Managing financial operations within a healthcare facility is one of the jobs that are not related directly to addressing patients’ needs yet are critical to the functioning of a facility. In an interview with M., who is a Financial Analyst at a local hospital, a range of factors that affect M.’s performance and the allocation of the facility’s financial assets came into light. Particularly, the interview has shown that there is a need to introduce a coherent framework for examining the issues that define the number of expenses that a hospital faces, such as hospital bills coverage.
Moreover, the interview results indicate that hospitals experience significant pressure due to the necessity to reduce costs, at the same time keeping the quality of services high. Therefore, a sustainable approach toward managing finances within the healthcare system is required.
According to the responses of M., the Patient Protection and Affordable Care Act (PPACA) affects the organization and its financial processes to the greatest extent. Because of the necessity to provide reimbursements in accordance with the principles set by Medicaid, hospitals face significant challenges in maintaining the quality of care consistent. In new taxes, PPACA has led to immense costs due to the rise in the taxes for individuals (Auerbach, Heaton, & Brantley, 2014). The specified trend is a reason for major concern for FAs in a range of small healthcare facilities nowadays, according to the respondent.
The interview results also indicate that M., would change the current policy regarding the management of disadvantaged and remote communities’ needs. While being present, they do not provide enough resources for assisting people that do not have immediate access to care. As a result, a significant amount of hospital resources is misallocated since it could be used to help the specified demographic.
However, the respondent also admitted that there were some policies that would help them to improve their job, including both environment and the performance levels. For example, the opportunity for doctors and healthcare organizations to charge their patients separately allows avoiding a range of confusions and can be seen as a generally positive financial policy in the modern healthcare. In addition, it is desirable to introduce the policies that will allow making the cash flow consistent and sufficient for the hospital’s needs.
As a result, an FA will be able to consider financial opportunities that are currently unavailable for healthcare organizations such as hospitals. For example, an FA will be able to build sound financial projections for future operations and allocate current financial resources accordingly. Thus, an FA will implement the principles of strategic cost management and create additional opportunities for underserviced communities.
Moreover, the adoption of the specified financial policies will allow a healthcare facility to implement a shared risk model, which will offer more chances for cutting costs (Leger & Dunham-Taylor, 2017). Thus, an FA will contribute to the design of financially sound and sustainable strategies.
A DPN can also exert influence over the specified issue. Particularly, a PN can encourage a shift in the current policies toward the management of financial resources within a hospital. Thus, the process of managing costs will become more sustainable, and the needs of underserviced populations will be taken into account. A DNP can promote the introduction of the shared risk model mentioned above and use the appropriate leadership techniques to prompt a shift in the current framework of managing hospital costs. Thus, a sustainable use of organizational resources will be established as a strategy.
Because of the rise in demand for quality and the need to reduce costs and allocate hospital resources more sparingly, healthcare facilities are facing a number of problems currently. From an FA’s perspective, the specified issues are likely to have a tremendous effect on the quality of the provided care and the opportunities for caring for disadvantaged communities. Moreover, some facilities may fail to face the pressure of contradicting requirements and collapse economically. Therefore, financial support is strongly needed for healthcare facilities that struggle to maintain quality rates high.
Auerbach, D. I., Heaton, P., & Brantley, I. (2014). How will the Patient Protection and Affordable Care Act affect liability insurance costs? Santa Monica, CA: RAND Corporation.
Leger, J. M., & Dunham-Taylor, J. (2017). Financial management for nurse managers (4th ed.). Burlington, MA: Jones & Bartlett Learning.