Fee For Service Research Paper

This article compares the magnitude of economies and 14 non-scale producing cost centers in hospital.

Another issue contributing to the high cost of health care is inefficient use of premium dollars from insurance companies. I am proud to say that the insurance company I work for does a great job of making proper use of insurance premiums. As a company we use on average 8 cents of every premium dollar. This means that 92 Percent of each dollar goes to paying patient's claims and building reserves. Unfortunately this is not as common as it should be. According to Harvard's David Cutler who is among the country's foremost health economists, our administrative costs for health care equal one quarter of the cost of health care today. By comparison, the next closest country spends around 10 to 15 percent on administrative costs (2013, para. 4 and 6). There are many things that could be done to lower administrative costs.

The purpose of this paper is to conduct a comparative analysis between for-profit hospitals and not-for-profit hospital. It will discuss the characteristics of each as well as factors affecting the operations of both systems. Additionally, it discusses potential areas of improvement and some of the challenges associated with each relative to finance and operations.

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

Determine the supporting factors that would aid in the reduction of healthcare cost in your organization without reducing quality of care for the patients.

Looking at the 2009 Operating Budget, is easy to deduct that PFCH management team has been practicing successful management techniques augmenting the revenues in almost 10% from 2008 in comparison with not even a 6% in expenses increase. For 2010 the percentages of increase are lower based on the assumption that a three percent general deflation rate for prices in 2009 will continue into 2010 as a result of the weak economy (Virtual Organizations, 2011). The figures are as follows: Patient revenue and total revenue will increase three percent in 2010, and even if it is at a decreased rate with little or no increase in patient volume, resulting of new managed care contracts, the tendency of having a major increase in revenues than expenses continues with only a 1.26% expenses increase.

Free college is a commonly accepted idea, as a crucial part of society's advancement. Education is the foundation for building a strong country, as knowledge is what allows for productivity in all areas of life. However, the cost and accessibility to standard higher education limits many people's availability to a quality schooling. Some may argue that public colleges should continue to charge tuition, as the federal government can not afford the cost nor will creating higher taxes to enable the program solve the crisis. However, ultimately, higher education should be free as it would stimulate economic growth, remove the primary deterrent for not attending college and decrease dependence on government aid.

Surprisingly health administrators are often accountable for fabrication fiscal decisions that can impinge both their health care association and the caliber of management communicate. Also, it can be extremely demanding to equalize strive requisition, and it sometimes pits low-cost, quality, and ethics against each other. For instance, administrators often must decide between employment more personnel to diminish nurse-to-patient ratios and purchasing or restore, recover equipage. Above all of these things could improve quality of care.

What does the number 15 mean to you? For some it may be a birthday or a lucky number, but to many others it represents something much larger. Twenty years ago, the number 15 was merely a number, but things have changed, today 15 has a become a revolutionary symbol for change in economic equality in America. The revolutionary movement known as “Fight for $15” is leading the charge in transforming the working poor’s starving wage of $7.25 into a living wage of $15. Supporters of the movement express the need for a higher minimum wage, not as a want, but as a necessity and a right. Senator Bernie Sanders, a leader in the campaign for the fight for $15, said “I think if you work 40 hours a week, you have a right not to live

The issue of making college tuition-free has recently come to many’s attention in American politics, largely because the two leading contenders for the Democratic presidential nomination, Bernie Sanders and Hillary Clinton, have each mentioned it. Sanders has called for free undergraduate tuition at public colleges and universities, to be financed by a tax on Wall Street speculation, while Clinton has done the same, although with some qualifications and a different funding mechanism (www.forbes).

Fee simple defeasible is another way of saying fee simple qualified. Fee simple qualified is an estate for which owner has fee simple title subject to a condition. If the condition is not met, then the title passes back to the owner. It is a conditional estate based on that condition. A condition subsequent is a condition that must occur after the transaction and a condition precedent is a condition that must occur prior to the transaction. The classic example is that of a specific use being required of a property. A man gave his property to the city to use as a library. Years later the city stopped using the property as a library and the man’s heirs demanded the property back. The man’s family regained title because the title held by the city was a fee simple defeasible / qualified title and the condition was that the property be used as a library. Just as a contrast, a fee simple absolute, is a transfer with no conditions. Synonyms: fee simple qualified Antonyms: fee simple absolute Related Words: estate, title, freehold estate

B.Some organizational costs that can effect nursing care and aggregates within a hospital are staffing, supplies and equipment. Staffing costs can affect nursing care and their patients through many means. From my experience, the employment of a nurse practitioner or physicians assistant instead of a doctor can at times place a strain on the nurses and patients. Due to their limited capabilities and skills, when compared to a doctor, they often end up needing a doctor to either further assess a patient that they are seeing, or wait to receive direction from the doctor on how to treat a patient if they are unsure of what to do. This in turn leads to longer wait times and frustrations for patients not only inside the emergency room but outside as well.

Though they are not entirely comprehensive tools, a great deal can be learned about a hospital or other healthcare organization for-profit or not-for-profit from an examination of their annual financial documents (Finkler & Ward, 2006). The balance sheet and statement of revenue and expense can both yield valuable clues even in the absence of other evidence about changes that might be occurring in the organization, a definition of the type and degree of certain problems that it might be facing, and potential opportunities for improvement in performance that might exist (Finkler & Ward, 2006). Comparing two or more years' worth of financial information yields even more valuable insights, tracking movement in the hospital or other organization's ability to finance its activities and thus continue providing services at the same level, quantity, and scope as current operation.

“Hospitals can be non-profit, for-profit, and government-owned and/or operated” (Baker & Baker, 2006). There are different terms for each classification in how to report and handle the finances but the basics are the same for any type of business. Business finances require the following basic fundamentals: creating “budgets, understanding capital expenditure, loan acquisition, and financial fees” (Baker & Baker, 2006). Government owned and operated hospitals offer unprofitable services; which

The problem at Memorial Hospital is the focus on costs instead of health care. When a health care provider does not take the primary business as the core value of the operation and make strategic and tactical decisions based primary on costs, it decreases the consumers’ (patients) satisfaction in long run. As consumers reduce or stop purchasing goods and services from the hospital, hospital may make more cost oriented decisions and falls into a negative cycle. Eventually the hospital may face the fate of loosing business to competitors and the possibility of closing the door.