Hospital CFOs and other healthcare executives who deal exclusively with accounting are dealing with a great amount of change in how they manage their organizations' financial strategies. A report from the Association of Chartered Certified Accountants has identified eight broad areas of change that will shape the accounting landscape, including across the healthcare industry, over the next decade.
The ACCA, a global organization for accounting professionals, released the report, citing that "turbulence is the new normal" for business leaders. As organizations grapple with shifts in regional wealth, economic uncertainty and political transitions, the business landscape is also changing due to market volatility and enhanced globalization. The ACCA said its study was created "to help accountants and business leaders prepare for an uncertain tomorrow."
Based on telephone conversations, emails consults and accounting forum reviews, the ACCA and others came up with 100 drivers of change across these eight categories:
1. Economy. The global financial crisis has been far-reaching, and it is still creating "turbulence" in several sectors. Changing public attitudes toward capitalism, infrastructure investment, labor mobility and mergers are all influencing the economy, which relates to hospital CFOs and financial directors.
2. Politics and law. The scale and complexity of regulations and governance can be seen globally as well as within the American healthcare system.
3. Society. Global population growth and other demographic changes (such as the growing rate of baby boomers) are creating new challenges and opportunities within accounting.
4. Business. New business models like bundled payments and globalization, including some health systems expanding abroad, are putting new and unique requirements on hospital CFOs and accountants.
5. Science and technology. Digitized business is emphasizing the Internet, social medial, electronic health records and the "rise of 'big data.'"
6. Environment, energy and resources. The world is a finite resource, and increased efforts to highlight "eco-literacy, green practices and ethical consumption" are relevant to all sectors, especially healthcare.
7. Practice of accounting. The CFO role is changing in both scale and complexity thanks to new accounting standards and the globalization of supply chains.
8. Accountancy profession. The financial crisis has placed a more critical view of accountants and those responsible for the financial health of hospitals and other organizations.
To view the report in its entirety, click here (pdf).
The ACCA, a global organization for accounting professionals, released the report, citing that "turbulence is the new normal" for business leaders. As organizations grapple with shifts in regional wealth, economic uncertainty and political transitions, the business landscape is also changing due to market volatility and enhanced globalization. The ACCA said its study was created "to help accountants and business leaders prepare for an uncertain tomorrow."
Based on telephone conversations, emails consults and accounting forum reviews, the ACCA and others came up with 100 drivers of change across these eight categories:
1. Economy. The global financial crisis has been far-reaching, and it is still creating "turbulence" in several sectors. Changing public attitudes toward capitalism, infrastructure investment, labor mobility and mergers are all influencing the economy, which relates to hospital CFOs and financial directors.
2. Politics and law. The scale and complexity of regulations and governance can be seen globally as well as within the American healthcare system.
3. Society. Global population growth and other demographic changes (such as the growing rate of baby boomers) are creating new challenges and opportunities within accounting.
4. Business. New business models like bundled payments and globalization, including some health systems expanding abroad, are putting new and unique requirements on hospital CFOs and accountants.
5. Science and technology. Digitized business is emphasizing the Internet, social medial, electronic health records and the "rise of 'big data.'"
6. Environment, energy and resources. The world is a finite resource, and increased efforts to highlight "eco-literacy, green practices and ethical consumption" are relevant to all sectors, especially healthcare.
7. Practice of accounting. The CFO role is changing in both scale and complexity thanks to new accounting standards and the globalization of supply chains.
8. Accountancy profession. The financial crisis has placed a more critical view of accountants and those responsible for the financial health of hospitals and other organizations.
To view the report in its entirety, click here (pdf).
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