Healthcare Financial Reform - Research Paper Example

? Running Head: Healthcare Financial Reform Healthcare Financial Reform Introduction Healthcare systems include organization of institutions, people, and resources delivering health care services in aid of meeting health needs of a certain population (Baker, 2011). In many countries, health care system planning involves marketing of the products and distribution by the government. In other countries health system involves the activities of trade unions, charity organization, religion and nongovernmental organizations. Health care planning and reforms is not revolution but evolutional. Healthcare financial system should be reformed to ensure effective operation of the system. Health coverage should be available to each person even people with low income. The government alone can not provide enough funds for healthcare systems. For effective operation, healthcare systems need financial assistance from other organizations. The existing financial operations are not adequate, and that is why reform is needed. Taxation According to Karl (2010), one of the areas which need reforms is taxation. The current trend in taxation of healthcare services does not promote effectiveness of the operations. Many countries collect an enormous sum of money in taxation of healthcare workers, healthcare insurance and health facilities. The funds collected as tax can source other services in the healthcare systems. Many companies pay wages to their employees, but they do not pay insurance taxes. The employees take care of the insurance taxes which reduce income. The government does not spend the taxed amount in facilitating health services. Many states charge a huge sum of money as a form of tax to individuals establishing health care services system. Those systems include hospitals, clinics, dispensary, laboratory services centre and x ray units. In the establishment of those systems, the government requires a lot of money as tax. An individual also pays for other bills. This has made many people avoid opening private healthcare systems. In many states, the government healthcare services systems are many than private, and this leads to congestion in the hospitals leading to poor services. The government should revise the bills regarding taxation of the healthcare services. The government should reduce taxation to the people willing to establish private health care systems. If the government can abolish the tax, many health centers could arise. Creation of many health centers will lead to effective and efficient services because of competition (Karl, 2011). In many countries, governments do not have enough facilities to handle every health problems. The governments imports facilities from different countries. In case of importation, it pays a lot of money for values added tax. Some government officials decide not to buy the facilities due to the large amount of tax. This leads to poor services due to lack of infrastructures. In private hospitals, they work for profit. In case of payment of high taxes while buying facilities, it means that the hospitals will make a little profit. As a result, people opt not to engage in health service business and leave the work to the government. The manufactures of healthcare facilities should reduce tax and sell the facilities at an appropriate price. The government should also make sure that it has enough funds to buy infrastructures even at a high cost. People running private hospital also should make sure that, they have enough facilities to handle each health problem. In taxation of healthcare workers, the government charges a lot of money, which makes many of the workers to quite the job. Many of the workers have decided to quit the profession due to excessive payment of tax. They opt to open private business in order to avoid payment of taxes. Insurance covers also charges taxes, which make many individuals not able to take a cover. The government should reduce taxes to employees in the healthcare system (Baker, 2011). This will motivate the workers and make them profitable. They will work hard because of high salaries with few deductions. The government should put into consideration the issue of taxation. It should either reduce the taxes or remove it completely. Salaries Another issue, which needs reform in the health care finance, is reform of salaries and wages. In some countries, the government takes care of the health workers salaries. Salary arrangement gives the government control of care cost. They may also lead to the provision of poor services in hospitals. The primary services provider gets little salaries than the secondary service providers. This can lead to more referrals to secondary service providers hence poor services. High level of patients to a particular group of service providers can lead to patients going back without been attended. The government should include a well organized scheme to regulate workers salaries. Health care service providers include doctors, nurses, laboratory assistance and clinical officers among others. Those people should get a good salary since they take care of people’s lives (Karl, 2010). The government should ensure that employees get other benefits like medical covers and risk allowances. The workers in health care system handle different patients suffering from transmission diseases. The doctors can contract the diseases in the process of treatment. The government should ensure those health workers are covered against risks. They should also get allowances like entertainment, commuter, housing and family care. This will ensure that the workers have enough money to take care for themselves and their families. In a private hospital, the managers should make sure that their employees have a salary which can keep them living. Some of the private health service system gives the workers little salary (Gapenski, 2011). The government should regulate salary for each health worker whether in private, nongovernmental or in the government. In many countries, the doctors who stay in office receive high salary while the people who handle the patients receive little salary. For example, a doctor gets a lot of money than a nurse who takes care for the patient every time. The clinical officer undertakes a body operation and leaves the theater while the nurses take care for the patient until he/she goes get well. The nurse should get a better pay or extra allowances to compensate for their services. This issue has made many people change their career. Others have advanced in education in order to receive better salaries and stop providing much service to patients. If this goes on it means that in the future many people would have left the position which require much job. Then the industry will not operate as required. The government should make sure that each worker is compensated according to his/her services. Serviced fee The other thing to reform is a service fee. Mostly, many healthcare centers charge high service fee which low income people can not manage to pay. Private hospital charges a lot of money. This has made many people die due to lack of money. The government should put regulations governing the amount of money to pay for medical services. The regulation will ensure that private hospital do not manipulate patients by asking for much money. Many people have died due to lack of money (Baker, 2011). They suffer, but the doctors in hospital can not accept to treat an individual without completion of the medical bills. The government should ensure that people receive medical services at low cost. The government and private organizations should also establish schemes to take care of the people who can not pay for their medical expenses. Some of the countries have established schemes in which people pay a little money monthly, and they compensate by payment of the hospital bill in case of hospital admission. Some doctors ask for extra money while providing for services. The government should take care of the medical expenses of the disabled, poor and elderly people. It should also make sure that service providers do not manipulate the patients by demanding extra fee (Karl, 2010). Financial Management Systems In most countries, the income generated from health services is misused. Dishonest employees use the money for personal gain instead of recording the money and taking it to the treasury. In case, the health departments hands over the money to the government, some government officials uses the money for personal development. Money collected from health departments should be managed properly (Gapenski, 2011). The government should only employ professionals to handle financial issues in health departments. The professionals should take care of the financials accounts and risk managements. They should balance between expenditure and income. They should also prevent misappropriation of funds in the department. Criticism Though, in many countries, the government has been trying to reform health care finance nothing has changes. In America, the government has tried to improve medical operation but all in vain. The application of the above points can help in reformation of financial systems in health care. They can only apply if the individuals concerned with the department are willing to change. Individual should reform first. They should reduce corruption, selfishness, and discrimination in order for reform to take place. Conclusion Healthcare finance needs reform for the whole department to work effectively. Finance or money is the key to success of each organization or individual. An organization without funds can not move to another level. Reforming healthcare financial systems will lead to expansion and development of the department. References Benson Karl, (2010). Essentials of Health Care Finance. London: Green Lion Publishers. Judith J. Baker, (2011). Tools for Healthcare Finance. California: California University Press. Louis C. Gapenski, (2011). Healthcare Finance. New York: McGraw-Hill Press Read More