For this case please discuss administrative, managerial, and financial, implications of the healthcare management problem you are addressing

For this case please discuss administrative, managerial, and financial, implications of the healthcare management problem you are addressing

Enhancing the quality of healthcare in the United States has implications both to the internal environment of every healthcare institution and system-wide changes to help in giving direction to all institutions. Howitt and Miller (2008) contend that if the healthcare system in the US is to be improved, then the healthcare institutions in their individual capacities must work towards coming up with consumer-friendly approaches so that apart from improving the quality of healthcare, there is a substantial cut in costs. Thus if the managements of every healthcare institution adopted a consumer-friendly approach it would help alleviate the problem that may arise as a result of the dramatic diversity in costs and quality throughout the country.

Given that most studies carried out point that high costs in the healthcare system in the country do not guarantee high quality services, there are a lot of changes that must take place. The greater part of the costs basically is expended in the covering administrative costs rather than providing high quality services (Howitt and Miller 2008). The management would have to gear towards adopting more effective procedures. Such effective must check the over-usage of diagnostic tests which have little to do with enhancing the quality of care. By employing the economic incentives to enhance quality in the healthcare will require managerial adjustment to ensure that the incentive schemes are well managed to fit the solution of the problem. Additionally, administrative tools need to be well employed to make sure that there is sufficient financing which is not only fair but shared across the stakeholders. Administratively, improving the effectiveness of the healthcare system means that the strategies put in place must have a universal sense and be geared towards reducing the growth in health care costs (Right, 2008).

There is also another implication considering the public’s desire for liberation from the continuously rising health costs. This brings in a financial implication on the part of medical health insurance. Affordable health insurance must be extended to all. In addition, more finances will be required to align the incentives to reward high quality, efficient care and to further organize the health system so as to achieve accountable and coordinated care. Still more finances are needed to be channeled to public reporting, evidence-based medicine, IT and any other infrastructure that may be required to ensure delivery of the best care (Kilo, 2005).

Financial commitment is also necessary to help in exploring the establishment of a national body whose goal is to set goals for perking up health system performance and come up with recommendations for best practices and policies. Howitt and Miller further note that there are enormous savings that would result from intermarriage of  universal coverage with proper reform and boosting investment in better information systems as well as adopting initiatives to boost public health. In a period of ten years, Howitt and Miller add, the nation could save about $1.6 trillion. To add to this, another $9- 368 billion of savings are indicated to arise from the potential health savings.

Reference List

Howitt K., and Miller, M., (2008). Our Health Care Dollar: Improving Quality to Cut Costs: The first in a series on consumer-friendly approaches to cost containment Community Catalyst

Right, S., C., (2008). Rising Health Care Costs: Implications for the Health and Financial Security of U.S. Families, Invited Testimony, Committee on Finance, United States Senate Hearing on “High Health Care Costs: A State Perspective?”

Kilo, C. (2005). Transforming care: Medical practice design and information technology. Health Affairs, 24 (5): 1295-1300.