ABSTRACT
Healthcare financial managers responsible for the investments of their healthcare organizations should identify the extent of their investment programs' exposure to year-2000-related problems. A letter should be sent to investment-related vendors requesting specific information and assurances regarding the vendors' efforts to contain or eliminate the year 2000 problem. An internal timetable also should be established to move the year 2000 compliance program forward in a timely and organized fashion.
Subject(s)
Chronology as Topic , Computer Systems/standards , Financial Management , Investments , Delivery of Health Care , Software , Time , United StatesABSTRACT
The financial assets of a healthcare organization can present many opportunities for investment. In order to develop a profitable investment program that avoids risky speculation, however, healthcare financial managers must fully understand the nature and risks of their organizations' investments. They must define and monitor their investment objectives, limitations, levels of acceptable risk and policies and conditions through a statement of investment policy and comprehensive investment guidelines.
Subject(s)
Financial Management/methods , Investments/economics , Risk Management/methods , Financial Audit , Guidelines as Topic , Organizational Policy , United StatesABSTRACT
Asset pools of investable funds are major sources of revenue for healthcare organizations. A prudent investment program can assure that these funds will be controlled adequately and managed efficiently. This type of program clearly defines the goals of investment, the characteristics of appropriate investment instruments, the means of monitoring and reporting fund activities, and the responsibilities and qualifications of the institutional investor.
Subject(s)
Financial Management, Hospital/methods , Investments/organization & administration , Guidelines as Topic , Hospital Administrators , Hospital Costs , Risk Management , United StatesABSTRACT
A hospital's pension funds may be managed by its finance department, another internal department, or an outside investment adviser. Whatever the arrangement, healthcare financial managers should be involved in the decision between internal and external management of pension funds. A financial manager also can play a prominent role in developing a pension fund policy that balances a hospital's commitment to legal requirements, pension plan goals, and communication with investment advisers.
Subject(s)
Financial Management, Hospital , Financial Management , Pensions , Personnel Administration, Hospital/economics , Communication , Decision Making, Organizational , Interdepartmental Relations , Investments/standards , Models, Theoretical , United StatesSubject(s)
Governing Board , Hospital Planning/economics , Investments/standards , Risk Management , United StatesABSTRACT
Because the financial markets are volatile, every healthcare organization should establish its own investment policy and guidelines. An investment policy reflects the views of a hospital's board of trustees, and helps the trustees avoid conflict of interest situations. Investment guidelines spell out management's approach to three critical investing components: safety of principal, liquidity, and yield.
