Question

In: Finance

Examine and discuss moral and fiscal dilemmas that healthcare managers’ face in driving revenue, and capital...

Examine and discuss moral and fiscal dilemmas that healthcare managers’ face in driving revenue, and capital purchases. Give suggestions for how these might be addressed and ameliorate

Solutions

Expert Solution

Revenue is the source of income, which comes out of the pocket of healthcare beneficiaries (like a hospital patient). Those beneficiaries are from any income level (like rich or poor). Charging high to poor class of people may not be ethical, and at the same time the discrimination of rates between rich and poor is not justifiable; therefore, earning revenue by establishing a fair rate is a moral dilemma.

Managers face fiscal dilemma on capital purchases. It happens because of blocking of money or the burden of payment liability. Suppose a healthcare instrument is under consideration that is very costly; if this is taken through loan, the company has to pay in future together with interest. Since a healthcare unit doesn’t have profit motive, recovering such burden by charging high to patients can’t be done; it makes dilemma whether to purchase or not.

Suggestions:

(1) In case of moral dilemma, there should be the minimum rates for all beneficiaries; these rates must be reviewed and amended time-to-time. Such lower rates attract more and more beneficiaries, which ultimately increases revenue up to the desired standard.

(2) Fiscal dilemma could be removed by taking lease of capital assets. This is like rent, paying on recurring basis, and there should not be any hassles of repaying the loan amount.


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