The Basics Of Healthcare Accounting

Posted by admin on December, 2021

While physicians focus on saving lives and improving their patients’ health, they don’t have any time to be handling billing, payments, and taxes. Thankfully, medical or healthcare accounting exists to make life easier for those that own or run a hospital, clinic, or any other healthcare facility.

From a financial perspective, the healthcare industry can be complex. As the market expands and technologies evolve, consumers expect greater financial transparency from their healthcare organizations.

In this blog, we’ll discuss the basic information you need to know about medical accounting.

What Is Healthcare Accounting?

Healthcare accounting is a branch of accounting that focuses on collecting and reporting financial information for healthcare organizations. CPAs keep financial reports, balance sheets, cash flow analyses, and other financial information for healthcare organizations. These organizations rely on these medical accounting services and records to remain compliant and make strategic decisions.

Healthcare Accounting vs. Regular Accounting

Medical accountants do much of the same work as regular certified public accountants (CPAs). To ensure transparency and accountability regarding finances, they follow the same guidelines as standard accounting practices, such as generally accepted accounting principles (GAAP).

According to the Health Care Compliance Association (HCCA), this type of accounting exists within a complex network of stakeholders, including:

  • Patients
  • Healthcare providers and care facilities
  • Insurance companies
  • Employees and employers
  • Pharmaceutical companies and medical device manufacturers
  • Government agencies and lawmakers

This means that healthcare accountants oversee more complicated accounts.

Why Is It Important?

Like all businesses, healthcare organizations need to be financially responsible to the state and federal government for resources gifted to them through funding or reimbursements. A variety of rules and regulations must also be considered when auditing a hospital or clinic.

Accounting practices can vary from state to state, so healthcare institutions must stay up-to-date on changes in their area and adapt accordingly. As insurance companies become stricter with their reimbursements, it’s more important than ever for financial professionals to manage accounts while staying relevant.

Who Can Use Healthcare Accounting?

As a healthcare professional, you may not have the time or resources to learn healthcare accounting. Fortunately, some professionals specialize in the financial side of things within your industry.

Healthcare accounting is available and beneficial for:

  • Hospitals
  • Doctor’s clinics
  • Specialist offices and clinics
  • Nursing homes and assisted living facilities
  • Laboratories and diagnostic clinics
  • Dental offices
  • Orthodontic offices
  • Outpatient clinics

Or any other organization inside the healthcare industry.

What Can We Do For Your Organization?

You can now erase one complex task off your list, thanks to our CPAs at Roberts Accounting. If you want to have top-quality accountancy services, we are your best choice. We offer you all kinds of healthcare accounting services for your business, such as:

  • Bookkeeping
  • Business Payroll
  • Smart tax services
  • Billing
  • Prepare financial statements

And any other accounting services you might need.

Our CPAs have over 18+ years of experience in healthcare accounting and all the knowledge required to keep your finances as transparent as possible. Our priority is to give you all the necessary information to make smart business decisions and keep growing.

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