Question

It is the start of the Flu Season and we are still in the Covid-19 disease's clutches. Financially what has happened to the healthcare industry to this date? What are the future financial implications for healthcare organizations if, now, we have two separate but similar diseases confronting us? There is a whole lot to consider operationally for both healthcare organizations and for communities.

Part of being an effective healthcare manager is a proactive approach that anticipates events that impact your healthcare organization and community. For example; Knowing that there is this "double whammy" of SARS (Covid-19 & Flu) do you order additional Flu vaccine; the DCD has recommended that vulnerable populations receive two doses of the flu vaccine; one in October and one in January. But Flu vaccine supplies dwindle out in the new year.

So what to do? Do nothing and become overwhelmed (POTENTIALLY) and have increased expenses/costs or take preemptive actions?

Answer 1

As a health care manager, some of the important factors that need to be considered before taking decision.

1. Is there any increase in the cost during the period?

2. Is any shortage of inventory during the period?

3. Is there increase in the demand expected for the product?

Answering the above questing will enable the manager to take the right decison

1. Is there any increase in the cost during the period?

Ans: Yes there will be increase in the cost of transportation and cost of research and innovation. Employee productivity will be low and total output will be less. So the manager need to keep the sufficient stock of vaccines so that it should miss match required demand.

2. Is any shortage of inventory during the period?

Ans: Yes, there will be inventory shortage because, due to issue relating transportation of material from one location to other location. Manager need to ensure that sufficient materials are kept to boost the production.

3. Is there increase in the demand expected for the product?

Ans: Yes, there is a increase in the demand due to double whammy" of SARS (Covid-19 & Flu) and also vulnerable people need to given two vaccines in the month of October and January. However in the month of Januaray vaccine expected to dwindle out.

Keeping all the factors above as a health care manager need to take take preemptive actions to ensure the balance between demand and suppy.