Healthcare Financial Planning Essay

The Institute of Medicine’s (IOM) six aims of quality provide an advantageous framework to progress the quality of care in the U.S.A. health care system. IOM developed six aims for improving to provide safe, effective, patient-centered, timely, efficient, and equitable patient care (Institute of Medicine, 2001). Organizations need to strategically plan to evolve in meeting IOM’s six aims and to remain a financially sound entity. Strategic planning involves defining the future and stipulating the measurement of achievement (Sare & Ogilvie, 2010). The purpose of this paper is to start the initial steps for creating a strategic plan in a healthcare organization, through describing and evaluating an unmet need, considering the mission, vision, and values, providing the background context, vision, strategic goal, and consider the broader issues.

The main function for health care financing is to pay for health insurance premium and reimburse health providers for services delivered. Still, there is a crucial challenge when creating health insurance plans, provide coverage for “health care needs without encouraging unnecessary spending.” (Maas) Over time, health care financing has been evolving, and now consumers can acquire health insurance through government programs like Medicare, which it is for the elderly, for certain individuals with disabilities and end-stage renal disease. Therefore, any person who meets the requirements can enroll to this program. Also, there is Medicaid, which it is the program for the poor, and Children’s Health Insurance Program best known as CHIP, which insure kids who come from low-income families. Nonetheless, there are several types of private insurance like self-insured plans, individual private health insurance, Medigap, and group insurance program, which it is “… a substantial number of people in the group will purchase insurance through its sponsor.” (Shi, 2019, p. 224) Further, thanks to the diversity and wide range of health insurance

A strategic plan is a tool that delivers guidance in achieving a mission or goal with maximum proficiency and control for an organization. Strategic planning is used to transform and revitalize organizations. The plan helps provide an inclusive understanding of opportunities and challenges both internally and externally for the organization. The plan delivers an assessment of the strengths and limitations that are realistic within the company. A well-developed strategic plan will offer a comprehensive approach and empowerment for the stakeholders involved. It is an opportunity for learning and understanding priorities that will drive the business to succeed. Jones (2010), describes how in health care organizations, strategic plans

A creating annual budget for health care organization needs teamwork. Each department financial outlook projection needs to be made by the heads of the department because they have the responsibility of their unit’s daily operation.

Strategic Planning is an essential first step in the development of a result-base accountability system,” (Schilder, 2013, p. 1). In strategic planning an organization must know their goals, missions, and how to reach them. Health care facilities are in huge demand for the elderly and for people who lives in low-income communities. A person who receives good quality health care services can prevent the spread of contagious diseases. This paper will describe the need of the community, population it is serving, and a brief description of the facility.

The society we reside in has evolved to the point of no return. Most of our health care system consist of technology, implementation, goals, scanning, monitoring, forecasting and assessing. However, critical strategies and resource priorities involve ensuring that all the essential elements are currently met within the organization. Also, prioritizing strategies are as follows strategic thinking, strategic planning and managing strategic momentum. Each facet acknowledges and identifies what is important in hospitals and health care. Therefore, the delivery of each process allows the organization to recognize the need for the patient and population. THE LITTLE BOOK “the plan sets direction for the organization and through a common understanding

Without strategic planning, several things can go wrong including missing out on great opportunities. Strategic planning is an organization’s outline to help achieve its purpose. Although strategic planning begins at the top of the pyramid, it is more effective when it is carry out as a whole among other in the organization. Having a good internal control system in place protects an organization from high risk, fraud, and more. Jackson Memorial Hospital has several weaknesses which are similar to its competitors and other health care organizations. For instance, Mount Sinai Medical Center one of Jackson Memorial’s competitors, encountered lack of strategic planning that led to many issues such as with readmissions, surgical complications,

Over the past years, “the healthcare sector of our economy has grown rapidly”, (Cleverley, Cleverley, & Song, 2011, p. 10). In order for healthcare organizations (HCOs) to survive in our financially changing healthcare environment, they must be economically stable. The understanding of the effects of economic developments on finance is more important than ever. By understanding the financial and economic implications of our economic system, healthcare organizations will be capable of securing economic stability. When trying to stabilize financial security in healthcare capital planning is the best approach. If the working capital is not managed efficiently, the flow of money gets choked, raw material supplies interrupted, wage payments delayed,

Selecting the most appropriate strategic plan is essential for an organizations continuous growth and development. Specifically, looking at the health care industry, Cedars-Sinai Medical Center is a world renowned medical facility, that provides high quality health care services to their patients. This consists of everything from direct patient care to research studies. As a non-profit organization, Cedars-Sinai Medical Center is still a revenue generating business. With that being said, as a business they are required to analyze various tendencies in order to make the best decision that is most beneficial for the organization, the patients and all other stakeholder’s. By identifying Cedars-Sinai Medical Center’s

If you get health services from a doctor or hospital that is not in the preferred network (known as going "out-of-network") you will pay a higher amount - perhaps a coinsurance of 20% or more. And, you will need to pay the doctor directly and file a claim with the PPO to get reimbursed.

Financial management is important to the organization because it provides pertinent finance and accounting information to help managers accomplish the purpose of the organization. Financial accounting provides accounting information to external users. On the other hand, managerial accounting is more for managers (internal users) to use for things like planning, budgeting, etc. The definition of finance has changed over the years, but it’s used to ultimately evaluate previous decisions and make assessments for future decisions of the organization.

Government financed health care typically has more control to place limitations on care offered to patients and doctors in order to keep costs down. Since payers must try to deliver the most care for the

In business there are strategies that need to be fulfilled. Starting a business or health care organization we need to use strategy planning. In the strategy planning of our business or health care organization we need to map out the mission, vision and goals that we want our business or health care organization to meet. My paper is going to be on the Veterans Health Administration strategy planning. This paper will review their internal and external assessments, competitive marketing analysis, identification of stakeholders, an overview and assessments of services provided, competencies and

Successful medical organizations have as their guiding principles a professionally stated purpose which encompasses and details their mission statement, vision statement, values statement, and broad strategic goals. The organizational structure is established on these statements, and the function of each department and the duties of each employee are based upon fulfilling the purpose of these statements. Additionally, these statements must encompass the various aspects of the organization and its stakeholders. As Moore, Ellsworth, and Haufman (2011) purport, “ Any organization planning as though it exists in a vacuum is ignoring factors critical for its survival” (p. 16). Without these guiding principles to serve as a direction for the

Google’s total assets have steadily increased dating back from 2008 to 2012. Some key figures to point out in their assets are the slow growth between the second half of 2008