Question

Please answer the following question in 250word count in your own word and thoughts please.

Finance is the study of how businesses allocate money over time. With the implementation of the Affordable Care Act, it is posited that financial management will become more complicated. Do you agree or disagree? Explain the rationale for your response.

Answer 1

There is complexity with Affordable care act for the following reasons:

• There is a long history of relying on private sector markets & resorting to government regulation & provision of services only where markets fail. This pro market mindset has given a high standard of living but makes governance complex. In the case of healthcare the commitment towards market has prevented from adopting a national system to provide for universal healthcare as many countries did. This is considered to be a simple approach. But instead the employees relied on the employers to purchase health coverage for the employees in the private market with the government filling the gaps.
• The second reason for the complexity is the federal structure. As the country is a big diverse country that were formed by the sovereign states we still fear on central government power & rely on the states to formulate & execute domestic policy. Though the federal system has much strength it is considered to be very complicated.
• The other financial challenges on this would include uncollectable emergency department charges & other bad debts, decreasing inpatient volumes, competition from other providers, cuts in government funding, rising costs, inadequate funding for capital improvements. There are hundreds of millions of operating & capital budget dollars that are being invested in order to standardize the process, eliminate waste etc.