Organization Financial Management Issue Order Instructions: interview co-workers or those responsible for finance in your organization on the financial management issue that you identified in Week 1. Your interview should capture salient information about the issue including information which you derived from the literature Potential questions you might want to use, include How long has the organization tried to address this issue?
What measures have been taken to address this issue in the past? What future steps have been planned to address this issue? What problems does the organization foresee as blocks to addressing this issue? How did your perception of the financial issue differ from the perception of those who are actually working on finances in the organization? Take the information you have learned from the interviews and create a 2-3 page paper with your findings. Be sure to explain the roles of the individuals you interviewed. As you reflect on the results of the interview, use current literature to further explain the important points.
Post your response in a Word document to the W2: Assignment 2 Dropbox. Cite all sources in APA format.
Organization Financial Management Issue Grading Criteria Maximum Points
The interviews contained information on the financial management issue in the organization including a description of the organization, the role within the organization of each individual interviewed and their viewpoint on the financial issue under study.
15
Interview included at least two people in the organization.
5
The interviews contained details of the measures taken to address the issue.
15
The interviews contained details on the future steps that have been planned to address the issue.
15
The interviews contained information on the blocks that the organization foresees in resolving this issue.
10
Contained statistical information providing background on the financial issue, including numbers of patients or nurses affected and some indication of the actual dollar cost and its percentage of the total hospital budget and any additional information to illustrate and further describe the financial issue.
15
Utilized current literature to further explain some of the identified issues.
15
Used APA style (which includes grammar, spelling, and punctuation, as well as formatting).
10
Total:
100
Organization Financial Management Issue Sample Answer
Over the past five years it has been noted that the budgeting of treatment of diabetes at St. Patrick’s Hospital has been a major financial issue. This has been reported to affect about 300 patients who are usually referred to other hospitals. As a nurse who works for the hospital which is a public hospital, I was tasked with the task of interviewing several staff members from the hospital concerning this issue.
For the purposes of the interview, I chose two staff members to interview, that is the Chief finance officer of the hospital whose main role is to oversee the allocation of funds to various departments and the doctor in charge of chronic diseases department whose main financial role is to oversee the usage of funds allocated for chronic diseases treatment . According to the chief finance officer, the hospital has had a shortage of funds when it comes to the budgeting of treatment of diabetes for the past five years. The hospital mainly depends on the government for funds to be used in buying of the drugs to be used in the treatment of diabetes of which the funds are insufficient. The chief finance officer had two main reasons to explain the reason why the funds are insufficient. Firstly, he noted that the drugs have become costly compared to how they were five years ago. He added that the government has continued to allocate the same amount of money that it used to allocate five years ago that is $100 million without putting into consideration the appreciating price which is at an approximated $150 million. Out of the $100 million, the hospital is required to use 0.05% for diabetes treatment. The finance officer furthers on by stating that 0.1% is required for full diabetes treatment in the hospital. A quick check on this reveals that according to a research done in 2013, it was discovered that diabetes drugs are the most expensive compared to any other drugs and that in between 2012 and 2013, the price had risen by 14% and that the price will continue to rise between 10% and 13% annually through 2016 with $245 billion being used in the USA for diabetes in 2013. The same was reflected in traditional medications such as diabetes therapies whereby the cost had risen by 0.5% between 2012 and 2013. (Chawla, 2014, pg 7)
Secondly, the chief finance officer was able to identify the tremendous increasing number of diabetic patients over the past five years as being the other reason as to why budgeting of diabetes has been a major financial issue. Interviewing the doctor in charge of chronic diseases was able to give us salient insight on this point. The doctor who is a member of the association was able to avail to us crucial statistics from the American Diabetes Association. According to the association, in 2010, there were 25.8 million reported cases of diabetes in the USA and in 2012, the number had risen to 29.1 million and he mostly associated this to the living style of the American People. (Chawla, 2014, pg 7)
All in all, the chief finance officer, who although acknowledges that nothing much has been done states that in the past they have tried to address this issue through sourcing of more funds from the government which has proven to be futile.
The hospital has taken several measures to address this issue; the doctor states that it has organized an annual marathon in conjunction with the American Diabetes Association. The marathon is aimed at raising proceeds that will be used in the treatment of diabetes. Time limit may become a barrier in performing this measure since a lot of time is required in the organizing of a successful marathon that will raise sufficient funds. The chief finance officer reveals that the hospital is sourcing funds from other alternative organizations such as the World Health Organization but he also states that these organizations might fail to corporate and this may be a barrier. The chief finance officer also states that funds allocated to other departments will have to be cut by 2% which will be directed to diabetes treatment. (In Dunham-Taylor & In Pinczuk, 2015, pg 224)
In conclusion, before the interview, my perception on the best way in addressing the financial issue was through regulating the number of diabetic patients but through the interview I was able to learn that that was practically impossible but rather the best method was through raising more funds.
Organization Financial Management Issue References
Chawla, R. (2014). Manual of diabetes care.
In Dunham-Taylor, J., & In Pinczuk, J. Z. (2015). Financial management for nurse managers: Merging the heart with the dollar.
