Health Care Organizations and Delivery Systems


The health care industry has intense growth in the world; it is the industry that always deals in pact with the clients. Health care is an important tool and it is believed that when health is lost, something is lost. Health providers take the utmost care and they are industrious in terms of health provided to the people. As the current era is that of technological advancement, different technological innovations are in vogue in the contemporaneous health care industry.

Cost of implementing new computer programs

Computer programs trigger off new trends in the health care industry; it is the sector that computes different costs that are incurred in the implementation of major technological tools in the health care sector. There should be a keen focus and systematic approach in the implementation phase and during the selection of what should comprise the most efficient and effective tools for the healthcare industry.

Assessment has to be done well and financial planning should be done well in advance before its ultimate implementation. Different kinds of costs are to be considered. First, the total cost for the project has to be considered; it consists of costs like implementation cost, hardware cost, maintenance cost, licensing cost, and so on. The hardware costs that need to be identified are data center space cabling and power back up, special power requirements, and different kinds of hard wares that are to be used in the process and infrastructure to be used in recovery and cost of certain subsystems that are being operationalized.

The licensing cost is that which consists of license charges on the operating system, the ongoing maintenance system and the fee for service applications and software providers. The HR costs are the main costs which are incurred in hiring of managers, coordinators and different cadres of staff associated with company’s operations and marketing of products and services.

HIPPA training

The laws of US prioritize on care and protection of the healthcare needs of the people. “HIPAA stands for Health Insurance Portability and Accountability Act” (What is the meaning of HIPAA? 2010, para.1).

The main aim of HIPAA training is to give priority to private rules and regulations of the people and providing healthcare through different electronic media, which emphasize on health insurance coverage. The US Government spends a lot of money on healthcare and 20% of the GDP is spent on health care. Under the present government headed by President Obama, health care would be receiving prime importance in budgetary allocation and financial restructuring programs. “Embedding these longer-term goals into policies for short-term economic recovery will not only make it more likely that the longer-run goals will succeed, but will also greatly enhance the effectiveness of short-term recovery efforts“(Ash et al, 2009, p.3).

Training consists of expertise, manpower and planning and assessment which are highly expensive. The costs for the affected organizations are considered to be very high. “Surveys project upgrade costs to vary from $10,000 for a small private practice to $14 million for a larger organization (Nunn, McGuire, 2005). The average cost of $3.1 million from surveyed firms is considerably more expensive than the projected average estimate of $450,000 that was done prior to implementation“ (Arora & Pimentel, 2005, p.3).

Different kinds of costs during training

The different kinds of costs that are incurred during training are:

Administrative cost: Administrative cost covers organizational cost as a whole and the cost in the upcoming policies, recruitment and training. It includes continuous analysis of the firm to identify the different complexities in modern health care business.

Technical security costs: Technical security cost consists of costs that deal with new technological innovations, safety and security measures that are in practice in the organizations. It includes annual maintenance cost.

Physical costs: Physical cost consists of different kinds of cost for creating the physical privacy cost that deal with safeguarding data of the patients, the main aim is to avoid unnecessary access cost. In addition, some of the hospitals also need to deal with new tools, thus creating additional cost implications.

The cost incurred in creating the environment includes transaction cost and those incurred to comply with legal formalities, registration and the making up of environment. Costs incurred in hiring of health providers and the environments also figure.


The discussion on different kinds of cost gives a clear picture on how the costs are to be planned and analyzed in dealing with financial aspect before implementation.

Reference List

Arora, R., & Pimentel, M. 2005. Cost of privacy: A HIPAA perspective. 17801 – Privacy Policy, Law and Technology. Web.

Ash, M., et al. (2009). A progressive program for economic recovery & financial reconstruction. Schwartz Center for Economic Policy Analysis, The New School. Web.

What is the meaning of HIPAA? (2010). eHow. Web.

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