DECISON MAKING IN HEALTHCARE FINANCE 3<\/p>\n
Running head: DECISON MAKING IN HEALTHCARE FINANCE 1<\/p>\n
Decision Making in Healthcare Finance <\/p>\n
Milestone One<\/p>\n
Kimberly Sheard<\/p>\n
HCM 615 16TW5<\/p>\n
Southern New Hampshire University<\/p>\n
Decision Making in Healthcare Finance<\/p>\n
At present, financial management plays an extremely important role in the management of any business including the healthcare sector. Generally, the functions of financial management in healthcare are planning, acquisition, and utilization of funds to maximize the value and efficiency of the industry (Kahan, 1999). The financial decision-making impacts both a healthcare quality and a continuous quality improvement in many ways. The organizations widely consider an implementation of CQI mostly because it can increase the potential of achieving the health promotion goals. In addition, it is expected that in the near future, following the procedures similar to CQI will become a requirement of government and the other funders. Although CQI does not produce any goods and is not necessarily a service, it contributes a lot to the increase of a customer satisfaction rate in the healthcare (Kahan, 1999). <\/p>\n
The financial decision-making in healthcare should encourage collaboration among the clinical and nonclinical departments with the purpose of guiding strategic short- and long-term decisions because the cooperation in this area can bring some very positive outcomes. <\/p>\n
Overall, the major advantages of the partnerships are its ease of formation and low costs. One of the good examples that may illustrate the concept is the American Hospital Association and its state organizations, such as the Florida Hospital Association that function as one major hospital trade association (Gapenski & Pink, 2007). In addition, there is also the American Association of Equipment Lessors, a trade group for the firms that lease various equipment to the industry of health services (Gapenski & Pink, 2007).<\/p>\n
Since the provision of the healthcare is very much different from the rest of services, the quality outcome payment incentives are a very important influencing factor. It improves both the quality and patient experience for several reasons. First, many providers are investor-owned, yet the others are arranged as not-for-profit corporations (Gapenski & Pink, 2007). Therefore, payment for medical services depends, and typically is made by some third parties, not by patients receiving the services. In spite of this, the healthcare providers should have an appropriate incentive to promote the quality of health, rather than simply treat the emerging illness and injury since a healthier population eventually consumes fewer healthcare services.<\/p>\n
The pressure to improve the cost-effectiveness and quality of care delivery in the healthcare organizations gradually increases. Thus, it becomes very important to develop the managerial solutions that will enable the organizations to stay profitable on the transforming market. Among the efficient managerial solutions that may transform the patient care into more positive financial outcomes, there can be named the following. First, the care delivery models should be centered around value rather that the volume of the healthcare services (GE Healthcare, 2014). Next, it would be good to connect the data across different organizations for them to have access to the patient populations (GE Healthcare, 2014). Also, the implementation of IT monitoring solutions could potentially ensure the high quality of delivered services. <\/p>\n
One of the most critical processes that the healthcare organizations need to improve to achieve a success is the revenue cycle management. It is a financial circulatory system in the health care organization that consists of a number of clinical and administrative functions (Gapenski & Pink, 2007). These functions contribute to the management, capture, and collection of the patient service revenue. In other words, it is the full circle of life of any patient’s account. The characteristics of RCM are the use of technology to record and keep the patient claims, ensuring the collecting of payments, and addressing any denial issues. The revenue cycle starts at the moment a patient makes an appointment and lasts till the payments are collected, and it plays a very important role in the financial decision making. <\/p>\n
References<\/p>\n
Gapenski, L. & Pink, G. (2007). Understanding healthcare financial management (5th ed.). Chicago: Health Administration Press.<\/p>\n
GE Healthcare,. (2014). Financial Management Solutions. GE Healthcare. Retrieved 19 August 2016, from http:\/\/www.gehealthcare.com\/Financial_Mgmt_Brochure_JB22861US.pdf<\/p>\n
Kahan, B. (1999). Continuous quality improvement and health promotion: can CQI lead to better outcomes?. Health Promotion International, 14(1), 83-91. http:\/\/dx.doi.org\/10.1093\/heapro\/14.1.83<\/p>\n","protected":false},"excerpt":{"rendered":"
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