Description
Current Finance Issues in Healthcare
- Analyze a financial and economic issue in the health care industry.
- Choose a current financial or economic issue in the health care industry. Consider the following:
- What are the economic trends of the health care payment system?
- What are the supply and demand challenges for health care services?
- Why are costs increasing in the health care system?
- What regulatory issues are affecting, or will affect, the health care industry?
- Analyze the issue and its financial impact on the health care industry.
- Provide recommendations for improving the issue. Consider current strategies being used or presented for improving the issue.
- Include what you believe would be the outcome of these recommendations if implemented.
Explanation & Answer
Attached.
Running head: CURRENT FINANCE ISSUES IN HEALTHCARE
Current Finance Issues in Healthcare
[Author Name(s), First M. Last, Omit Titles and Degrees]
[Institutional Affiliation(s)]
Author Note
1
CURRENT FINANCE ISSUES IN HEALTHCARE
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Current Finance Issues in Healthcare
Healthcare faces countless financial challenges. For example, the costs of cybersecurity
and hackers’ attacks are around $5 billion annually. Cybersecurity drains the revenues of
hospitals and insurers (Morse, 2019). Besides the already mentioned costs, they have to pay
“fines from the Department of Health and Human Services Office of Civil Rights. In 2018, OCR
issued ten resolutions that totaled $28 million.” (Morse, 2019) The healthcare system involves
health services, health insurance, managed care, medical equipment and supplies,
pharmaceuticals and biotechnology, and other resources, educational institutions, business
related to healthcare, and public and private research agencies (Gapenski, 2004). The complex
relationship between all those factors directly impacts the finances of healthcare organizations.
However, the function of healthcare finance is to provide managers of healthcare organizations
the necessary information to perform different activities, such as planning and budgeting,
financial reporting, capital investment decisions, financing decisions, working capital
managem...