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why is it so critical that healthcare facilities have GAAP in place? What might be the...

why is it so critical that healthcare facilities have GAAP in place? What might be the potential consequences of not having GAAP in place?

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Answer: It is so critical that healthcare facilities have GAAP in place because GAAP involves the guidelines which needs to be ensure consistency, accuracy of the procedures and results. And if fails to provide accurate financial results there may be strict liable actions on the organization. So, in the hospital, medical errors are coming and Verifiability of account and procedures are difficult. And if the GAAP would not be in place there may be consequences such as:

  • Reduce financial outcomes
  • Loss of accreditation of the healthcare organizations or professionals
  • No any financial support from the bank.
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