Principles of Healthcare Management - Dissertation Example

? DEBATE TIME This project is about the healthcare sector and focuses mainly on four aspects related to the healthcare industry. The four aspects include topics which are emphasized with respect to the healthcare sectors. The first scenario talks about the healthcare industry as any other normal business and not in particular. The healthcare sector is no longer regarded as a usual business but much more than it. The second scenario shows the role of the government in the healthcare sector during the hard time and the economic crises. The scenarios follow the conditions in the U.S. in particular, along with other developing and developed nations. The third scenario talks about the economic development with respect to the healthcare industry. It has been seen that the healthcare sector has proved to be one of the most booming sector in the present and in the near future and contributes about 10% of the GDP in an average. Finally, the fourth scenario talks about healthcare as shared vision. The paper ends through providing a set of recommendation along with conclusion with respect to the future of healthcare sectors. Contents Abstract 2 Introduction 4 Scenario 1 5 Business As usual 5 Scenario 2 6 Hard Times/ Government Pressure 6 Scenario 3 8 Healthcare as an economic development Issue 8 Scenario 4 9 Healthcare as shared vision 9 Conclusion 10 Recommendation 11 References 12 Introduction Healthcare organizations are generally divided into three groups which depend on the financial sponsorship that includes profit, non profit and governmental organization (Goldsmith, 2005, p. 39). The dynamics of the healthcare sector are both attractive and challenging. In the 21st Century, healthcare industry is the fastest growing sector with a market value of over trillion dollars. However, with changing global environment it has been noted that the healthcare sector has been quite slow in adapting to the new techniques and technologies. Delivering better and efficient healthcare services have become a challenge in the 21st century for the healthcare sector (Comstech, 2011). Thus, with respect to the growth of the healthcare sector, the concept of healthcare marketing is also at a rise. Healthcare marketing can be defined as the process which helps in understanding the needs as well as the wants of the target market. The main purpose is to provide point of view through which organization would integrate, analyze, plan, implement and control the healthcare system (Cooper, 1994, p. 9). The health industry in the year 2012 has been predicted to connect in many different ways with its consumers and wade through the regulatory, economic and also political uncertainty. It is one of the most pressing issues across the world. While regulatory reform, partnership of public and private sector, and technological challenges are just some of the concerned issues, the ageing population, chronic illness and cost control are some of the other major issues revolving round the healthcare industry (PWC, 2012). Scenario 1 Business As usual Healthcare policy tends to vacillate between the profit making sector and intervention from the government. The high cost of healthcare policies still remains unaltered. But it has been regarded that healthcare business is no longer a “business as usual” (Stewart, 2012). This is because business as usual is not a good option for the healthcare anymore. The high cost in the healthcare is mostly hurting the businesses as well as the families in need. Thus it becomes necessary for organizations to introduce health insurance at an affordable price without denying the patients and caring for the patients to the level they need. The reason behind the high price of health insurance policies is not the lack of competition among the insurance companies but the high price charged by the systems itself. An example to support this statement can be found in an investigation carried out by Massachusetts Attorney General which revealed that most of the large hospitals as well as group of physicians tend to charge twice the price as compared to other hospitals for rendering the same kind of services. The higher price however did not provide the patients with a high quality of service and care nor did those healthcare centers treated more number of critical patients. The only reason behind the increased charges was that big hospitals and famous physicians took the liberty to charge more prices for same kind of services rendered. The report also founded that the prices kept on increasing but there was no increase in the utilization (Miller, 2012). In Middle East countries, investment in the healthcare division is at its peak with commitment towards excellence in design and clinical department. Huge demand has gathered on the infrastructure of the healthcare in the Middle East due to growth in the population (World Health Design, 2010). Scenario 2 Hard Times/ Government Pressure With change in the global environment, the healthcare sector is undergoing major changes and the pressure to change seems to be constant regardless of the approach of underpinning towards the healthcare sectors. Therefore, paying for the healthcare sector has a long and also a complicated history. The hospitals, physicians, the nursing homes and the other types of healthcare sectors are all paid differently. Containing cost is the major focus in the delivery of healthcare services mainly with the growth of Medicaid and Medicare programs associated with the government as third party payer. Cost is one of the significant issues as the resources of the government are limited. To raise the amount of tax is never a popular option and the government had reduced its spending over other areas in order to keep up with the rising cost of healthcare (Raffel & Barsukiewicz, 2002, p. 45). The US is said to be the most developed countries which spends more on healthcare but the cost remains to be high. But despite the fact of spending a high percentage almost 13% of the GDP on healthcare but most of the residents still have limited access to the basic needs of healthcare (Shi & Singh, 2009, p. 11). In the highly competitive sector, the government plays a vital role and takes the responsibility of the ownership of healthcare, the mangers, workforce and others. The government provides support in the development of the knowledge and in the creation of tools which is needed to carry out the work effectively. The government conducts other channels such as medical school and education. Government at all the levels has intervened heavily in the healthcare sector. It has taken form of direct provision towards care and financing health insurance. The intervention of the government had a major effect on the resources which is devoted towards the healthcare centers and industries. But the government programs and its intervention had also resulted in failures. The real and major issue is thus the extent and the forms of involvement by the government and the difficulty lies on agreeing upon the objectives from many different policies and thereby selecting upon the correct value (Sherman, 2008, p. 446-447). But at the same time it has also been said that the healthcare industry is not just evolving through the intervention of the government but the healthcare sector is seen as a way towards life and not as a crises which is to be dealt in with the people. The visit of doctors has increased drastically and the employers are also supporting the healthy lifestyles through the incentives programs and also through initiatives such as employee education. Thus it can be concluded that opportunity is created through changes in the healthcare and also through changes in one own beliefs of the consumers (FranchiseHelp, 2012). The economic crises had posed serious threats in the effort to expand the required access towards a high quality healthcare system. Not only are the benefits related to insurance at risk but also is the availability of insurance providers. During the hard economic times it is much easy to forget the role that the government can play in the improvising of the healthcare sectors along with the quality of life. Scenario 3 Healthcare as an economic development Issue The role of the healthcare in the development of the economy has become an important issue in most of the communities. Healthcare is one of the largest sectors in the US and is likely to grow in the near future. And thus in all the community healthcare tends to play an important role in the development of the economy. It may be one of the dominant employers and also the source for the growth of the economy. There are several factors behind the importance and growth of the healthcare. Healthcare is important in the local economy in the current era and the leaders and the officials of the economic development must ask how it can ensure the growth and success of the healthcare sector. The policymakers as well as the residents should take into consideration some of the important factors such as diversification in the local economy; access to healthcare capital and development of the workforce. It is important to understand the issues related to the healthcare sector which further helps in the development of the economy (Western Illinois University, 2005). Most of the developing countries have also gained from the healthcare sectors. For example, China has also experienced a rapid growth rate in the economic and social development which has created a huge demand for a high quality of healthcare within the country. The life expectancy of the people has increased drastically and this it is expected that the ongoing trend would create the ageing population with chronic problems related to heath issues. The US have the largest service in the healthcare which represents a significant percentage in the economy. In the year 2010, the healthcare sector accounted to about $1.75 trillion in terms of revenues and employed over 14million people. The US Bureau of Labor Statistics has estimated that the growth in the healthcare industry would yield 3.2 million jobs between the financial years 2008 to 2018. The industry is thus supported with highly trained as well as skilled workforce and is also backed by the private sector of health insurance (Select USA, n.d). Scenario 4 Healthcare as shared vision Healthcare industry can be viewed from many different aspects and one such aspect is “healthcare as shared vision”. For a successful collaboration, a shared vision is very much important and essential. In the healthcare sector, the shared vision is to delivery of consumer centered quality care”. Development of trust and also respect for each other is essentials for an effective collaboration and should be core value for a collaborative organization. Good health tends to ensures that people are able to take advantage of economic, social and also of civic life in the society. A healthy environment allows its people to enjoy the food, water along with outdoor recreation without any fear of toxins or pollution. Thus, the challenges of acquiring and achieving the good health for the people are increasing. It is beneficial for those people also who do not have insurance and can find the cost of healthcare to be more than the capacity of the consumers. Efforts made by the public can make a huge difference in improving the health as well as the environment. The Budget and the Policy Center has thereby identified four source concerned with the matter. They include protecting the environment and public health; supporting and protecting the families and the children have; expanded the coverage of health insurance; ad care of those people with long term health requirements. A majority of the state invest upon healthy people along with the environment which goes in the expansion of health insurance, caring for those people who requires health needs and finally to protect the environment along with the children’s (Budget & Policy center, 2009). The concept of the shared vision is one of the most critical attribute for those who want to transform the organization. Shared vision tends to answer the questions as what is the main thing that one wants to involve or create within the community. Vision creates a sense of commonality, aims to provide coherence as well as connection towards the diversified activities and finally establish a sense of commitment along with responsibility as it tends to reflect the personal vision of the individuals. The transformation manger needs to nurture and create a shared vision for the organization and at the same time seek to generate creative tension between the reality and the vision in order o motivates the people to improve (Shortell & Kaluzny, 1997, p. 54). Conclusion With a rise in the global private investment in the equity, the healthcare sector experienced an exceptional growth rate. The value of healthcare equity was doubled from about $15 billion in the year 2010 to 30 billion dollars in the year 2011. The top ten largest healthcares tailed about $25 billion in the financial year 2011. The three major sectors of healthcare were the medtech, the pharmaceuticals, and the providers and services such as capture investor interest, but the growth level varied greatly. The healthcare spending accounts for nearly 10% of the Gross Domestic Product and in the United States the figure is much higher than any other developed or developing nation. It can be said that the US has been taking care and the healthcare sectors are of prime importance in the US. Healthcare spending has increased mainly because of aging population; in the year 2011 the baby boomers turned to be 65 in majority and by 2030 the percentage of population will have grown to about 13 to 18% respectively. With the life expectancies level raised to 80 years the healthcare has much more valid reasons to expand in the near future. Spending is further tied to treatment. In spite of the awareness of staying fit and healthy, almost a majority of the adults in the US suffer from overweight. Only few of them tend to exercise on regular basis and along with majority of the children. Thus, sedentary lifestyle along with overeating leads to increase in diabetes and other health related diseases. The government has played a very important role during the economic crises and thus has helped the healthcare to come up and flourish over the years. The healthcare industry is said to experience new growth with the adoption of new technology. Recommendation The healthcare industry being one of the sectors with high growth arete in the near future to come should invest properly in those sections which are needed by the common people. The healthcare industry can incorporate green as well as healthy buildings; the healthcare industry has the opportunity to flourish in matter with technology and can adopt the policy of mHealth. mHealth is regarded as the future of the healthcare industry which aims to deliver service much faster, better and at a less expensive ways. The government should involve more in the healthcare industry and, thus, take decisions regarding the future and the price of the physicians, as well as the hospitals. References Comstech. (2011). International Workshop on Healthcare in the 21st Century. Retrieved from http://comstech.org/Healthcareinthe21stCentury/tabid/1432/language/en-US/Default.aspx. Cooper, P. D. (1995). Healthcare Marketing: A Foundation for Managed Quality. Jones & Bartlett Learning. FranchiseHelp. (2012). Healthcare Industry Analysis 2012 – Cost & Trends. Retrieved from http://www.franchisehelp.com/industry-reports/healthcare-industry-report. Goldsmith, S. B. (2005). Principles Of Healthcare Management: Compliance, Consumerism, And Accountability In The 21st Century. Jones & Bartlett Learning. Miller, H. D. (2012). Regional Insights: Healthcare 'business as usual' not good enough. Retrieved from http://www.post-gazette.com/stories/business/opinion/regional-insights-health-care-business-as-usual-not-good-enough-304583/. PWC. (2010). Thought Leadership. Retrieved from http://www.pwc.com/us/en/health-industries/publications/top-health-industry-issues-of-2012.jhtml. Raffel, M. W. & Barsukiewicz, C. K. (2002). The U.S. Health System: Origins and Functions. Cengage Learning. Select USA. (n.d.). The Health and Medical Technology Industry in the United States. Retrieved from http://selectusa.commerce.gov/industry-snapshots/health-and-medical-technology-industry-united-states. Sherman, F. (2008). The Economics of Health and Healthcare. Pearson Education India. Shi, L. & Singh, D. A. (2009). Essentials of the U.S. Healthcare System. Jones & Bartlett Publishers. Shortell, S. M. & Kaluzny, A. D. (1997). Essentials of Healthcare Management. Cengage Learning. Stewart, K. (2012). No longer “business as usual” in healthcare. Retrieved from http://www.sltrib.com/sltrib/news/54353091-78/gawande-health-care-injection.html.csp Western Illinois University. (2005). Rural Perspectives - "The Role of Healthcare in Economic Development". Retrieved from http://www.wiu.edu/news/newsrelease.php?release_id=3745. World Health Design. (2010). Business as usual. Retrieved from http://www.designandhealth.com/uploaded/documents/Magazine/whdapril10.pdf. Read More