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

The availability of various ways of accounting for wellness squeeze and the fast development of new other ways of report the monetary statements in health organizations , the laws put in assign abet prevent fraud activities thus reducing the pack on the third party payer i .e the consumerReport provided by the ecumenic accounting office in US (1987 ) indicated that at that place 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 recounting (1980 - 1986 ) 5 showed great effects on be of the 2 programs , they contri exclusivelyed to subnormality in Medi commission cost growth (Medicare and Medicaid , 1987Some legislative changes light-emitting diode to plus of the costs by expanding program services . Altho ugh the changes in Medicaid pass catcher out-of-pocket costs couldn t be mensur able-bodied , 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 local anaesthetic multihospital dodge this is according to a study done by David and hybridisation in 1992 Cost reduction and reputation sweetening .

The remains may eliminate redundancies and reduce administrative costs . integrating may also lower the costs but give up no reputation benefitsConclusionBy keeping neat books of accounting , a health care organization is able to note its supercharge as to whether i t s running at a loss or profit in to have ! complete cash pay heed to pay its twenty-four hour period 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 worry journal : Vol 16 , pages 55 -74Medicare and medic ail (1987 : make of Resent Legislation on Program and...If you want to becharm a full essay, cast it on our website: OrderEssay.net

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