Explain importance of fair and accurate financial reporting in the healthcare industry

Financial Compliance and Ethical Decision Making

Focus on and discuss in a few paragraphs “Explain importance of fair and accurate financial reporting in the healthcare industry”.

Many of the regulations you have read about this week were developed from prior actions within the medical community that warranted changes to be made to protect patients, individuals, investors, and other stakeholders.

The Sarbanes-Oxley (SOX) Act of 2002 was born out of several accounting scandals at the time. One of these accounting scandals was HealthSouth Corp., the nation’s largest provider of outpatient surgery, diagnostic and rehabilitative healthcare services at the time (Sec.gov, 2003).