The healthcare industry is one of the fastest-growing industries. It offers a range of career options, from personal care assistants to diagnostic medical sonographers, with a projected 49% increase in employment opportunities in 2022. As the industry grows it becomes more important to maintain financial operations that provide high-quality patient care and also support the continuous growth. This is where the finance team comes in. Financial management covers a broad variety of tasks, including budgeting and planning, evaluating investments, generating revenue, reducing the risk of fraud, and complying with regulations.
Healthcare financial managers are also responsible for analyzing profitability and reporting to managers and internal leaders, and delivering insights for external stakeholders. They typically use trend analysis to uncover patterns in healthcare companies’ financial reports private equity due diligence or to compare data from different periods of time. They may also perform ratio analysis, which is the process of analyzing the most important ratios, such as profitability and liquidity, as well as solvency to deliver insights that assist in strategic decision-making.
Financial managers must decide on the optimal amount of debt to pay for daily operations, and/or to finance growth. They should also find alternative ways to raise funds. This could mean securing a loan, requesting funding from private equity companies, selling assets or changing existing debt into equity.
This critical function goes beyond these elements. Healthcare financial managers face new challenges as the field continues to evolve. They must also navigate a more complicated landscape. The aim is to ensure their facilities are in compliance with the latest laws and regulations, while ensuring profitability and maximising the amount of income.
