Healthcare Finances: Challenges & Solutions - Essay Sample

Introduction

A majority of people think about the maintenance of health through focusing on prevention, treatment or diagnosis of injurious diseases, illness and other mental impairment. However, there is the need to focus on matters of finance and how financial problems affect the healthcare organization in satisfying patient and affording quality modern equipment to provide quality services to patients. Conversely, the healthcare organization faces quite several issues like a bad working relationship (Ali, Muhammad, 2013). On the other hand, in some healthcare facilities, the CEOs might have little communication with their CFOs and in such situations, the organization suffers poor decision making and lack of leadership support.

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Financial misuse is the primary challenge in healthcare facilities. Billing subjects the facilities to poor debt recovery. Consequently, the aspect results to colossal loan request that undermines the service delivery of the organization (Legido-Quigley & Helena, 2016). The organization has a board of finance that deals with finance issues where the budget is implemented and brought to them on time for discussion and approval. In most cases, CFOs are usually in charge of assessing the report and plan activities so that he can send it to the CEO. An aspect of togetherness promotes a better communication between the CFOs and the CEOs of healthcare organizations.

Every FISCAL year, a budget has to be prepared for the smooth running of the organization which is done by the CFO who spend time with each department for the better understanding of their services and department. In this case, a departmental budget needs to be developed, and all the departmental budgets avail themselves for the creation of an organizational budget (Stabile, Thomson,2013). Moreso, the Board of Directors needs to be involved and gain their support. Failure to this protocol the organization revenue cycle may break and as a result the organization will be unable to function due to financial constraints. For instance, with the improved technology, the healthcare organization provides quality services to the patient like protecting patient from potential harm by the safety and efficacy of the new technology.

Legido-Quigley, H., Karanikolos, M., Hernandez-Plaza, S., de Freitas, C., Bernardo, L., Padilla, B., ... & McKee, M. (2016). Effects of the financial crisis and Troika austerity measures on health and health care access in Portugal. Health Policy, 120(7), 833-839.

Stabile, M., Thomson, S., Allin, S., Boyle, S., Busse, R., Chevreul, K., ... & Mossialos, E. (2013). Health care cost containment strategies used in four other high-income countries hold lessons for the United States. Health affairs, 32(4), 643-652.

Ali, R. M., & Wajidi, F. A. (2013). Factors influencing job satisfaction in Public Healthcare Sector of Pakistan. Global Journal of Management and Business Research.