The av incommodeability of various ways of accounting for health solicitousness and the rapid development of new other ways of reporting the monetary statements in health system of ruless , the laws put in beam swear out prevent fraud activities thus bring down the burden on the third party payer i .e the consumerReport provided by the common accounting office in US (1987 ) indicated that there were ascertained effect of major legislative changes on Medicare and Medicaid programs hails and cost to the beneficiary . Out of the 30 laws enacted by copulation (1980 - 1986 ) 5 showed great effects on costs of the ii programs , they contributed to subnormality in Medicare cost growth (Medicare and Medicaid , 1987Some legislative changes direct to augment of the costs by expanding program services . Although the changes in Me dicaid receiving establishment out-of-pocket costs couldn t be measured , it was discover that many an(prenominal) states expanded their cost sharing requirements because certain enactment laws had been enactedThere are two motives observed in he defining of local multihospital dust this is according to a study make by David and photographic print in 1992 Cost simplification and reputation enhancement .
The system may eliminate redundancies and overturn administrative costs . integrating may also overturn the costs but save no reputation benefitsConclusionBy retention proper books of accounting , a he alth care organization is able to note its ! get along as to whether it s foot race at a loss or profit in to have enough cash prey to pay its daytime to day bills of running the health care . Hence , it is fundamental for health care organizations to have legislation on health care accounting practicesReferencesDranove , D , and Shanley , M (1995 : Cost decline or Reputation Enhancement as motives for Merger . strategical management journal : Vol 16 , pages 55 -74Medicare and medic ail (1987 : Effects of Resent Legislation on Program and...If you indispensableness to get a full essay, pitch it on our website: OrderCustomPaper.com
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