Money Management in Healthcare essay

Abstract

The research explores the opportunity to solve an existing problem in the healthcare system of the United States. In fact, the problem refers to the ability of the governmental and health care authorities to manage their funds. The aim is to understand the way the hospitals and the US government, in particular, could manage their money more effectively in order to help people. The study covers the evidence of the problem and discusses the anticipated solutions in the form of a proposal bill to the U.S. Senate. In particular, it refers to the use of the superior money management practices applied in order to improve the existing position of health care in the United States. The paper refers to the problem of money management as the inability of the US government and the local American hospitals to manage their funds properly. As a result, the US citizens face various problems while paying for the health care services that may cause negative consequences for the future development of the American economy. By considering the change management perspectives and the cost-benefit analysis, the researcher offers the most appropriate solutions to improve the healthcare system of the country. The idea is to help the American nation to live healthier lives and add more value to the society.

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Money Management in Healthcare

The role of wealth management in the health care industry is quite challenging today. As of 2015, the vast majority of patients were not in a favorable position to pay their medical bills. In 2015, only a few initiatives of the US government were initiated to improve the current healthcare spending. Actually, the money management processes have an enormous impact on the overall cost of health care services all over the country. According to the recent surveys, more than fifty percent of adults take advantage of various plans that could help them improve their medical expenses. Therefore, it is important to improve the current position of the healthcare industry. The ideal solution would involve the evaluation of other businesses and of the models, which they use to manage their funds more efficiently. Thus, the ideal solution should enhance the existing healthcare spending management system all over the United States.

According to the statistics on the national health care spending, a great amount of money is invested in this enterprise. Besides, people do not receive many health care benefits in return. Based on the latest statistics on both mortality rates and health care position in the countries, the United States hold the last position in the rank among the most developed countries all over the world. In fact, these countries are Japan, China, France, Italy, Germany, Brazil, Australia, Canada, Spain, and the UK. Based on the calculations of the experts, United States wastes around thirty percent of investment in health care. In other words, the wasted amount amounts to around $750 billion every year.

The problem of the health care industry is the fact that it is hard to search for such information and compare the solutions offered by different physicians across the United States. Moreover, there are no true prices available for the particular health care procedures or tests, including the quality of the health care providers. Thus, the lack of transparency in the medical sector results in wrong medical decisions made by the Americans that are important to improve their health. Finally, the overall healthcare situation in the United States reflects the lack of transparency concerning both pricing policies and the quality of the health care services offered to the public.

Problem Statement

The problem of inaccurate money management in the US is apparent, when considering the average hospital stay. In general, the Americans pay around eighteen thousand dollars of the hospital costs. On the contrary, the same cost per stay in the OECD nations is nearly six thousand dollars. The problem of inefficient money management policies in the United States comprises a long-lasting process of adding more value to the price of the end products offered in the hospitals. The problem involves the manufacturing costs, distributors, and all the other intermediaries that make all the medical institutions charge people more money for the average hospital pharmacy.

Moreover, the average prices for the most demanded medications are tremendously high for the American citizens, who receive contemporary US wages. Besides, the expenses of similar medical services are completely different. For example, in Oklahoma, the replacement of a hip would cost around five thousand dollars, but the same service would cost more than two hundred thousand dollars in California.

The problem of improper money management directly relates to the inefficient waste of the health care expenditure. Such a waste happens since the American health care system lacks proper coordination of the health care costs and US citizens lack medical literacy. Thus, the contemporary US healthcare industry wastes billions of dollars annually. According to the data from the Price Water House Coopers Health Research Institute (HRI), the waste of the health care investment refers to the following three broad categories: behavioral, operational, and clinical:

  • Behavioral: The American citizens cannot properly manage their health, which results in various incorrect health care behaviors, and, thus, the citizens cannot escape from many health issues. The vast majority of Americans do not search for the healthcare solutions, when the illness is at an early stage of development. Therefore, the final cost of remedies and medical treatment becomes more expensive in the long-run.
  • Operational: There are many unreasonable administrative and other related expenses, which add more waste to the annual US health care expenditure.
  • Clinical: Many health care professionals add more waste to the health care spending, while requiring various unnecessary tests and medical procedures. Thus, they fail to take advantage of the best medical treatment considering an evidence-based medicine at an appropriate time.

In fact, such a state of affairs in the United States health care industry lacks transparency. The US citizens appear to be unable to purchase the health care services in a similar way they could buy vehicles. In other words, every health care cost requires considerable research and understanding that the recommended medical solution is highly reliable and efficient to deal with the particular health problems. The same approach of buying a car should be used, while searching for the best appropriate medicine. The process of identifying the solution requires some research and comparison of the available options needed to make the best appropriate decision.

Literature Review

The existing position of money management in the health care industry makes it necessary to develop suitable measures in order to improve the situation in the country. The idea is to decrease the level of costs and overall expenditure in the medical sector. Today, many medical organizations face an intense financial pressure. Such a pressing situation relates to the high regular health care costs across the country. The most relevant solution to this problem is to cut the overall health care expenses and save money with the help of layoffs and the reductions in personnel.

Moreover, it is important to take advantage of the lean management practices that could improve the quality of the health care services for Americans. The experts think that such an approach is one of the best solutions to apply, when compared to the layoffs that take place around the country. At the same time, the health care organizations should participate in different processes that could help the medical institutions to manage their funds more efficiently. In fact, the idea is to avoid all the possible expenses that add more value to the health care investments. Thus, the healthcare organizations will be able to decrease the undesirable traditional costs that lead to layoffs and undesired consequences for patients.

The health care companies could also reduce the costs of their services by decreasing fixed medical processes that usually cost more. Such an approach will also help the medical institution to reduce the level of risk, while serving their patients; it will ensure a higher quality of the health care services and overall safety for people. Based on the situation, the health care organizations are willing to improve the ways they manage funds to break the current health care cycle of wasted investment.

Actually, the U.S. government invests a significant part of the gross domestic product to health care industry, which is approximately three trillion dollars annually. However, more than seven hundred billion dollars are wasted. Moreover, every average American spends nearly eight thousand dollars on healthcare every year. Such a position of the money management practices in the United States turns out to be a burden for the country and its economic growth. In addition, it has an adverse impact on the development of local small businesses and their competitiveness in the target market.

It appears that the Americans are not getting any healthier with all the investment of the government towards the health care industry. The proof of such a situation is the fact that the United States is far behind other industrialized countries in life expectancy, obesity rates, and infant mortality. Moreover, millions of US citizens do not have sufficient insurance coverage for the health care expenses. Many people strive to pay their medical bills and millions of them are in medical debt.

Ultimately, the government does not take care of the money management strategy regarding coordination, healthcare literacy, and the waste of medical resources. Such a situation results in the lack of transparency that contributes to the enormous health care costs in the United States. Other aspects of uncontrollable money management procedures correspond to the inefficient use of medical technologies, uninsured pharmaceutical growth, and unhealthy lifestyles of people. Moreover, it refers to the ineffective structure of the primary care offered to the US citizens all over the country. Finally, it reflects the lack of standards that could ensure the consistency of the medical industry.

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Proposal for Change and Cost-Benefit Analysis

The most efficient ways of using lean management best practices to improve the overall money management procedures based on the cost-benefit analysis are mentioned below:

  1. Decrease the events that do not occur. Many health care institutions are in the position to have the unnecessary activities for the patients. Moreover, they do not add any value to the health of patients and their well-being. In fact, it comprises the number of expenses on infections, unnecessary amputations, and even minor tragedies that cost a fortune for the health care organizations. By decreasing the number of unnecessary activities, the medical institutions will be able to serve their patients in a better way. It will also help them to reduce the financial pressure that occurs due to the governmental health care restrictions. It is important to acknowledge that the Medicare no longer pays for the medical events, since they are considered needless for the patients. Actually, it applies to both private and public health care organizations. Therefore, the medical institutions could improve the process of serving the patients by repositioning them all over the state hospitals that could offer more help. Such an approach will help the hospitals to save their funds and avoid unnecessary layoffs. In addition, the events that never happen can increase the overall quality of serving the patients throughout the country.
  2. Enhance the supply chain operations. In fact, it is necessary to use efficient materials, which can improve the process of supply chain operations. The idea is to make the process of providing the medications more frequent. Such an approach will help the hospitals to decrease the space for storing the healthcare drugs across their warehouses. Such process could also assist the medical institutions in minimizing the cash related inventory operations.
  3. Cancel the expansion processes. Many hospitals take advantage of the lean management practices needed to manage their financial resources. The idea is to decrease the capacity of the health care institutions with the help of existing equipment and affordable working spaces. It helps the medical institutions to use all the available resources more efficiently, which ultimately increases their overall capital spending. Such improvements could have a substantial positive impact on the hospital by helping them to serve more patients annually. The purpose is to reduce the time spent for the registration and to improve the utilization ability of the hospitals at the same time. Thus, it is not required to purchase any new equipment. Instead, the health care organizations could take advantage of the available equipment and serve their patients with a greater care. It is one of the benefits of the money management practices that could be applied all over the United States hospitals.
  4. Lessen the overtime hours. One more way to manage the money more efficiently is to decrease the overtime hours. It is an excellent opportunity to improve the money management practices that could help people to manage their finances. Besides, the vast majority of individuals are willing to spend more time with their families during the evening hours on a regular basis. The process of improving the registration of patients could decrease the time of serving them and will ultimately lead to the decreased overtime hours. Such an approach will increase the satisfaction of employees and result in better money management practices. Therefore, it is a win-win solution for the American government and its citizens.
  5. Diminish the length of patients stay in the hospitals. Such an approach does not mean sending people home before they feel fine. Instead, the process of decreasing the time of the patient stay in the hospital could be managed by preventing the mistakes of doctors that could extend their stay. It is important to help the patients discharge, when they feel better. There are many reasons why such medical errors take place. Some of them correspond to the miscommunication between the patients and doctors. The others refer to the inability of physicians to plan the process of curing patients. In fact, it usually results in more days of staying in the hospital and ultimately increases the health care expenses. Thus, it directly relates to the ability of the government to control the money management processes at the medical institutions all over the country. In fact, such mistakes of the hospitals result in millions of additional costs to both the government and the patients.
  6. Condense redundant diagnostics and testing. Many health care organizations do not take care of the unnecessary testing and diagnostics for patients, which represent a precise example of the improper money management procedures. Therefore, the governments and hospitals should consider the need to avoid the inappropriate use of laboratory diagnostics and additional testing procedures. In other words, the application of the best money management practices could help the health care system to benefit from decreasing the excessive costs and remedial efforts. Ultimately, it will help the patients to recover faster, while meeting all the medical needs.
  7. Reduce billing errors and consequent delays. Today, the hospitals face a problem of a great number billing issues that happen on a regular basis. Thus, taking care of the flow of patients will help to handle them more appropriately and in a timely manner. It will decrease the chain of patients substantially, which will inevitably reduce the contemporary billing errors. In fact, the compound loss of American patients and the US government counts in millions of dollars. Hence, all the parties involved in the process should take appropriate measures to improve the billing procedures, which will help to avoid delays in the payment and will save millions.

Summary and Conclusion

The medical impoverishment is the unfortunate truth about a wealthy nation; thus, the United States and the US government should strive to deliver all the forms of the national health insurance in order to improve the situation in the global marketplace. The goal should be to enhance the system of money management, which leads to the overspending of the investments. Many national authorities are not informed, where their money go and whether they could add more benefits to the American society.

In fact, $750 billion of wasted investments appear due to the inefficient use of costs aimed at improvement of the health care industry. It includes an inefficient delivery of health care, comprising the unnecessary administrative costs, unnecessary medical services, exaggerated pricing policies, and a fraudulent system of money management. Actually, it mainly relates to the operations of the federal government regarding the pharmaceutical industry. In fact, thirty-five percent of the US citizens are not capable of paying their health care bills. At the same time, around two-thirds of the US bankruptcies relate to the inability of people to pay their medical bills. Such a situation has various reasons and the biggest problem corresponds to the health insurance issues.

Besides, the US citizens are highly overcharged across all the health care costs. It is important to acknowledge that even non-profit hospitals are more profitable than the ones that work on the for-profit basis. The health care system has a wrong approach, as it charges low-income families and people without any health insurance with the total inflated price. Simultaneously, the families, which have some health care coverage, manage to decrease the level of money spending due to the reduced health care rates.

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Money Management in Healthcare essay

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