In the U.S. health care expenditures are increasing rapidly with no signs of slowing down. According to Zerwekh (2015) “Currently, the united States is spending 18% of its income on health care” (p.358). There are many different intrinsic and extrinsic factors that have contributed to the uprising cost of health care including, characteristics of the population, employer-paid health insurance, demand for health care, prescription drug cost, availability of technology, and workforce costs (Zerwekh, 2015, p. 356). There are several demographic, social, and political trends that impact the economy of health care. According to Zerwekh (2015), “During the projection period of 2009 to 2019, the Baby Boomers (citizens born between 1946 and 1964)
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The systems theory focuses on the interactions and associations between inputs, transformation of material, outputs, and feedback in order to understand an entity’s organization, functioning, patterns and outcomes (A Brief Review of Systems Theories and Their Managerial Applications, 2010). The process starts with input. Input is anything that enters the system from the environment. For the healthcare organization this could include; patients, the healthcare team, money, resources, efforts, and/or materials. Once the input enters the system it goes through the process throughput, which is the transformation of materials. During this phase the input from the environment is converted into output (A Brief Review of Systems Theories and Their Managerial Applications, 2010). Output is the final product or service of the system. Lastly, there is the feedback loop. This is the environmental reaction to the output that determines future input. The system is built by energetic input-output where the energy coming from the output reactivates the system, if patients are dissatisfied with the service or quality of care, they will not return; thereby deceasing the input and vice versa (A Brief Review of Systems Theories and Their Managerial Applications, 2010). Using the systems theory is a good approach to help reduce costs within an organization. By looking at the healthcare organization as a whole, we are better able to understand how each part contributes to the rising cost. This approach provides the best theoretical basis on all diverse parts included. We are able to see what areas need change and why (A Brief Review of Systems Theories and Their Managerial Applications,
The systems theory focuses on the interactions and associations between inputs, transformation of material, outputs, and feedback in order to understand an entity’s organization, functioning, patterns and outcomes (A Brief Review of Systems Theories and Their Managerial Applications, 2010). The process starts with input. Input is anything that enters the system from the environment. For the healthcare organization this could include; patients, the healthcare team, money, resources, efforts, and/or materials. Once the input enters the system it goes through the process throughput, which is the transformation of materials. During this phase the input from the environment is converted into output (A Brief Review of Systems Theories and Their Managerial Applications, 2010). Output is the final product or service of the system. Lastly, there is the feedback loop. This is the environmental reaction to the output that determines future input. The system is built by energetic input-output where the energy coming from the output reactivates the system, if patients are dissatisfied with the service or quality of care, they will not return; thereby deceasing the input and vice versa (A Brief Review of Systems Theories and Their Managerial Applications, 2010). Using the systems theory is a good approach to help reduce costs within an organization. By looking at the healthcare organization as a whole, we are better able to understand how each part contributes to the rising cost. This approach provides the best theoretical basis on all diverse parts included. We are able to see what areas need change and why (A Brief Review of Systems Theories and Their Managerial Applications,