Mis Case Study 7

The availability of various ways of accounting for health solicitude and the rapid development of new other ways of reporting the monetary statements in health organizations , the laws put in place swear out prevent fraud activities thus reducing the burden on the third party payer i .e the consumerReport provided by the common accounting office in US (1987 ) indicated that there were ascertained effect of major legislative changes on Medicare and Medicaid programs hails and cost to the beneficiary . Out of the 30 laws enacted by congress (1980 - 1986 ) 5 showed great effects on costs of the ii programs , they contributed to subnormality in Medicare cost growth (Medicare and Medicaid , 1987Some legislative changes led to augment of the costs by expanding program services . Although the changes in Medicaid receiving establishment out-of-pocket costs couldn t be measured , it was observed that many an(prenominal) states expanded their cost sharing requirements because certain statute laws had been enactedThere are two motives observed in he formation of local multihospital dust this is according to a study done by David and photographic print in 1992 Cost reduction and reputation enhancement .

The system may eliminate redundancies and reduce administrative costs . integrating may also lower the costs but save no reputation benefitsConclusionBy keeping proper books of accounting , a health care organization is able to note its get along as to whether it s running at a loss or profit in to have enough cash prey to pay its 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 management journal : Vol 16 , pages 55 -74Medicare and medic ail (1987 : Effects of Resent Legislation on Program and...If you want to get a full essay, pitch it on our website: Orderessay

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