NURS 6211 Week 1 Discussion – Healthcare Spending Essay
Healthcare Spending
There are critical elements to financial management. These elements are planning, controlling, organizing, and decision making (Baker, Baker, & Dworkin, 2018). Leaders should possess the knowledge and understanding of the organization’s structure. It is also important for leaders to understand how finances affect the organization (Baker et al., 2018). There is should be a balance between the cost of health care and quality of care.
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Consequences of Current Levels of Spending
The cost of health care has increased tremendously and is expected to continue to increase. Health care spending increased by 4.8 percent in 2016 and is projected to increase an average 5.6 percent (Alliance for Health Reform, 2013). The United States leads in health care spending (Alliance for Health Reform, 2013). Policy makers are focusing on increasing the cost of prescriptions and value-based pricing. The spending has increased because of the population growth and inflation (Alliance for Health Reform, 2013). The aging population and the fact that persons are living longer due to advances in medicine are increasing the costs of healthcare. NURS 6211 Week 1 Discussion – Healthcare Spending Essay
Insurance plans that are provided to lower-income individuals on government programs also add to the stress of the costs of health care (Alliance for Health Reform, 2013). The increased cost of health care affects workloads and patient ratios. This has a direct effect on quality of care and patient safety (Dickson, Bulley, & Oliver, 2014). Rising costs also influence compliance with medications as some person may not be able to afford prescribed medications (Dickson, Bulley, & Oliver, 2014).
Potential Consequences of Reducing the Level of Spending
Reducing the level of spending would not only reduce the costs of care, it would positively affect the quality of care and reduce waste, procedure, and other unnecessary items. To reduce costs, the focus should be turned to pharmaceuticals, imaging, administration, and high margin and volumes (Emanuel, 2018).
Stakeholders that should make Decisions
Policy makers are the ones whom currently make decisions about health care spending. These decisions should made by a more collaborative group of individuals from all areas and aspects of the health care system. Decision makers should include various health care professionals, patients in the community, and policymakers. Reimbursement for services should also be based on the quality of care and not the amount of services provided. This will eliminate the unnecessary tests and procedures (McClellan, 2011). NURS 6211 Week 1 Discussion – Healthcare Spending Essay
References
Alliance for Health Reform 2013 Cost of health care. in covering health issuesAlliance for Health Reform. (2013). Cost of health care. in covering health issues (6th ed.). Washington, DC 201905282242321845634818
Baker J J Baker R W Dworkin N R 2018 Health care finance: Basic tools for nonfinancial managersBaker, J. J., Baker, R. W., & Dworkin, N. R. (2018). Health care finance: Basic tools for nonfinancial managers (5th ed.). Burlington, MA: Jones and Bartlett Learning. 201905272222461967696429 NURS 6211 Week 1 Discussion – Healthcare Spending Essay
Dickson J K Bulley S Oliver D 2014 Efficiency and perceptions of cost in healthcare.Dickson, J. K., Bulley, S., & Oliver, D. (2014). Efficiency and perceptions of cost in healthcare. British Journal of Healthcare Management, 20(5), 222-226. 201905291835201367781878
Emanuel E J 2018 real cost of the US health care system.Emanuel, E. J. (2018). The real cost of the US health care system. JAMA, 319(10), 983-985. 201905291907271817942262
McClellan M 2011 Reforming payments to health care providers: the key to slowing healthcare cost growth while improving quality?McClellan, M. (2011). Reforming payments to health care providers: the key to slowing healthcare cost growth while improving quality? Journal of Economic Perspectives, 25(2), 69-92. 20190529194153917900562 NURS 6211 Week 1 Discussion – Healthcare Spending Essay