Question

Why is accounting for healthcare different from other businesses?

Answer 1

In many ways accounting in healthcare is unique.

Mainly the role of finance and accounting professionals in healthcare is as follows

• There should be an enhanced focus on internal controls and risk management.
• Executives must focus on business analytics and performance.
• The industry’s growth has to be considered by accountants.

In health care sector there will be more of research and dovelopment costs.

Aligning accounting systems, processes, policies and practices is more important.

valuation and accounting for acquired intangibles is more of different from regular accounting

Identification of assets such as long-term collaborations, customer arrangements, and franchisee and lease arrangements

identification of cash generating units to determine impairment testing strategy;

determining useful lives of the tangible and intangible assets.