The Financial Crisis Striking The Heart Of Hospitals Across The United States

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This paper will explore the financial crisis striking the heart of hospitals across the United States. We will examine the circumstances in which a few extreme cases may have to close their doors permanently. We will scrutinize public financial data to review possible factors that may contribute to the financial difficulties America’s health care facilities face.
Many healthcare systems across the country are experiencing large deficits because of monetary shortfalls caused by inadequate patient payments, rising cost of healthcare equipment and supplies, expanding labor cost, and third party reimbursement. The purpose of this study is to observe these factors, and explore how hospitals will handle growing challenges. We will review what…show more content…
As hospitals continue to experience some financial difficulties, there is a growing concern that institutions will compromise quality care to ensure survival. Hospitals wrestle with strategies to counter the effects spawned by revenue loss and the possible rippling effects upon the surrounding communities. We will study how hospitals generate the revenue they require to operate their services. The purpose is to identify the key reasons they are experiencing such a drastic decline from primary and secondary revenue sources.
The method that we used to collect the data for this research were surveys given in the form of formal interviews. Interviews were conducted with several hospital administrators across the United States. The questions were crafted with the intention to learn what are the root causes of the deficit. We also obtained existing data from Medicaid, Medicare and private insurance companies. This data contained yearly contracted rates and yearly disbursements. The information was measured against the hospital actual cost to provide basic health service to patients. We also measured the hospital expenditures for the patients covered by these companies to actual receivables. This information allowed us to determine that third party payments did not offset the actual cost of services performed.
At least eighty percent of the hospital’s budget
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