This chapter deals with financial management in healthcare institutions. Topics which will be covered in this chapter include the function of financial management in a company and elements of financial management. We also discuss types of ownership and related organizational forms of healthcare institutions, which influence financial functions. We are trying to identify the general role and objectives of financial management in healthcare institutions. Having in mind the fact that financial management is based on the information provided through company’s accounting we will give an overview of basic accounting concepts. They influence financial reporting, which is also covered in the chapter through a presentation of different types of financial statements and their content.