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In California, Accounting Gone Awry

''This was a matter of not thinking through the consequences of two different departments having different accounting structures,'' says the head of the state Department of Mental Health.

Stephen Taub, | US
March 13, 2007

The Mental Health Care Imperative and the Ramifications of Financial Reporting Errors

We already understand that there is an ethical duty of care to not cause harm (non-malfeasance) to mental or physical health patients as per the Hippocratic oath. Similarly, there is an ethical duty of non-malfeasance for financial reporting and also for accurate reporting per Generally Accepted Accounting Principles. Thus, there are both ethical and accounting standards where the latter arises under both health care services and accounting. Errors in accounting could impact mental health services by means of implications for mental health services funding. This is a critical and fundamental reason why health care services and any related financial reporting thereto should be highly regulated. We are dealing with human lives, not merely the prima facie issue of financial reporting errors. In other words, the health and the financial reporting realms tie together and could be represented by an overlapping Venn diagram. To see or to do otherwise is to act counter to proper care of human beings who have mental health issues and to mask this improper care with financial reporting manipulation or error.

Posted by David Newman | April 06, 2007 12:51 pm

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