Introduction
The Adventist Health System provides services to millions of people in its work of extending the healing mission of Christ. The Porter Adventist Hospital in Denver follows the Adventist principles of health care and offers both basic primary health care and has specialists’ centers with staff to deal with complicated cases reported. In order to serve the patients and give them the right treatments, there are some strategic assets used in this health facility. There are several ventilators for critical care, ultrasound machine for diagnostics, due to several cases of direct patient care there are several cardiac monitoring devices, and other IT equipment which take good care of the patients’ information which is very crucial for his health life. The hospital also has a heliport approved by FAA for emergency cases, PET scanner in its Bimolecular Imaging center, general and specialized surgery equipment, organ transplant equipments and an Eye diagnostic laboratory. In the year 2007 the Adventist Health System recorded total assets of 7373.7 millions. The organization offers full time availability with enough staffs and efficient equipment.
Risk contracting arrangements within the organization
The main theme of Porter Adventist Hospital is to offer the best health services and save a life as it has a mission of extending the Healing Ministry of Christ rather than maximizing profits. Through better financial management in any health care facility, there is a possibility of achieving quality services and efficient as well as competent service providers to the community (Cleverly & Cameron, 2007). Between the year 2004 and 2008 the organization earned revenues between 4379.2 and 5384.8 millions. For the year 2007 the total revenues were 5194.8 millions and total expenses of 4834.6 millions leaving net income of 360.2 for that year. The net income has an increasing trend since 2004 to 2007 as follows; 236.2, 251.4, 325.4, and 360.2 millions
Differences between a risk contract and a non risk contract
Porter Adventist Hospital has adopted a system of transferring financial risks and care management accountability to a physician group. All the types of capital and the risks associated with it are taken care of. This arrangement has got both limitations and rewards, whereby some percentage of approximately 95% of the average adjusted per capita cost for everyone who has enrolled is paid to the physician groups (Abbey, 2009). This contributed finance is the one used to cover for any risk which may occur. Through the use of risk contract agreement the IDSs givers are not subjected to the oversight of medical management programs practiced by health management programs.
The risk contract as well gives the IDSs some assurance of a certain rate of payment and a chance to get greater financial compensation from a reduced utilization. In a non-risk contract Medicaid pays the contractor some amounts which may not exceed what a Medicaid would have given out based on the service received at hand. Non-risk contracting the Medicaid contracts with the plan which saves him from buying the services with fee at hand (Abbey, 2009). The non-risk contracts are known to provide several management services to their employer clients, therefore representing a larger market than the risk contracts.
Negotiating a risk contract
There are several considerations which any organization should address when negotiating a risk contract. To begin with, the organization should size up things including their potential contract partner (Patel & Mark, 2006). The project underlying the contract should be investigated thoroughly to avoid future disputes. The organization should ensure that all the contract documents are clear in their definitions in terms of responsibilities to be undertaken, and all the requirements from the beginning to the end. There should be clear communication between the two parties to avoid misunderstandings. All the persons to be involved in the contract should have enough experience concerning the matter in question. The organization should have the ability to break from any risk contract with unreasonable and uncompensated risks. The organization should be in a position to establish its negotiating position, and learn how to keep both contracts and terms of contracts as something private and confidential.
Reducing financial risks in a risk contracting
In risk contracting, there are several ways through which the financial risks may be reduced. To be in a better position a contract risk assessment survey should be conducted so as to point out the most sensitive areas to be emphasized (Patel & Mark, 2006). All the legalities should be adhered to, and ensuring that the risk contract is managed and run effectively. All the information involved with procedures of the risk contract should be well understood, to have a better consistency and improve the efficiency of risk contracting. Through inadequate risk contracting practices, several financial risks are encountered.
The original signed contracts documents should be kept safely to avoid misplacement and great losses. The organization should be very careful in engaging into any agreement of signing contracts which are unfavorable and not straight forward. The legal counsel should be involved to provide advice on matters concerning the risk contract before any document is signed (Patel & Mark, 2006). This will enable any procedure to be legal reducing the risks of losing some benefits or finances. Within the organization the unauthorized employees should not be allowed to sign contracts as this would end up committing the organization financially and legally. With wide research of information before entering into contract and following the right procedures saves an organization from major financial risks.
Reference List
Abbey, C.D. (2009). Healthcare Payment Systems: CRC Press.
Cleverly, W. & Cameron, E. (2007). Essentials of Health Care Finance, Jones & Bartlett.
Patel, K. & Mark, R. (2006). Health care politics and policy in America, M.E. Sharpe.