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Research Journal of Business Management

Year: 2010 | Volume: 4 | Issue: 2 | Page No.: 91-102
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Authors

A. Seetharaman

John Rudolph Raj

A.S. Saravanan

Keywords

Research Article

The Changing Role of Accounting in the Health Care Industry

A. Seetharaman, John Rudolph Raj and A.S. Saravanan
The aim of this study is to undertake a diagnostic investigation of the changing role of accounting in the health care industry. The health care industry has historically viewed itself as being operationally different from other businesses. Health care industry is a growing industry. For the last century in all countries, the operational cost of health care has steadily risen, usually faster than the consumer price index, absorbing a larger proportion of the Gross National Product (GNP). The purpose of this study is to find out the role of accounting in the health care sector in terms of cost saving and improvement in quality management by an integrated information system. This study helps to suggest solutions or methods that have been used in other similar industries and has introduced the importance of Supply Chain Management (SCM), the role of Information System (IS), latest trend of Electronic health (E-health) and an integrated approach to healthcare Total Quality Management (TQM). Understanding the appropriate performance measurement system for health care processes are essential to implement the most suitable and effective system or method to reduce the escalating operational costs in health care organization.
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