Healthcare Accounting

Today’s busy healthcare sector proves just how important it is for healthcare institutions to pay attention to the operational side of the business. In order to sustain the work done by medical front liners and other professionals in the patient care continuum, healthcare businesses need to be organized, accurate, and fully transparent about their money matters.

Just like any other type of business in the Philippines, a healthcare institution needs accountants to keep track of its financial records, financial audits, and remittances to regulating bodies like the Bureau of Internal Revenue (BIR). But healthcare accounting poses some unique challenges compared to the routine accounting work that’s done in other industries. There are a lot of considerations that healthcare accountants need to make so that they can do their job well.

Knowing that, if you want your healthcare business to improve its bottom line, you’ll need to invest in a high-performing healthcare accounting solution. ANSI Information Systems, a vendor of cutting-edge technologies for accounting, enterprise resource planning (ERP), and ecommerce, will help you implement a solution to address the financial challenges that come with working in healthcare.

What Is Healthcare Accounting?

In simple terms, healthcare accounting constitutes the accounting practices that are used by healthcare institutions like the following:

Public and private hospitals
Primary care clinics
Specialist clinics
Diagnostic laboratories

Dental and orthodontic offices
Outpatient medical care facilities
Nursing homes
Assisted living homes

Given that it is also done in a business context, healthcare accounting encapsulates many standard accounting processes that are used by other industries. These include:

Cash flow management
Bank reconciliation
Cash disbursement

Petty cash fund management
Management of accounts payable (APs) and accounts receivable (ARs)

Two things that make healthcare accounting different from accounting that’s done in other industries, however, are its complexity and the breadth of its constituent network. A healthcare business, after all, is not only accountable to itself and its employees in the medical field. It must also practice financial responsibility for the sake of its patients, its partners in the insurance and government sector, its suppliers for pharmaceutical and medical technology products, and other stakeholders.

A functional, scalable, and transparent healthcare accounting system will sustain a healthcare business’s operations and keep its doors open to serve patients for the longest possible time. In that respect, good healthcare accounting is undivorceable from good healthcare delivery.

How Should Filipino Healthcare Businesses Approach Their Healthcare Accounting?

As a decision-maker in a Filipino healthcare business, you may understand the importance of modernizing your healthcare accounting system. But where do you start, and what should you aim to achieve?

ANSI Information Systems recommends this three-pronged approach to your overall healthcare accounting modernization efforts:

Simplify the Health Business’s Accounting Framework

The prospect of upgrading to a new healthcare accounting solution may intimidate you. But remember that any new technology that you onboard should simplify your accounting framework rather than complicate it further.

A new solution, as well as a new approach to doing your healthcare accounting, should help you achieve a 360-degree view of the company’s finances through its balance sheets, reports, and other sources of financial information. When your healthcare accounting process seem simpler as well as faster and more accurate, you’ll know that it’s done a good job.

Improve Accounting Processes for the Whole Network of Patient Care

Another thing that your business should strive to do is to improve its accounting processes for every end of the patient care continuum. Don’t stop the buck at strengthening your internal systems for payments, expenses, disbursements, and other key financial processes. To unlock better healthcare experiences overall and to gain the trust of your patients and business partners in the care provider network, move to improve the accounting experience for their side as well.

Modernize Healthcare Accounting Systems to Meet a Digitally Driven World

Lastly, knowing that the healthcare sector is experiencing rapid growth and innovation, your business should aim to keep up. Revamping your healthcare accounting system to be more flexible and more data-driven will allow your business to stay competitive according to both local and global standards.

What Are the Benefits of a Dependable Healthcare Accounting System?

Upgrading your healthcare accounting system may require you to make a significant upfront investment. But you can expect the following benefits once you’ve made the transition:

Extensive Automation Capabilities

Once you’ve upgraded your core system, you can say goodbye to costly accounting errors and delays. Your new healthcare accounting solution’s automation capabilities, paired with its consolidated data repository, will ensure that your accountants are working with accurate and up-to-date data and that they can finish complex accounting processes with greater accuracy and speed.

A Robust Health Record Management System

Modern healthcare accounting systems rely on electronic health records (EHRs), which will make it much easier to complete tasks like calculating individual patient bills and settling APs and ARs. You will be able to see big improvements when you shift out of a legacy system with manual record-keeping processes and into a healthcare accounting system with EHRs.

Enhanced Financial Decision-Making for Healthcare-Related Challenges

With a better solution for your financial housekeeping matters, you will be able to see the full picture that characterizes your healthcare business’s financial situation. This will allow you and your accounting team to execute business-critical financial decisions related to your profitability, cash flow management, revenue management, and debt management with more confidence. You won’t falter when it comes to making hard calls about your business’s financial management—and your patients, employees, and other stakeholders will reap the benefits.

Strengthened Ability to Meet Regulatory Compliance

Regulatory compliance is a constant source of stress for businesses, and even more so for those that operate in the strenuous field of healthcare. An enhanced healthcare accounting solution, however, will streamline your compliance efforts. Rest assured that you and your accounting team will have less difficulty meeting regulatory requirements thanks to the solution’s advanced calculation and financial reporting capabilities.

Let ANSI Information Systems Improve Your Bottom Line and Your Patient Outcomes with a Dedicated Healthcare Accounting Solution

ANSI Information Systems is a multi-awarded software vendor that’s been in the industry for more than three decades. Refer to ANSI’s track record, industry experience, and good reputation among clients when looking for a technology partner for your new healthcare accounting solution. Contact us now to schedule a demo and find a solution that can bolster your healthcare business’s bottom line and patient outcomes.

Interested? Send us an email.

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