Issues and Cases in Healthcare Finance

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Issues and Cases in Healthcare Financing and Administration Assignment: Identify one or two items that are impressive about a feature that has the most affect on the cost of healthcare. What would help to control costs? To review the overall cost of health, all the pieces that play into the expense need to be considered. A starting place for the exercise in consideration of what item(s) would help to control the cost of healthcare for me was to identify the support structure of the healthcare system contributing to the cost of the delivery of healthcare. • Fixed costs (i.e. Buildings, Utilities, etc.) • Administrative Support (i.e. Billing, Administration, etc.) • Providers (Physicians-all specialties, Nurse Practitioners, Physician Assistants) • Nursing Support • Technology • Outside support (medical supplies, pharmaceuticals, software and hardware, vendors, etc.) • Competition for Provider Human Resources • Payers Of all the items listed above, my experience has been that the largest percentage of any budget in healthcare is targeted for human resources, i.e. staffing. This line item typically represents approximately 50% of the total operating budget. IT support is quickly rising to be another line item to take notice of. Although a much lesser portion of the total operating budget (approximately 7%-10%), Information technology has a direct alignment with human resources the potential for cost savings. Interestingly enough, in my opinion, these two have the potential to either work very well together or have the completely opposite effect on any healthcare delivery system. Looking at the human resources expense, it would make sense to consider how that portion of the equation will ultimately be the most effective part of the solution. Human resources consist of administration, providers of all levels and support staff at all levels.

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