Healthcare costs are a huge issue for many Americans across the nation. Healthcare is one of the most complex and multifaceted industries, and the factors influencing its high costs are likewise complex. This essay will discuss the healthcare cost factors impacting inpatient and outpatient facilities (Patel & Rushefsky, 2019). Additionally, it will look at potential hospitals or healthcare facilities, define their financial structure, and talk about the accompanying expenditures. Finally, it will describe how healthcare administrators may have a good or negative impact on these costs.
Numerous and linked factors influence healthcare expenses. The aging population is one of the main causes. Baby boomers are becoming older and need more medical care, which raises the demand for healthcare services (Atella & Kopinska, 2019). The expense of healthcare goes up as a result of this rising demand. Medical technological improvement is another important aspect. Even though medical technology has improved patient care and outcomes, expenditures have gone up as a result. Modern medical innovations like robotic surgery and high-tech imaging necessitate large expenditures on employees, equipment, and infrastructure. Ultimately, patients and insurance companies are responsible for covering these expenses.
Costs have also increased due to the healthcare system’s complexity. Billing, insurance, and compliance all have considerable administrative expenses. Cost demands on inpatient and outpatient hospitals are distinct. Due to the increased personnel levels necessary to offer 24-hour care, inpatient institutions are more expensive, whereas outpatient clinics often have lower operating expenses (Patel & Rushefsky, 2019). The deal place of employment is a nonprofit hospital or healthcare center. Healthcare nonprofit organizations function as tax-exempt entities and are not concerned with making money for shareholders or investors. Instead, they want to give patients high-quality care while putting any earnings back into the business. Due to their lack of attention to making profits, nonprofit hospitals often have lower costs than for-profit ones. Additionally, they can be qualified for tax benefits and other financial incentives.
They may have a good or negative impact on expenses as a healthcare administrator. Process simplification in the administrative realm is one technique to cut expenses. Significant cost savings may be achieved by reducing the time and resources used for billing and compliance. Implementing preventative care measures is another approach to cutting expenses. Healthcare professionals can lessen the need for pricey treatments and procedures by emphasizing preventative care (Atella & Kopinska, 2019). On the other side, administrators can be inclined to scrimp on patient care to decrease expenditures. The organization’s reputation and patient outcomes may suffer in the long run due to cost-cutting efforts, even though they may temporarily boost the bottom line. Maintaining the highest levels of patient care while balancing cost-cutting strategies is critical for healthcare administrators.
In conclusion, the sector is currently experiencing enormous problems due to the complexity of the healthcare system and the factors that influence healthcare prices. Healthcare administrators must comprehend the cost-influencing components and how they affect inpatient and outpatient facilities. Administrators can save expenses by employing preventative care initiatives and reducing administrative procedures. But it’s crucial to balance cost-cutting measures and continue providing patients with the best care.
References
Atella, V. and Kopinska, J. (2019) “New Technologies and costs in Healthcare,” Oxford Research Encyclopedia of Economics and Finance [Preprint]. Available at: https://doi.org/10.1093/acrefore/9780190625979.013.68.
Patel, K. and Rushefsky, M. (2019) “The problem of rising healthcare costs and spending,” Healthcare Politics and Policy in America, pp. 283–358. Available at: https://doi.org/10.4324/9780429397875-8.
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