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Shutter healthcare is a non-profit making organization for treating people who cannot afford to buy health insurance. The organization is based in Sacramental, California where it is serving more than one hundred communities. Facilities compose of many hospitals and physician organizations that share resources in the provision of quality in the healthcare department. Due to the economic recession, it has become extremely difficult for shutter healthcare facilities to recover large debts from uninsured or underinsured patients. In addition, shutter healthcare is being faced with mismanagement of patient information and poor accounting systems. As a result, it has become difficult for them to provide quality services. For this reason, shutter health care is designing a system that they are going to use to solve all their problems (Souza & McCarty, 2007). Therefore, an analysis of both the old and the new system of California shutter healthcare is done.

Introducing a New System in California Shutter Healthcare

California shutter healthcare is facing certain problem in the provision of services. First, they are finding it difficult to provide quality services to patients. Secondly, the organization has poor accounting system that is making it difficult for them to collect large debts from the uninsured and underinsured patients. This is constantly happening due to the lost of information in the organization. Over past few years, the organization has been loosing information causing poor accounting systems and inequality delivery of services. For this reason, they decided to introduce a new system in the organization to cater for their problems in the system.

The accounting principle of the organization is accountability and transparency. According to the accounting system of California shutter healthcare, they are ensuring that there is transparency in the system. In this case, they are creating openness in the way information is being handled across the organization. This way they are trying to make sure that information is not loss in any way. Additionally, the organization is making sure that all the accounting information is made direct for purposes of revenue collection. This means that there is no information that is going to be hidden from the company. Moreover, they are ensuring that they have all the information they need when it comes to revenue collection from the patient.

Secondly, the organization is placing all their employees accountable to the information being handled in the organization. The organization realizes that placing employees accountable for all the information in the company, they are not going to lose any information.  Additionally, the organization is placing accounting employees accountable for any revenue collection of the company. In this case, employees are likely to improve the quality of work done in the organization. As a result, high quality work is going to be maintained in the organization.

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Cost reduction is another accounting principle being maintained by the California shutter healthcare. The organization is taking measures that will ensure low spending on costs, as they increase revenues in the organization. In this case, they are trying to unify the system by making it standard in all facilities in the organization. This will ensure no costs are made when turning from one system to another across the organization. Moreover, unification and standardization of the system is making sure that there is continuity of work being done in the organization, and at the same time, information loss is reduced.

In addition, shutter healthcare is considering training of their own employees rather than hiring professional employees. The process of hiring new employees in the company is extremely expensive for the company. For instance, they are going to spend a lot of money to recruit new employees through advertisement costs, interview costs and training. New professional employees will require training for purposes of becoming acquainted with organization policies. On the other hand, employees already employed in the organization will not require training of the company policies and no advertisement costs are going to be spent (Souza & McCarty, 2007). Finally, they will not require salary increment. If they do, the salary will not be as high as for the new professional employees.

Another accounting principle that is going to be used in the company is the use of efficiency. In this case, California shutter healthcare is introducing a new system for evaluation of employee efficiency in the work they are doing for the organization. To begin with, the system is going to evaluate all the employee amount of work they perform on a daily basis providing averages for each employee on a yearly basis. Secondly, the system is expected to analyze the effectiveness of work done. This is where the machine is expected to show whether the employees are performing their duties without mistakes.

Alternative Measures

Reduction of the debt collection is one of alternative measures that should be taken by California shutter healthcare. According to the current debt collection period, it is taking too much time for the organization to recover their debts. As a result, they are giving too much room for employees to escape with the organization money long after they have acquired treatment (Rauscher & Wheeler, 2008). In this case, the organization should consider changing to a system that has a shorter debt collection period. This will ensure that patients do not escape with the organization money. Additionally, it is going to increase companies’ revenues result into the increase of company profits.

Code: Sample20

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