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Toward a departmental bottom-line perspective.

D H Schroeder1

  • 1Riverside Health Systems, Kankakee, Illinois.

Health Care Management Review
|January 1, 1989
PubMed
Summary
This summary is machine-generated.

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Financial objectives in healthcare management require understanding the link between costs and prices. Departmental profit and loss statements are crucial for evaluating financial performance and setting goals.

Area of Science:

  • Healthcare Management
  • Financial Analysis

Background:

  • Effective healthcare management necessitates a clear understanding of financial dynamics.
  • The absence of a defined cost-price relationship hinders objective setting and performance evaluation.

Purpose of the Study:

  • To highlight the importance of establishing a cost-price relationship in healthcare financial management.
  • To demonstrate how departmental profit and loss (P&L) statements provide critical financial insights.

Main Methods:

  • Analysis of financial management principles in healthcare settings.
  • Examination of the role of departmental P&Ls in financial evaluation.

Main Results:

  • A defined cost-price relationship is fundamental for setting and evaluating financial objectives.

Related Experiment Videos

  • Departmental P&Ls offer a practical tool to visualize and manage this relationship.

    • Conclusions:

    • Implementing P&Ls is essential for robust financial management and strategic objective setting in healthcare.
    • Understanding the cost-price dynamic is key to improving healthcare financial performance.