Sutter Health Care Case Study

The United States health care system is highly characterized by the collection of revenues from the patients serviced. The collections of revenue allow health care facilities to acquire any equipment needed as well as pay wages to their employees. Insurance for healthcare assists this system with the insurance plans that contain high deductibles. “The situation is highly affected by the large population that has no healthcare cover. It has led to the system to collect revenue upfront so that institutions can be able to sustain themselves” (Souza & McCarty, 2007). On the other hand, the traditional revenue collection systems fail to meet the necessary revenue collection target established as this system contains many issues. This is the primary reason as to why Sutter Health chose to implement a new system to collect revenue. …show more content…
The system in Sutter health required hospital staffs members to estimate the potential cost and cashiers received the cash. All accurate information of the patient had to be first recorded by the patient services staff which proved to be a critical issue. “This was a major problem to the Sutter Health as the traditional payment system supported customer processing on the back end” (Souza & McCarty, 2007). This issue essentially caused staff to for ask the payment from the patients while they wait at the end of the line so the information could be processed. As imaginable, this lead to long, impatient lines being created which therefore, resulted in low-quality services being provided. Hours could go by before patients were able to see the doctor in order to receive the treatment that was needed. Along with the low-quality comes low revenue. This low revenue did not provide the capability to support the growing