain cash flow.
Implementing these finance tips is crucial to the success of the healthcare world. It communicates that administrators know what they are doing and will do everything in their power to protect patients and staff.
If money is not handled properly, administrators can step in to change simple policies that will keep the integrity of the healthcare organization — while remaining aligned with the goals of saving lives. Clipboard Health explains, “as a nurse manager, your job is to properly manage your team, resources and facility’s finances to benefit your organization.”
It can be stressful for healthcare administrators to stay updated on the financial status of the hospital or public health facility where they work. But, in today’s environment, it is essential.
Become a Successful Healthcare Administrator With an MHA Degree
One way to advance your finance skills as a healthcare administrator is to further your career in management and earn your Master of Healthcare Administration (MHA) degree. Those who enroll in the MHA online program at the University of North Carolina Wilmington (UNCW) will expand their knowledge of financial management, quantitative data analysis, evidence-based decision making, operational management, ethical decision-making and overall professional capacities to pursue top healthcare leadership roles.
Students will gain valuable experience in the resources, best practices and theoretical insights of healthcare management to effect positive outcomes in the evolving healthcare field. This program gives students the ability to create evidence-based solutions aimed at improving cost, access and quality of care.
For example, in the Healthcare Economics and Policy course, students examine techniques and tools used in business and economic analysis. Then, in the Financial Analysis & Decision-Making in Healthcare course, students are exposed to the financial side of the healthcare organization, how to analyze financial data and how to make evidence-based decisions that impact operations. Later, in the Finance for Healthcare Managers course explores the basic concepts of strategic financial management.
In as few as 12 months, MHA graduates will develop innovative leadership skills required to inspire and foster the next generation. As a result, each future healthcare administrator will obtain the knowledge necessary to advance into roles in healthcare settings such as hospitals and health systems, public health departments and much more.
Learn more about the University of North Carolina Wilmington’s online MHA program.