Health Services & Financial Management COLLAPSE In response to worldwide demand

Health Services & Financial Management
COLLAPSE
In response to worldwide demands for universal health coverage (UHC) and the inclusion of UHC in the Sustainable Development Goals, several nations have implemented health sector changes during the last decade. Due to the 2008 crisis, however, the budgetary space for public services has shrunk over this era, resulting in a revived interest in public financial management (PFM), which aims to enhance service delivery while managing spending.(Wishnia & Goudge, 2020)
The World Bank and the World Health Organization (WHO) have re-emphasised the need of providing facility managers and district health offices power and flexibility over healthcare expenditures (DHOs). The objective of this decentralization is to produce a more effective utilization of resources.(Wishnia & Goudge, 2020)
An accountant’s role is integral to an organization’s financial success. Financial accounting and managerial accounting are two of the largest branches of the accounting field. Financial accountants provide documents such as income statements and balance sheets that are used by other parties (investors and industry regulators). The statements provide information on an organization’s financial performance over time as well as its overall financial health. Financial accountants, who create these statements, are regulated by agencies such as the Securities and Exchange Commission (SEC)(“Financial Accounting vs. Managerial Accounting,” 2020) Managerial accountants create financial papers that are used internally by corporations. The records account for firm resources such as raw materials, labor, and equipment in ways that assist executives in increasing efficiency. Companies may utilize both financial accounting and management accounting to create complete plans for company maintenance and growth.
The Saudi government has implemented measures to enhance the country’s health system finance and delivery. The revisions highlight a number of obstacles in satisfying healthcare requirements and limiting growing costs. Population growth and aging, the rise of non-communicable chronic illnesses (NCDs), and the expense of delivering modern healthcare all contribute to rising healthcare costs (more and more costly diagnostic and therapeutic options). Considering that the Saudi government finances 67% of healthcare, the existing financing mechanism raises worries about its financial viability.(Hazazi et al., 2022)
Launched in 2021, the Health Sector Transformation plan under Vision 2030 aims to restructure the health sector into a complete, effective, and integrated health system based on the health of the person and society, which includes citizens, residents, and tourists. 18,21 The program is built on the philosophy of value-based care, assuring financial sustainability and transparency through promoting public health and illness prevention. Through extending the supply of e-health services and digital solutions, the initiative seeks to increase access to and quality of health services via optimum coverage and comprehensive and equal geographical distribution.(Alasiri & Mohammed, 2022)
Reference:
Alasiri, A. A., & Mohammed, V. (2022). Healthcare Transformation in Saudi Arabia: An Overview Since the Launch of Vision 2030. Health Services Insights, 15, 11786329221121214. https://doi.org/10.1177/11786329221121214
Financial Accounting vs. Managerial Accounting: A Comparison. (2020, September 17). University of North Dakota Online. https://onlinedegrees.und.edu/blog/financial-accou…
Hazazi, A., Wilson, A., & Larkin, S. (2022). Reform of the Health Insurance Funding Model to Improve the Care of Noncommunicable Diseases Patients in Saudi Arabia. Healthcare, 10(11), 2294. https://doi.org/10.3390/healthcare10112294
Wishnia, J., & Goudge, J. (2020). Impact of financial management centralisation in a health system under austerity: A qualitative study from South Africa. BMJ Global Health, 5(10), e003524. https://doi.org/10.1136/bmjgh-2020-003524
515 Athis is was qoustion There are a number of unique factors relating to the health services sector:
Compare the two types of accounting functions.
Describe how the accounting functions affect operational oversight.
How do these unique features affect the financial management of the sector?