Question

Health care administrators today and in the future will be faced with numerous complex issues to consider when making strategic and financial decisions. Elaborate on some of the complex issues health care administrators today are facing in making financial and strategic decisions.

Answer 1

Answer.Business strategies and financial management are intertwined. In present the hospitals were buying up neighboring physician practices. Doctors who sell their practices become employees of the hospital, and the hospital becomes a regional hospital system. That way, the hospital builds a larger and steadier payment stream: It gets money from the entire spectrum of medical care, from tests to surgery to rehabilitative services. Acquiring a practice brings in new revenues right away, so the revenue stream helps pay for the purchase, and the regional hospital system, which is much larger than the hospital alone, has more bargaining power with health-insurance companies. BUDGET CONSTRAINTS : Health care administrators hire staff, create and maintain budgets, oversee operations, organize office duties and help with fundraising efforts. Due to budget constraints at many medical facilities, a health care administrator also performs functions that aren't necessarily part of her job description. She might create reports concerning national health trends, research how government and hospital board decisions will effect the community, and think of cost-effective ways to provide basic care for those who need it most. ETHICAL ISSUES : Health administrators face ethical challenges. Some patients refuse to comply with a doctor’s orders, demand to have life-support terminated despite family wishes, and expect extensive care even if they have terminal illnesses. Health care administrators must determine how to best allocate limited resources to serve those who are most likely to recover from serious injuries or sickness. Administrators must keep every patient's best interests in mind and make tough ethical decisions, while working within the boundaries of limited resources. LACK OF INTEGRITY : Administrators must deal with physicians, insurance companies, pharmaceutical companies and medical equipment companies that don't always put the patient first. Some medical facilities require unnecessary tests and perform superfluous procedures just to generate more revenue, says Kadrie. This lack of integrity often leads to higher health care costs for everyone. Thus the above are some of issues that are facing by health care administrators facing in making financial and strategic decisions.