Health Care Organizations Essay
Cost is the driver that will most likely cause healthcare organizations to merge. Most healthcare organizations have issues with spending. Most industries today are faced with a variety of obstacles in achieving or remaining profitable. The healthcare industry is no exception. Profitability is enough of a challenge under normal circumstances, but especially so during fragile economic times. Uncertain revenue streams and rising costs have many healthcare organizations understandably apprehensive.
Traditionally, hospitals were more focused on managing revenues rather than on costs to insure …show more content…
Despite a history of strength and stature in America, the hospital institution is in the midst of massive and disruptive change. Such change will be so transformational that by 2020 one in three hospitals will close or reorganize into an entirely different type of health care service provider. Several significant forces and factors are driving this inevitable and historical shift. (David houle, Jonathan fleece, March, 2012)
Predict the financial stability of the health care industry over the next five (5) years. Provide support for your prediction.
As the economy recovers, health spending is likely to trend upwards, though growth rates are unlikely to return to the double-digit levels we have seen in the past.
The analysis attributed most of the current lag (77 %) to economic factors, but predicted that Obama Care could play a role in bending the healthcare cost curve in future years.
"Our analysis suggests that over time, the economy is by far the biggest determinant of changes in health spending overall.(Elsie Viebeck,april,2012)
The economic burden of aging in 2030 should be no greater than the economic burden associated with raising large numbers of baby boom children in the 1960s. The real challenges of caring for the elderly in 2030 will involve: (1) making sure society develops payment and insurance systems for long-term care that