Financial Management and its Impact on Choosing the Strategic Alternative for Private Institutions - Case Study of Baghdad Private Hospitals

Abstract

Financial management is one of the most important main managements in various institutions. It is one of the main pillars through which the institutions evolve. The success of the institution in achieving the goals it seeks, depends to a large extent on the efficiency and effectiveness of financial management to carry out its various activities. The importance of this study is evident in the role that financial analysis plays efficiently in achieving the goals of private health institutions. Its importance also comes from identifying the extent of effectiveness in preserving the funds it uses in its assigned works and clarifying the importance of funding sources in a timely manner and at the lowest cost.The research problem is represented in the weakness of the financial management methods used in the health institutions of the research sample and their inappropriateness with the expansion taking place in the competitive environment and with the strategies adopted by those institutions. This study aims to clarify the relationship between the financial management of these institutions and the main challenges they face in trying to propose appropriate management for private health institutions in developing countries such as Iraq. The researcher followed the deductive approach, the descriptive analytical approach, and the analytical statistical approach.The results of the study concluded that the uses of money in the researched institutions were well focused on because the funds of these institutions were not wasted. It was also found that the money was coming from suitable sources according to practical analysis, and this indicates that the financial management in these institutions was of excellent effectiveness. Growth strategy is the most followed strategy in the researched institutions, due to the rapid technological change and intense competition between these institutions, which made them grow and evolve to achieve competitive advantage over other competitors and ensure the sustainability and survival of their institutions.