Financial and compliance managers: roles and responsibilities

Financial Managers & Compliance Managers in Healthcare

The healthcare field represents both a beacon of health services and a business institution. Hospitals and healthcare facilities confront intense demands to lowers costs and simultaneously improve treatment quality. The healthcare industry employs financial mangers to oversee and administer financial reports, investments, and the managers are expected to be knowledgeable about healthcare financing (U.S. Bureau of Labor Statistics, 2011). Healthcare institutions also rely on compliance managers to ensure legal and regulatory rules of the organization are followed accordingly (JD, 2011). Staffing financial managers and compliance managers are critical to the monetary and legal survival of any healthcare business. Many healthcare providers require financial managers to have a bachelor's degree in accounting, and compliance managers to have a degree in finance, economics, or a healthcare management related field.

Average salary earnings for both financial and compliance managers range from approximately $35,000 to $115,000 per year (PayScale, 2011a; PayScale, 2011b). The best way to recruit these positions is to access the preexisting employee network for recommendations, provide training, and to consider advancing employees already working for the institution. The future of the healthcare finance manager job market is more than promising. Overall growth for the financial manager field is expected, and because the healthcare field will continue to grow, financial managers are especially needed with healthcare-related skills and knowledge (Florida Tech University, 2011). The future of compliance manager jobs in the healthcare field is expected to grow over the next decade for similar reasons. The employment of financial and compliance managers within the healthcare field are essential to the business, financial, and accountability of healthcare organizations.

Financial managers in the healthcare field are typically responsible for the day-to-day financial operation of a healthcare facility (Florida Tech University, 2011). These healthcare facilities include hospitals, clinics, physicians' group practice or public health agencies. Healthcare financial managers also engage with investment activities and prepare financial reports (Healthcare Accounting Jobs, 2011). Job duties may also include contract reviews, budgeting, compensation evaluation, planning cash management strategies and implementing financial goals (Florida Tech University, 2011). In addition to the mentioned job duties, financial managers are expected to be knowledgeable of current issues in healthcare financing, specific tax laws and regulations that impact the healthcare industry.

Healthcare financial managers help develop and introduce short-term and long-term objectives to manage an organization through accounting cycles in accordance with policies and strategic plans. The size of the healthcare organization also plays a role in dictating job duties for finance managers. If a financial manager is working for a major hospital, they will work as part of a staff, or could be accountable for supervising staff, hiring, and training finance assistants (Florida Tech University, 2011). Finance managers can expect to work 40-hour work weeks in an office building, and in some instances need to travel to satellite locations if required. Healthcare finance managers provide accurate financial reporting, must communicate clearly about financial concerns, assess problem areas, set financial goals, budget, and oversee accounting (Healthcare Accounting Jobs, 2011). Finance managers are beneficial to healthcare administrators as they attempt to minimize expenditures and introduce cost efficiency while making sure the quality of healthcare is not being compromised. Healthcare organization practices are either conducted as for-profit businesses, or as a non-profit institution, and both require financial models, and the employees to execute them, to assure financial survival.

Healthcare compliance manger job duties are focused on ensuring legal and regulatory rules of the organization are followed accordingly (Compliance Specialist, 2011). Compliance managers in the healthcare setting guarantee all policies and procedures of a healthcare system are being properly maintained, organized, and requests changes when appropriate (Healthcare Compliance, 2011). Careers in compliance management involve providing timely changes and adjustments to healthcare policies and practices as needed, and that these changes are legally valid. In the healthcare field, compliance managers must be knowledgeable of regulations within a medical setting. Due to the nature of the job and the responsibility for maintaining and inspecting policies and procedures, a compliance manger must be extremely familiar with labor laws concerning health, safety, and management initiatives to support the safety of all employees (Healthcare Compliance, 2011). Compliance managers receive concerns from employees who feel their health and safety are at risk, and are expected to take corrective measures to ensure the necessary standards are being met and properly followed.

Compliance managers are beneficial and vital to the healthcare field and administrators because they certify all policies and regulations are being enforced as required. As the healthcare industry provides medical services to patients, the healthcare agencies must guarantee its employees and patients are met with standards and safety. In recent years, healthcare organizations have been confronted with challenges and changes, such as restructuring, reducing hospital inpatient capacity, changes in care procedures, advances in technology, and budget constraints (Sunhonen, et al. 2011). In tandem with these changes is growing awareness for patients' rights, organizational ethical codes, and strengthening of regulations and health policies. Organizational ethics is gaining momentum and growing in significance, and focuses more on the administrative and management ethical issues rather than clinical ethical issues (Sunhonen, et al. 2011). Compliance managers provide guidance to senior management teams on issues relating to compliance, develop and monitor internal programs to guarantee applicable federal laws, state laws and regulations are followed (JD, 2011). Compliance managers work for the prevention of unethical, illegal and inappropriate behavior in the organization, interact with staff from other departments to solve existing problems, and supervise audit reviews by internal and external auditors (JD, 2011). Compliance managers are responsible for investigating any violations or offenses of regulation, policy, rule or procedure, and are then expected to form a plan for corrective action.

The job qualifications for a healthcare financial manager are mostly educational, and some institutions require additional certification. A minimum 4-year degree in finance, accounting, economics or business administration is required for most healthcare finance managers (Healthcare Accounting Jobs, 2011). Although the minimum education requirement is a bachelor's degree, most employees prefer to hire candidates with a master's degree. To qualify for top positions, the ideal candidate will have a master's degree and a number of years of finance experience (Florida Tech University, 2011). Most financial managers have an accounting background and have earned the Certified Management Accounting (CMA) certification (Healthcare Accounting Jobs, 2011). The most preferred candidate for a healthcare financial manager position has earned a Master in Business Administration with a specialization in Healthcare Management. These candidates are able to apply modern theories of effective leadership, management, and negotiation, plan and communicate effectively in the healthcare environment (Florida Tech University, 2011).

The job of a financial manager is best suited for someone with many different personal skills. Candidates with strong interpersonal skills are significant as these jobs involve managing people and working as part of a team to solve problems (U.S. Bureau of Labor Statistics, 2011). Healthcare financial managers must exude excellent communication skills to explain complex financial data, and have a general business understanding to work in alignment with other departments within the organization. A healthcare financial manager position also requires highly developed organizational skills (Florida Tech University, 2011). Financial managers need to be problem solvers, critical and creative thinkers, and be able to apply analytical skills to business.

Healthcare compliance manger job qualifications include educational requirements, experience, and certification. Qualified compliance managers have a bachelor's degree in finance, economics, or related field. In the healthcare field, a bachelor's degree specialized in a healthcare related program is preferred (JD, 2011). The ideal candidate for a career in compliance management has a master's degree in business management. Specific educational requirements, however, differ from one health organization to another, and some require a law degree (JD, 2011). Larger healthcare organizations may have different compliance departments, and it is imperative that a candidate have experience in the department in which they are applying. Individuals seeking a career in compliance management must be knowledgeable of an organization's practices and regulations; therefore experience in a related field is preferred. Compliance certification is also a typical requirement, especially for larger companies. Healthcare organizations may need to hire a compliance manager who has a job certification from the Compliance Certification Board or Health Care Compliance Association (HCCA) (JD, 2011).

Compliance managers are expected to have certain professional and personal skills, including excellent written and verbal communication skills, and for the candidate to be a detail-oriented individual who is capable of working under pressure (JD, 2011). Compliance managers must also have organizational skills, computer experience in word processing and accounting programs, research skills, knowledge of financial institution policies, are able to comprehend legal documents, and be able to reply timely to court, regulatory agency, or legal inquiries (JD, 2011). Compliance managers are expected to pay attention to detail, thoroughly research and communicate findings in order to successfully assess a healthcare organization's accordance to policies and regulations.

The roles of financial and compliance managers differ as one focuses on costs, finances, and accounting, while the other verifies proper legal and regulatory measures are being followed. Despite this fundamental difference, financial and compliance managers work together as healthcare organizations make decisions to lower cost, increase revenue, and improve care. The concept of lowering cost while improving care presents a complex demand, and requires both financial and compliance officers to possess fundamental management knowledge, and similar professional skills in order to implement accounting and ethical standards (Buelow, et al. 2010). For example, a legal requirement or competitive pressures may mandate an organization to undertake an investment, and in this circumstance both financial and compliance entities must work in parallel (Buelow, et al. 2010). Healthcare organizations may also look to cut costs by transitioning to electronic medical records, make staffing more cost-efficient, offering new procedures and better utilizing OR time, and by purchasing used medical testing equipment and machines (Same-Day Surgery, 2011). Each of these circumstances presents opportunities to reduce expenses and increase revenue, and also presents opportunities for regulations and policies to not be followed properly. As healthcare organizations aim to lower costs while ensuring policy procedure are enforced, financial and compliance managers often work together to realize these goals.

Financial managers typically fill a salaried position, and in the United States can expect to earn a salary ranging from $33,000 to $118,000 per year depending on experience, company size, and location. There is a large disparity in salary for individuals with less than 1 year of financial experience, and may earn $14,000-$149,000 per year. Individuals with 1-4 years experience may earn $30,000-$96,000; 5-9 years may earn $40,000-$96,000, and 10-19 years may earn $43,000-$120,000 per year (PayScale, 2011b). Bonus earnings range from $3,500 to $5, 174 depending on work experience between 1 and 20 years (PayScale, 2011b). Individuals with 1-4 years of financial manager experience may received 2.3 weeks of vacation per year, while individuals with more than 20 years experience receive on average 3.3 weeks vacation (PayScale, 2011b). The majority of financial manager jobs belong to women, who fill 62% of job positions and males fill the remaining 38%. Males, however, have the greater average annual salary, earning $50,000-$98,000, and females earn $42,000-$78,000 (PayScale, 2011b). The cities in the U.S. reporting the highest salaries for financial managers are Houston, Charlotte, NC, Los Angeles, New York City, Tampa, and Washington D.C., respectively (PayScale, 2011b). Medical benefits are given to 81% of financial managers, 66% have dental insurance, 46% have vision insurance, and 18% of financial managers have no health benefits (PayScale, 2011b).

Compliance managers in the U.S. can expect to earn $37,000-$114,000 depending on experience and job location. Individuals with 1-4 years experience may earn $31,000-$83,000 per year and 5-9 years experience may result in a salary ranging $46,000-$98,000 (PayScale, 2011a). There is a larger disparity for individuals with 10-19 years of compliance experience, and one may earn $48,000-$115,000 per year (PayScale, 2011a). Individuals with 20 years of experience or more may earn a salary from $55,000 to $150,000 per year (PayScale, 2011a). Bonus earnings range from $2,700 to $8,000 depending on work experience between 1 and 20 years (PayScale, 2011a). Individuals with 1-4 years of compliance manager experience may received 2.3 weeks of vacation per year, while individuals with more than 20 years experience receive on average 3.5 weeks vacation (PayScale, 2011a). Similar to financial manager jobs, the majority of compliance manager jobs belong to women, who fill 62% of job positions and males fill the remaining 38%. Unlike financial jobs, males and females earn similar salaries, and on average is $50,000-$85,000 (PayScale, 2011a). The cities in the U.S. reporting the highest salaries for compliance managers are New York City, Boston, Dallas, Chicago, Hartford, CT, and Denver, respectively (PayScale, 2011b). Medical benefits are given to 86% of compliance managers, 78% have dental insurance, 65% have vision insurance, and 11% of compliance managers have no health benefits (PayScale, 2011a).

One of the most common ways to recruit for a financial or compliance manager is from within the existing organization. Staff members can be trained or promoted to fill a needed position. Companies typically exhaust personal references and their networking abilities before recruiting from a general pool of candidates. Many organizations will hire college graduates who are interested in compliance and finance fields and have them train with an experienced officer before hiring them as a manager (JD, 2011). When a healthcare organization does need to hire from outside resources, a hiring manager must outline a specifically detailed job description for the ideal candidate. Healthcare organizations must consider candidates' education and previous job experience. The most common past jobs for financial managers are financial analysts, senior financial analysts, and finance managers (PayScale, 2011b). The most common past jobs for compliance managers are compliance specialists, compliance analysts, and customer service representatives (PayScale, 2011a). Both career paths typically require past experience in the respective field, or companies will offer additional training for the ideal candidate to be familiar with the demands of the healthcare industry.

The future advancement of the financial management field is promising, especially for those looking for careers in the healthcare industry (Florida Tech University, 2011). The healthcare industry is projected to expand over the next decade by building more hospitals, long-term care facilities, and physician practices due to the growth of the aging population. As the U.S. population continues to age, and advancement in technology allows for better disease treatment, the demand for healthcare also reflects the demand for employees to run the organizations. Although the demand for financial managers is greatest in the healthcare industry, there is still significant competition as there are more job applicants than positions available (U.S. Bureau of Labor Statistics, 2011). Due to the competition, job seekers are encouraged to have a master's degree and specialization in healthcare management to be the best candidate for healthcare financial manager positions. Healthcare financial managers have the potential to find jobs in both urban and rural areas as private practices, clinics, and hospitals all typically employ finance management staff (Florida Tech University, 2011).