Medical Reimbursement Policy on Sub-Acute Patients - Essay Example

On the positive aspect, many hospitals received large profits as a result of the reduced stay of patients. Some states enacted the policy of PPS in nursing homes where the medical providers are paid based on how severely ill the patients are rather than the volume of services provided to the patient (Griffin, 1995). The medical reimbursement provided was not enough to provide an incentive for medical providers to retain patients during sub-acute phase recovery. SNF was reimbursed with cost limits, the total amount needed to treat sub-acute patients normally goes beyond the SNF cost limit.

This means that the amount dispersed for treating heavy care or sub-acute was inadequate. There are several theories of organizational behavior and communication that could have assisted PM from collapsing, one of which is the structuration theory, this theory was developed by Anthony Giddens (Andrew, Richard, and Catherine, 1989). In this theory, leaders make decisions and choices that can limit what can be done in an organization. The decision to introduce PPS did not work well with the medical providers and it limited the choices of PM, but with proper communication, the organization could have updated its equipment and introduced other people to new ideas and innovative programs to drive the organization.

The management should have come up with meaningful solutions to the complex problem facing the organization using innovative technological solutions that could have provided answers to the problems facing PM. According to Douglas McGregor, there are two types of organizational behavior theories, these are theory x and theory Y. in theory X the manager believes that the workers are lazy and cannot be trusted, in theory, Y, the managers believe that the workers are trustworthy and capable of assuming responsibility (Andrew, Richard, and Catherine, 1989).

This theory could have been important in a PM since it could have promoted management's understanding of employees’ motivation and employees could have performed better to avoid the collapse of PM. The management should have also applied the goal-setting behavioral theory. This theory is based on the belief that workers are motivated inside (Miller, 2000). If the organization sets a target, an employee will rise to the challenge and struggle to achieve the required goals. Employees should have been allowed in the process of selecting a goal in order to be more motivated, the goals of the organization should also be specific.

After the new Medical reimbursement policy was introduced, the management did have specific goals in line with the new system hence making the market share slow down.