Health Care Spending Analysis
Grand Canyon University: HCA-530
November 19, 2014
Health Care Spending Analysis
Health care spending in the United States has been on a steady rise with no signs of slowing down. It is also the highest among developed countries in the world. Although Americans spend the most on health care, this does not translate into the best care available. Many developed countries outrank the U.S. in quality and access of care. Before the Affordable Care Act came along, many individuals and families would forgo purchasing insurance premiums due to the high costs and only utilize emergency rooms when in need of care. Health care reform ideally will address ...view middle of the document...
How these HCOs go about communicating with the community and encouraging wellness could cost them more than they spend outreaching. There are pros and cons but hospitals still stand with the potential to make even more money than before albeit with less opportunity for major profits (Leopardo 2013).
Perspectives and Responsibilities
A HCO’s financial management team has many roles that can be separated in two categories: Controllership and Treasurership. Controllership roles include establishing budgetary systems, reporting and interpreting financial statements, evaluating and consulting cost analyses, submitting Medicare bills and cost reports, internal procedure development to protect assets, and analyzing financial statements to appraise economic health (Cleverley, Song & Cleverley 2011). Treasurership roles include maintaining investor relations assisting in analysis of appropriate dividend payment policy, providing short-term financing by arranging lines of credit, establishing billing, credit and collections policies, choosing investments by analyzing capital investment projects, and managing self-insurance program funds to provide insurance (Cleverley et al. 2011). Bearing in mind national spending is so high and with the impending health care reform finance departments and their staff must find more ways to lower costs by adjusting to the new laws and work with operations management to create, maintain and revise procedures and self-regulation policies to reach their respective goals.
Rules and Regulations
In present day, the goal of any HCO should be to strive to provide better quality affordable services, increase access to care, improve the health outcomes of their patients and its community all while reducing costs and spending. Much easier said than done. Though reducing costs and increasing access seem counterintuitive, it is possible. For example poorly coordinated care leads to 5% of the U.S. population accounting for nearly half of total health care spending. The majority of this small population has high costs because of complex chronic conditions like diabetes, obesity, and heart disease in addition to undiagnosed or misdiagnosed mental health problems. New regulations that will penalize hospitals for high readmission rates by reducing payment for services will create incentive for hospitals to implement systems to reduce preventable readmissions. Quality coordination of care can help patients transition to home life with home-health services or recommend assisted living, nursing homes or rehabilitation facilities instead of simply discharging potentially at risk...