Hcs 577 - Healthcare Comparative Summary

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Financial management in for-profit hospitals and non-profit hospitals are often similar given they have a core duty to ensure quality standards of services and continuity of the facility. However, they are significantly different in the orientation of resources. In private nursing homes, they will be keen on expanding their investment portfolio. On the other hand, the non-profit hospitals, they are interested in the management of the working capital but prudently utilizing scarce resources (Halverson, 2005). All hospitals, however, inculcate viable financial management practices in mitigating any form of risk. This is critical in checking a solid financial background. These hospitals need to keep their income stable through financial decision mechanisms that are well established. It is upon this principle that these facilities can undertake long-term investment decisions. Contracting of employees and other third party partners is an essential financial management practice capable of mitigating unprecedented fallouts and loss of staff loyalty. Lastly is the financial planning and appraisal. Hospitals must have sound systems of financial reporting to give a very present financial image of the entire institution at any given time (Gapenski, 1999).

Health care financial management is a difficult task given the dynamics of healthcare. Already, opinion is split on whether hospitals should be keen on profits or service delivery. There is a consensus about the need of quality health care in all facilities. However, the need to sustain such quality demands resources which hospitals must raise in various forms (Gapenski, 1999). The private nursing homes, in particular, are less on options except to charge high rates to meet their financial responsibilities. On the other hand, federal government hospitals are low on resources and the bad debts make it even worse. Medicare and Medicaid principles in federal hospitals have left the institutions under heavy burdens of uncompensated care from public payers. This is similar in charitable hospitals. Further, health care financial management is complicated by the difficulty in sharing information. This slows the speed of skill transfer due to challenges in collecting data. The health care system is moving to the value of service as a new parameter rather than the number of people treated. The financial management has been slow in effecting such changes as to create an appraisal mechanism on the value and quality of care (Boyer & Hammersla, 2001). Ultimately, despite the challenges, financial management in different health care environments presents a unique case of opportunities and challenges that must be confronted in an effort to increasing efficiency (Morrison, 1999).

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References

Boyer, D. F., & Hammersla III, W. E. (2001). U.S. Patent No. 6,208,973. Washington, DC: U.S. Patent and Trademark Office.

Campobasso, F., & Kucharz, J. (2012). Developing healthcare facilities for a changing environment: healthcare organizations should consider financial goals before deciding on real estate strategies. Healthcare Financial Management, 66(5), 102-107.

Gapenski, L. C. (1999). Healthcare finance: An introduction to accounting and financial management. Health Administration Press.

Halvorson, G. C. 2005. “Healthcare Tipping Points.” Healthcare Financial Management (March): 74–80.

Morrison, I. 1999. Health Care in the New Millennium. New York: Joseph Wiley & Sons.