May 20, 2013
How might financial managers budget for unforeseen changes and improvements in information technology that require large capital outlays?
A financial manager needs to have a portion of their budgets used as a state of credible advancements for all the systems in the hospital organization. In medical association, an information department consists of a lot of changes over a small period of time. A good ...view middle of the document...
Numerous healthcare institutions will hire third party company to be in charge of updating the hospital system with the latest information technology. Financial managers will need to take into consideration benefits and cost, if institution decide to transition to a new system .The latest technology transition in the health care field was the adoption of ICD-10. This system will provide benefits such as:
* More accurate payment for new procedure
* Fewer rejected claims and fewer improper claim
* Improved disease management
* Setting health care policy
* Better understanding of health care condition and health care outcomes
* Harmonization of disease monitoring and reporting world-wide
* Higher quality data because of improved medical coding accuracy
* Preventing and detecting health care fraud
* Improving clinical, financial, and administrative performance
Financial managers will have full control on deciding whether or not to transition into this system. Some of the options include direct adoption and cash flow disruption costs. Some factors to take into consideration will be that some of this cost will be a one time cost, while other is a reoccurring cost. There is three of ICD-10 adoption cost includes: system cost, training cost, and...