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Article: To centralize or decentralize? (centralization of financial functions using electronic data interchange)(Electronic Data Interchange)
- Article from:
- Healthcare Financial Management
- Article date:
- September 1, 1995
- Author:
CopyrightCOPYRIGHT 1995 Healthcare Financial Management Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Many multihospital systems have to decide whether to centralize financial functions at a corporate office or decentralize those functions to financial managers at each hospital site. The advent of electronic data interchange (EDI) can act as a catalyst for financial managers to make such decisions.
At least three areas of healthcare financial management can be managed centrally or in a distributed fashion: the management of information systems, cash and banking, and financial operations. The advent of EDI has an impact on all three areas. Financial managers also must decide whether to centralize or decentralize the management of EDI itself. The decision about EDI ...