Question

How does organizational architecture in healthcare management impact decision making and control? What types of control systems are important in Healthcare management?

Answer 1

The health care environment of United States is one of the largest and most complex in the entire globe. The health care structure sector in the United States consists of an array of hospitals, clinicians, and other health care facilities, numerous insurance plans, and buyers of health care services, all the segment operating in numerous configurations of groups, networks, and independent practices. Few of them are based in the public sector; others operate in the private sector acts as either for-profit or not-for-profit entities. The health care sector also consists of regulators, some voluntary and others governmental. Although these various organizations and individuals collectively often referred to collectively as "the health care delivery system," the phrase reflects an order, integration, accountability and decision making that do not exist in the system. Collaboration, communication, or systems planning among these various entities is limited and is almost incidental to their operations, thus if these are planned effectively it will help to improve the overall profitability. Hospital leaders can decrease supply costs by approaching physicians to make fiscally responsible supply decisions and working with vendors to improve contracts.

The elimination of redundancies or ineffective regulatory practices is a vital step to control the costs and ensuring the best experience for both sides of the equation. Moreover creating a transparency in pricing to avoid the inadequate explanation for the cost and the feeling that hospitals seem to charge at random.