As statistics show, there has already been an increase in the cost of health care partially due to the shortage in health care practitioners and the need to offer higher reimbursement for treatments. If predictions are true, and there is a shortage of 125,000 physicians by the year 2025, the cost of health care will increase more rapidly. Because health care and therefore an individual’s life is considered priceless, there are demand shifters that often affect the demand curve of a health care product. As demonstrated in the example above, physician loyalties and experience are just two of the many types of demand shifters. This demand shifters can cause an even steeper rise in health care cost in the real world.
According to Rosenau, Lai, and Lako (2012), the United States health care industry P4P is one of the most important developments after capitation and managed care. The target of P4P is to change the behavior patients, physicians, and those working in the health care industry through a system of rewards and punishments. The P4P bonus for physicians can become the form of an add-on to his or her salary to the general fee-for-service. A bonus for a hospital can be additional payments beyond the payments received through the diagnosis group based payment. A punishment through the P4P system can end in the reduction of compensation or other penalties.
The coordination of patients is also poor which can result in devastating delays in diagnosis and treatment of patients. The community also has very poorly organized programs for cancer prevention and community education. Education is a key factor in the health of the community and getting early diagnosis of treatable cancers. Orthopedics As seen in the trend with oncology the orthopedic needs of the community are expected to grow by 46% in the next five years, with inpatient spine and joint procedures increasing by 30% and outpatient spine and joint procedures increasing by 350%. All of these numbers show a huge increase in demand.
AHIMA is also helping the health care sector by helping providers make better decisions with the use of analytics, informatics and decision support technology. Health care organizations will depend on HIM professionals as leaders across all healthcare sectors, with expertise in predictive modeling of clinical information, trend analysis, and revenue cycle management. (www.ahimafoundation.org, 2014). The stakeholder perspective for AHIMA is based on improving clinical documentation, improving patient encounters, and coding accuracy. AHIMA believes that hospitals and providers must improve clinical documentation in preparation for the expanded scope of clinical data beyond a single patient encounter to a comprehensive data set comprising the entire continuum of care (www.ahimafoundation.org, 2014).
However, not all of the new technology will successfully emerge into the health care system because it is very costly to implement. Consumerism and patient empowerment is also a change that has taken place and this involves the public having a higher expectation of the quality of service being provided. Recent studies reveals that patients are now demanding more information, and wants to be involve in the decision making when concerning treatment options. The demands for more information are supported by trends in ethics and law regarding patient autonomy and informed consent. Patients within the last
Case Study- Module 2 Lois Hammond June 8, 2013 One of the most important things that have affected employers’ costs for benefits is our declining economy. Employers are now facing the challenge of providing competitive benefits while also trying to contain costs (Wish 2012). Some organizations are making employers to seek less expensive forms of healthcare (Wish 2012). Employers are requesting that associates get 2nd opinions, shorter hospital stays, and more utilization of outpatient surgeries to cut benefit costs (Wish 2012). Employers are now requiring employees to spend more out of pocket for benefits due to the rising cost of medical costs.
Quality Management Assessment Summary Maria Cordero HCS/451 June 12, 2012 Lauri Rose Quality Management Within an organization quality management is a systematic and continuous process utilize to deliver products and services that can meet or exceed a customer’s expectations. However, in healthcare it has evolved over the years to address the increase demands of patient’s quality of care and services. And addressing the problems in patient outcomes. The healthcare field tends to utilize quality management to focus on the safety of patients and staff, the reduction of medical errors, and avoiding morbidity or mortality rates. To insure and improve the quality of a healthcare facility requires the entire staff to be educated on the definition
Health Care Reform Project Part I HCS 440 Bruce Peterson December 24, 2012 Summary The rapid population growth in the United States along with the continuously rising health costs makes managing the health care industry difficult. Because of technologic advancements both in healthcare services and medicine, people are able to live longer lives. However, as the aging population grows, more will need healthcare and more services will need to be provided. In the 1950s, not that many people lived longer than their 70s (Getzen & Allen, 2007). Furthermore, in the 1950s there were larger families so elderly care was more commonly given by family members.
| Hospital Turnaround Strategies Summary and Critique | James Langabeer Strategic Management – MBA | | | | SAHAR AL-JOBURY - ESLSCA 39E | Hospitals are failing at a faster rate despite higher profitability. Leaving decisions on revenues and costs to CFOs is wrong. Through a 4-year research and analysis of hospitals and health systems with a high probability of immediate financial crisis or collapse, the author found that a common series of actions will help organizations evade collapse. Hospitals are affected by free market forces, competition and other external factors. Management and strategy are to respond creatively to such factors.
On the other hand, the daily health care product demand from Out- of – hospital has consistently increased. In my opinion, this report must suggest how to optimize separated the responsibility of duty of the job between 3M and its VARs. Size-up: Item | So What ? | Shifting shares of health care spending in Canada | As the number of hospitals consistently decrease but it do not means the demand of health care products decrease. However, as opposite, the requirement of health product goes up.