Article 1 in our series on CARF accreditation
A valuable tool for healthcare organizations and rehabilitation facilities
Achieving CARF accreditation is a significant milestone for healthcare and rehabilitation facilities, but it requires a strong financial foundation. Financial statement audits and reviews play a crucial role in demonstrating an organization’s compliance with CARF’s high standards, particularly around operational efficiency, transparency, and financial stability.
What is CARF accreditation?
Commission on Accreditation of Rehabilitation Facilities (CARF) accreditation is a rigorous process that ensures healthcare and rehabilitation organizations meet the highest standards of care, safety, and ethics. Financial statement audits and reviews are a key component of this process, as they provide evidence that an organization has the controls and stability needed to meet CARF’s criteria.
Why financial statement audits and reviews matter for CARF accreditation
1. Ensuring financial transparency
Audits and reviews offer a clear, independent view of your organization’s financial health, highlighting areas of strength and revealing potential risks. This transparency demonstrates to CARF that your facility can maintain stable operations, which is critical for strengthening your position during accreditation.
2. Strengthening compliance
Audits and reviews help organizations ensure compliance with local, state, and federal regulations. For healthcare organizations, staying up to date with changing regulations is essential, and audit and review processes keep financial reporting in line with the latest guidelines. This alignment satisfies CARF requirements and mitigates potential risks from noncompliance.
3. Improving operational efficiency
Financial statement audits and reviews often uncover inefficiencies that can hinder an organization’s operational performance. Through the audit and review process, leadership can identify cost-saving opportunities and streamline financial operations, while maintaining high-quality care and meeting CARF’s efficiency standards.
4. Building trust with stakeholders
CARF accreditation is recognized as a symbol of quality. Having audited or reviewed financial statements helps build trust with CARF and stakeholders such as funders, donors, and patients who expect transparency and fiscal responsibility.
A financial statement audit or review is not just a box to check for CARF accreditation, it’s often a requirement and it’s a valuable tool to ensure your organization is operating at peak financial efficiency and compliance. Regular financial statement audits and reviews can provide insights that lead to better decisions and long-term sustainability.
Questions? Keiter’s Healthcare & Medical Practices team can help you if you’re considering an audit or review for your practice. Contact us. Email or Call: 804.747.0000
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About the Authors
Zac serves clients in the healthcare industry and is a leader in Keiter’s Healthcare and Medical Services Practice. He assists his clients with financial reporting in conformity with generally accepted accounting principles, consulting on strategic business initiatives, as well as helping them understand the accounting and financial reporting implications of complex equity transactions and implementation of new accounting standards. Read more of Zac’s accounting insights on our blog.
Jim works predominately with clients in the medical and dental industry where he provides tax planning and compliance services related to practice acquisitions and transitions. Jim strives to add value to his client relationships by being a trusted advisor. He is a leader in Keiter’s Healthcare and Medical Practices team. Read more of Jim’s accounting insights on our blog.
Rachel brings a passion for providing superior value to her assurance and audit clients through the highest form of quality service. Understanding her clients’ organizational missions and providing tailored engagement services is paramount to her approach. Her clients include healthcare companies, and she is a member of the Healthcare and Medical Practices team. Read more of Rachel’s accounting insights on our blog.
The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.
