Question

Due to Coronavirus describe the financial impact of this Pandemic on the health care setting and how the Healths Care administrator will manage the budget with this new inquired.

Answer 1

Coronavirus or covid-19 has caused lots of atrocities across the world, claimed many valuable lives and dumped the economy to the verge of a crash. This pandemic has affected most of the industries in the world particularly health care industry.

HEALTH CARE INDUSTRY:

This industry is basically compeletly dependent on people especially through hospital visits and pharmaceuticals. This was one of the profitable sector in most of the time like in the case of medicine business and the hospital cases. However, this industry is now facing a huge difficulty due to this pandemic.

FINANCIAL IMPACT:

Financial position of the healthcare sector has under performed because of the covid-19 problems. That is cash flow in the sector was very less during these periods for example) most of the hospitals has cancelled the important surgeries or operations which were bringing lump sum amount to this industry has stopped.

Expenses of the hospitals has increased because of salaries to high staffing numbers and the immediate requirements of personal protective equipments.

Challenging economic condition would also bring less cash flow to the healthcare because there will be lay-offs, rasing unemployment result in loss of health benefits. People start to relay on government health policies and programs which again adversely affect this sector.

MANAGING THE BUDJET FOR THIS PANDEMIC:

Obviously this is a challenging job, However in order to withstand administrator has to make certain changes like Taking loans in this situvation would help the sector to withstand in this situation because most of the central banks have reduced thier interest rates and making the loans available to the needy(subjected to the rules and regulations of the bank) or if that hospital is a big conglomorate they can issue IPO in order to tackle the funding issues in the coming years. Promoting the profitable surgeries after the pandemic therby multi- hospitals can bring in cash to mitigate the losses.

However,Making sure that all the employees particularly doctors and nurses get the pay check without delay, this is to be budjeted properly on every hospitals. Rather than charging high margins on masks and sanitizer ,sell these on nominal margins which help to build hospital brand .