Measuring the efficacy and utilization of healthcare cost against healthcare talent remains a challenge in this industry. However, with recent innovation opportunity to combine both are becoming plausible. In the following paragraphs a comparative approach will establish how Private and Public Sectors are able to integrate cost management all while maintaining adequate care.
Patient Accounting and Practice Management systems are designed to help health care medical practices are to improve the quality of care, cut cost, reduce risk, and increase revenues. When it comes to the size of a medical practice from small, or to a large medical practice, multi-location group this will feather the system to allow in creating and maintaining a patient billing information much faster and more efficiently then it was ever before. Medical Assistants are able to enter a patient information and post any changes much faster and more accurately with the use of a simplified medical billing software that promotes physician acceptance and much greater investment protection that provides faster insurance reimbursement and to improve
Basic financial statements are valuable documents in the management of health care organizations. Financial statements are helpful in the management of health care organizations and determination of their credit worthiness. Investors and other stakeholders also find the statements highly beneficial in determining the appropriateness for investment in the health care organization. Accepted accounting principles are conventions set to regulate formalized systems of accounting; especially applied in America. Set by the financial accounting and standards board, accepted accounting principles guide the preparation of basic financial statements in all organizations (Riahi-Belkaoui, 2004). The basic financial statements include the balance sheet, cash flow statement, statement of changes in the organization's assets and statements of operations. Health care organizations must adhere to generally accepted accounting principles that are relevant to their operations. Different accepted accounting principles are applicable to the management of health care organizations and preparation of financial documents. Since most health care organizations must conform to the auditing standards by CPA, they must use the various accepted accounting principles.
If I were in a management position and had to create a working strategy in order for my company to gain strength, I would create a plan involving three phases: capital shortage, evaluation of the funding options for medical equipment, and the evaluation for capitol expansion. I would then run the necessary financial reports, analyze all the collected data, and then decide the best strategy for our improvement. Financial gain is important to the company, however budgeting is a must.
This week chapter 1 focused on introducing financial management in healthcare organizations. Financial management provides accounting and finance information to assist managers in making decisions to accomplish the organization goals. Accounting is divided into two sections: financial and managerial. Financial accounting is to provide information to external users, such as the government, lenders, insurers etc. Managerial accounting is to provide information to internal users, such as managers. Both accounting methods are very important to healthcare organizations, as they are both needed. The chapter also discusses the six major objectives of healthcare financial management, quality assessments, and ethical theories.
Managers who are managing health care organizations must be attentive to the accounting practices and must obey and practice the financial management procedures to be able to solve any issues if any should arise. With the continuation of the high costs of health care managers as well as consumers must know how to budget carefully. According to All Business. (2010), the cost of providing health care services, patients way of payment for these services and the environment in which those patients reside and receive those services are important elements that affect the care this is or may not be
Federal health care costs continue to exceed the American economy fueled by federal health care law, rising enrollments, and increased enrollee spending. The 2010 Affordable Care Act (ACA) significantly changed federal health care policies in the key areas of insurance coverage, access to care, medical care financing, and Medicare program operations. ACA provides good benefits to Americans but comes with a 12.2% increase in cost to the federal government (Meyer, 2017). Health care costs are projected to increase to more than $4 trillion dollars by the end of 2017 nearly doubling since 2006 (Meyer, 2017). Economists project this trend to continue estimating a 6.9% increase annually making it the single highest cost to the federal government (Edwards, 2017). The cost of health care is approaching a crisis if unchecked will continue to grow. Congress has struggled to reach consensus on a more efficient approach to managing health cares costs failing in 2017 to repeal or replace ACA. They will need to reengage now to enact laws to stabilize this looming threat to the American people. I recommend three changes to reduce the impact to federal debt. These changes are repeal individual and employer mandates,
Medicare focuses on medical acute care such as doctors visit, hospital stays and drugs. Also, it focuses on short-term services such as physical therapy after a fall or stroke (U.S. Department of Health & Human Services, 2013). Medicare covers services for long term care such as short stay in a skilled nursing facility, home heath services and hospice/respite care, but it does not cover costs for personal/custodial care such as help with bathing, dressing, eating, etc.. In 2015, Forbes reported that Medicare will pay for some of the costs only if a patient meets the following conditions:
A significant, impactful trend on healthcare organizations (HCOs) is the implementation of technology-based information systems (IS). The systems consist of hardware and software used in gathering and processing data that supports the provision of patient care. There are administrative systems, which have been in place for decades and their usefulness are highly recognized. They track services rendered, billing processes used for third party payers and patients, as well as payroll for employees. Administrative systems are essential for the financial component of a business. More recently, the importance of clinical information systems has moved into the spotlight. They are intended to
The Northeast Health Council, INC was established in 1993 to meet the primary healthcare needs of the residents of the Northeast through a not-for-profit community-responsible approach.
The benefit of technology in healthcare can help improve quality of care and reduce adverse events. Kaiser Permanente invested in an electronic medical system to increase positive clinical outcomes. Implementation of the health information system would have three system functions. The first objective was to reduce operating cost by improving staff efficiency, reduce patient’s number of hospital days, and reduce adverse drug events and increase preferred prescription adherence. The second objective was to increase revenue which was accomplished by improving appropriate billed charges, improving coding accuracy for Medicare risk, and increase collections. Decreasing capital expenditures was the final function which was achieved by decreasing
Hospital reimbursement begins with the Clinician’s documentation most especially the Physicians who must ensure a complete, precise and accurate clinical documentation to support reimbursement and optimal quality reporting. It is of paramount importance that the Physicians ensure the documentation in the medical records reflects the genuine and exact story of the patient (Corsello, 2015). Additionally, if a Physician's documentation such as the primary diagnosis does not clinically reflect the documentation recorded in the patient's chart, there is a potential that the insurance company or the Centers for Medicaid and Medicare may deny the hospital reimbursement for the services provided to patients. Furthermore,
Indicating the capital justification expenditures is vital for the return on investment of a Per Provider for Electronic Medical Record Implementation. Several key aspects are necessary to mention of the amount and type of expenditure, attainment of key decision criteria, and detailed financial analysis. Hospitals, clinics, and ambulatory care settings even have to indicate important capital expenditures. Factoring in risk is always crucial to consider as well as physician acceptance, competition from HCO’s and volume and market data increase. Health care organizations and universities should be maintaining increased ROI and consistently improving areas of risk and HCO’s aspects to be mentioned in further detail.