please I need long and typed answers (600 words or more) Describe the current fi
ID: 389110 • Letter: P
Question
please I need long and typed answers (600 words or more)
Describe the current financial environment in healthcare and its influence on decision making.
In Unit 1 we discussed an integrated delivery system and how it consists of a number of different types of healthcare organizations, such as hospitals, clinics, and nursing homes, owned and operated as a single entity. Although integrated delivery systems offer the opportunity to coordinate all aspects of patient care under a single “umbrella,” their complexity makes the overall management process much more difficult than in smaller organizations that focus on one type of service.
Utilizing your textbook and the Library:
Briefly describe the following healthcare settings:
Hospitals
Ambulatory care
Home health care
Long-term care
Integrated delivery systems
What benefits are attributed to integrated delivery systems?
What are the challenges/drawbacks to implementing integrated delivery systems?
Explanation / Answer
Financial environment of healthcare organizations:
The physician environment in the healthcare industry is the one that absorbs around 20% of the healthcare expenses. Prescription drugs are another segment. This is because prescription drugs is the one that constitutes of 12% of per capita healthcare expenses & is projected to have the largest growth rate in the coming years. Similarly annual growth rates in spending for nursing home care has been cut in recent years as there has been change in reimbursement method.
The hospital derives more than 50% of its total funding from public. Medicare is the one that is expected to contribute 30% of revenue for the hospitals. Some hospitals also ignore Medicare because of its sheer size. Another 34% of funding for the hospitals comes from insurance. Direct payments by patients are estimated to be 3% of revenue. Federal government pays more than 50% of Medicaid expenses. Medicare payments to nursing home are restricted to skilled nursing care. But majority payments to nursing homes are for intermediate care.
Hospital is defined to be healthcare organization that provides patient treatment with specialized medical, nursing & medical equipment. There are general & specialized hospitals. General hospitals are those which can provide all kinds of services ranging from fire accident to heart attack. Whereas specialized hospitals provide services such as trauma centers, pediatric, psychiatric etc. specialized hospitals involves lower costs when compared to general hospitals. Hospitals can be general, specialized or government depending on their source of revenue.
This is provided on outpatient basis including diagnosis, observation, consultation, treatment, rehabilitation services etc. this can include advanced medical technology & procedures when provided outside hospitals.
Home healthcare can include care provided by skilled medical professionals which includes nursing care, physiotherapy, speech therapy etc. this can also include skilled non medical care such as medical social services or assistance with daily living from highly qualified home health aide. This is unique because the care is not only provided at home but also less expensive, more convenient, effective etc.
Long term care is nothing but which offers variety of services that included both medical & non medical needs of people with chronic illness or disability who cant care for themselves for long periods.
This is defined as logical integration of healthcare as opposed to fragmented system or disorganized lack of system. It refers to any specific network of healthcare organizations constituting a corporate group that attempts to integrate care to some extent. Hence to briefly describe this is an organization that provides continuum of healthcare services.
Advantages:
The benefits of integrated healthcare system can include increased market share, more secured physician income & also better quality of life for physician, financially stronger organization, enhanced ability to adapt to the changing healthcare environment, the return on investment is also considered to be substantial.
Drawbacks:
There can be operational difficulties, regulatory challenges, unclear financial attribution & cultural inertial. It also requires carefully developed partnerships, finance structures, information technology platforms which can be limited in scale due to cost or complexity
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