Accounting Controls To Reduce Healthcare Fraud

Healthcare Fraud Article

Healthcare fraud is a big problem, making health care more costly for hard-working Americans. This type of fraud can occur in numerous ways, ranging from unintentional accounting errors to extremely high and illicit costs associated with false claims. The healthcare industry spends around 12 percent of its overall revenue on billing and collection, making this segment rife for abuse and fraud.

Several new ideas have been proposed to control the excessive costs of this fraudulent activity. One of these ideas is making sure that the patient is involved with the billing process. Patients need to be tuned into every stage of the billing process so that transparency is always in effect. The same goes for accountants and accounting managers, who need to be intimately involved in the complex details of the billing process. These professionals should intervene on behalf of the patient when potential fraud is detected.

An infographic about accounting controls that reduce healthcare fraud by UAB Collat School of Business.
University of Alabama at Birmingham Online

Better Governance of Finance for Better Business in Ethiopia

Banking and finance in Ethiopia have been under the Ethiopian governments’ jurisdiction for a long time. Their growth, in these circumstances, has been stunted. Privatization of the banking and insurance industry is needed to have a positive effect on the finance of the country. Increasing the amount of private investment in banking and insurance will ultimately lead to a more open and constantly developing business economy. There is need for foreign investment in Ethiopia and to fulfill this need, a certain amount of freedom for privatization needs to be given.

The primary financial institution of Ethiopia is the National Bank of Ethiopia or the NBE that serves as the Central Bank for the country. Commercial banks exist for specialized functions. The Commercial Bank of Ethiopia or CBE is the largest of these banks. Along with the CBE, there are other private commercial banks like the Abyssinia Bank, the Awash International Bank, the Construction and Business Bank among others to name a few. These banks perform all commercial banking activities and provide facilities like savings and checking accounts, loans, money transfers as well as equity investments.

There are two development oriented specialized financial institutions. Development Bank of Ethiopia or the DBE provides loans for developmental agricultural and industrial projects whereas the Construction and Business Bank or the CBB extends long-term loans for construction of business plants, private infrastructure and overall real estate development.

Until some years ago, the Ethiopian Insurance Corporation or the EIC was the sole insurance company in all of Ethiopia providing insurance solutions to individuals as well as corporations. It is a recent development that the government of Ethiopia has allowed private insurance companies to build the foundations of a thriving insurance business here.

A central bank with its reigns firmly embedded in the hands of the Ethiopian government is very essential. At the same time, it is also important for a thriving finance to have freedom to grow. The pace of privatization, though initially slow at the outset seems to be picking up now, which is positive for the growth of a strong business oriented economy.