Question

Discuss the four strategies for dealing with financial uncertainty as they pertain to the impact COVID-19 has had on health care.

The four strategies being 1) Dynamic Budgeting, 2) Aggressive Cost Management, 3) A portfolio approach to managing payer contracts/relationships, and 4) Investment of growth of telehealth and telework.

Answer 1

The four strategies for dealing with financial uncertainty as they pertain to the impact of covid-19 on the healthcare are as follows-

A. Dynamic budgeting- budgeting is often accused of being a rigid in nature and they do not have flexibility but, At the uncertain times of coronavirus,there is a need to be a very high degree of flexibility adaptation in the budgeting which will be helping in synchronising the need of the organisation with the external environment so there will be a need of dynamic budgeting.

B. Aggressive cost management- aggressive cost management is related to management of cost which will be relating to cutting upon various cost aggressively which is resulting into excessive cost to the company and it will even mean losing out on various employees in order to cut the salary cost so it will be helping the company in order to stay liquid by generating profits and cash.

C. Portfolio approach of managing payer relationship- portfolio approach of management of the payer contract will be helping the the healthcare organisation in order to manage with the high level of cash and liquidity upon its hands and it will also provide them with a larger flexibility during these times of uncertainty.

D. investment of growth of telehealth and telework will be helping these companies in order to to look for better growth opportunities at these times of pandemic and they will be trying to digitalised themselves in order to optimise most out of this uncertainty and maximize their rate of return.