Financial Management for Health Care Organizations

The United States of America is currently facing a critical time in deciding the future healthcare system which is acceptable by a majority and affordable by all citizenry. Both financial institutions and other big hospitals are facing an economic hardship that threatens the collapse of the industry. If the situation is not reversed, then there is a dire consequence to chase as the majority will in the future, not afford any financial assistance nor be able to secure an insurance cover. The cost of healthcare funding is on the rise while on the other side, the revenue is decreasing due to the world’s worst economic downturn.

It is evident that there are more disparities in the health care sector of the United States. The conflicting agencies arise as a result of physicians demanding too much from the low revenue generated. If their pay is increased, then it adversely affects the spending of the sector. Physicians have in one way or another compromised the quality of service they offer. Some are biased in terms of color and race and sometimes, the social class hence a compromise of service delivery. This has adversely affected the role of physicians in providing professional and equitable services to all Americans.

Physicians are major decision makers within the healthcare industry. From economics to clinical departments, physicians must play an important role in effective healthcare financial management policies. Their preferences and personal factors determine to smooth running of the industry. (Ryan, Antiel, Farr, et.al. 2009, para 2-4)

To change this scenario, physicians can play two important roles which will be beneficial in the health care industry. The first one is of course professional and the second, participatory roles either in finance or management. For an effective healthcare system managed well in terms of finances and clinical conditions, physicians should never deviate from these roles. They ought to be paid well in return so that safe and quality services are given. Physicians are responsible for any financial recommendations made in the industry. The overall health care spending emanates from the suggestions made by physicians. They therefore, to a large extent understand how funds are utilized from care to therapy to treat. These roles influence the amount that organizations, insurance companies and the government will spend in outsourcing proper, equitable and quality services to patients. (Auerbach, 2009 para. 2-8)

Therefore, physicians can either decide to make the rate of spending high or acceptable by all. Physicians should provide and evaluate spending spree within the sector. Also, physicians should be at the front line educating their patients on preventive measures so as to avoid treating diseases which, can be prevented. Pharmaceutical and technology industries run by physicians must search for modalities and cost effective drugs which are cheap and affordable by all patients. Physicians on behalf of the patients can lobby for a system that allows compensation. Moreover, research should be carried out on cheap financial heath care services through well coordinated and managed patient care units. If these modalities are exhausted properly, the health care sector will be affordable without imposing high premiums.

The medical marketplace is a real market place as it is able to offer diversity of insurance covers. It is a marketplace since; there is analysis in terms of the supply and demand. For an effective United States health care system, markets which enjoy monopoly should be eliminated. This is the issue of contention in the current health care bill to be voted by senate. Those who object President Obama’s Plan do so by commenting that, the system will baby sit the less industrious Americans and increase taxes while making the system single-centered, hence, the government enjoying monopoly. (Feldstein, 2005, pp.323-381)

The rise is medical health care prices vary from one insurance company to another hence the same applies to the premiums received by these companies. The solution is to create an effective and competitive marketplace for a low premium service. All in all what the Americans need is an efficient, quality and manageable health care system by all citizenry.

In conclusion, about 18 million Americans are not covered by any healthcare insurance premium due to ineffective marketplace for health care services. As a result, millions are now subjected to danger while thousands are dieing each day due to poor policies that seem to benefit a certain social class. Effectual healthcare management contributes to a better health care system for the future generation. For this, the government has no other obligation other than to ensure proper health care financial management systems and efficient medical marketplaces.

Reference List

Auerbach, B. (2009). The Physician’s Role in Health Care Reform.commonhealth. Web. 

Feldstein, P. (2005). Health Care Economics. 6th Ed. New York: Delmar Learning.

Ryan, M., Antiel, M.A., Farr, A., Curlin, M.D., Katherine, M., James, M.P., & Jon, C. (2009).Physicians’ Beliefs and U.S. Health Care Reform.A National Survey. Web.

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