The Challenges Of Profitability And Cost Management Essay example

1296 Words Sep 23rd, 2015 6 Pages
Health organizations remain under intense pressure to reduce costs and to repair inefficiencies. Profitability and cost management is imperative for healthcare insurance providers. This is being driven by both regulatory requirements and competitive pressures. Effectively addressing the challenges of profitability and cost management involves mastering a methodology, understanding the business drivers, changing business processes, and introducing a system that supports an efficient process. The impact of profitability and cost management ripple through to all management processes and is a key component of an overall enterprise performance management system. Healthcare is important to everyone. Receiving quality care when needed to ensure a long and healthy life is a basic tenet of life in the United States. Securing the correct solution that balances financing and quality care is now the subject to great debate in the United States. With the Healthcare Reform Legislation of 2009 the US government has sought to ensure that all Americans have access to affordable quality care and insurance, however the legislation is meeting resistance by some states. Providers struggle to deliver quality care at a reasonable price. Insurers struggle to provide a fair and affordable funding solution. Government officials are trying to balance the needs of all participants to ensure a viable, long term, stable solution. The traditional model of how healthcare benefits are provided is…

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