Describe the ethical and legal considerations of a professional strategic financial management function in an organization. What would you do if faced with a legal or ethical dilemma related to financial management in a health care organization? How might that legal or ethical dilemma impact strategic planning? Support your primary response with at least one scholarly source. Provide in-text citation
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Introduction:
As a part of the healthcare industry, medical professionals are not just responsible for providing medical care but also have a duty to perform their financial obligations ethically and legally. In this answer, we will discuss ethical and legal considerations in professional strategic financial management in an organization. We will also look at the possible actions one can take when facing a legal or ethical dilemma related to financial management and how this could impact strategic planning.
Answer:
Ethical and legal considerations are essential in professional strategic financial management, particularly in the healthcare industry. Healthcare organizations must operate under strict ethical and legal frameworks and follow all relevant laws, including those related to patient confidentiality, Medicare and Medicaid fraud, regulatory compliance, and financial reporting.
In a situation where a legal or ethical dilemma arises, medical professionals must act in the best interest of their patients and the organization. One possible solution is to seek guidance from legal or compliance professionals. They can provide expert guidance that enables individuals to understand their liabilities and the consequences of their actions.
In addition, healthcare organizations should have codes of conduct that promote ethical actions and adhere to the laws and regulations governing their operations. Having such a code in place could prevent ethical or legal issues from arising in the first place. Developing a culture that emphasizes honesty and integrity could prevent individuals from engaging in unethical or illegal practices.
In terms of strategic planning, ethical or legal dilemmas related to financial management could impact the organization’s reputation and the documentation it provides to government agencies, particularly in securing funds. If an organization is found to be in violation of the law, it will face consequences that will impact its ability to operate effectively. Therefore, it is essential to ensure compliance with laws and regulations while making financial decisions.
Scholars have emphasized the importance of ethical and legal considerations in healthcare financial management. For instance, according to Cohen, et al. (2017), healthcare organizations must have mechanisms in place that promote ethical decision-making to achieve the best possible outcomes.
In conclusion, medical professionals have a responsibility to follow all legal and ethical requirements in financial management related to their organizations. They must adhere to codes of conduct, seek guidance when necessary, and ensure compliance with laws and regulations that could impact strategic planning.
