The availability of various ways of accounting for wellness bed and the rapid development of new other ways of reporting the fiscal statements in health organizations , the laws put in go into avail prevent fraud activities thus reducing the nucleus on the third party payer i .e the consumerReport provided by the oecumenic accounting office in US (1987 ) indicated that on that point were detect effect of major legislative changes on Medi make do and Medicaid programs coiffe ups and cost to the beneficiary . Out of the 30 laws enacted by congress (1980 - 1986 ) 5 showed great effects on be of the 2 programs , they contributed to retardation in Medicare cost growth (Medicare and Medicaid , 1987Some legislative changes light-emitting diode to step-up of the costs by expanding program services . Although the changes in Me dicaid telephone receiver out-of-pocket costs couldn t be calculated , it was observed that more states expanded their cost sharing requirements because legitimate regulations had been enactedThere are two motives observed in he makeup of local multihospital arranging this is according to a study do by David and acknowledge in 1992 Cost reduction and genius enhancement . The establishment may eliminate redundancies and reduce administrative costs . desegregation may also lower the costs but take away no reputation benefitsConclusionBy charge proper books of accounting , a health care organization is able to note its procession as to whether it s running at a loss or profit in to necessitate enough cash bleed to pay its twenty-four hours to day bills of running the health care . Hence , it is important for health care organizations to have legislation on health care accounting practicesReferencesDranove , D , and Shanley , M (1995 : Cost Reduction or Reputation Enhan cement as motives for Merger . Strategic co! ncern journal : Vol 16 , pages 55 -74Medicare and medic ail (1987 : effectuate of Resent Legislation on Program and...If you want to get at a full essay, launch it on our website: OrderCustomPaper.com
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