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In order for it to be effective and meet the required goals, provision of healthcare should be accorded the necessary attention. This is because it is an inevitable service that calls for special and intensive operations. The necessary requirements should be met to avoid the challenge especially that related to finances presented to the organizations providing it: both profitable and non profitable as a result of this deficiency. These may include a decrease in revenues, rising costs and the consumer’s high expectations. Therefore, health institutions must come up with strategies that enable them to tackle any upcoming contemporary issue that arise in the healthcare sector. This may include managed care, reforms and policy such as the health insurance reforms which a lot of countries have embarked on to provide primary health care to consumers. The following paper will address a number of changes that are caused by various healthcare issues and how they impact on the organizations that provide services of healthcare.
Reforms, Health care Organizations and Necessary Strategies
In relation to business issues concerning contemporary health care would impact differently on profit and nonprofit making organizations. This is because they have varied objectives for their establishment as well as providing the services. Currently, health care has become expensive and especially with the legislation of the health reform which has resulted in increasing costs due to factors that include Medicare and the introduction of managed care. This has created a change in the offering of medical care and its obtainable quality. As a result there is need for organizations to reinvent their processes plus technology.
For example, profit organizations are compelled to cut down the costs in order to maintain the current levels of benefit since they deem it unfair for the employers to meet these rising costs. In order to realize these reduction these organizations will either reduce the number of their employees through layoffs, cut back on their resources or do some research on other plans and providers of health care. (Manta, 2011). An example is the change from specialists to general practice of many physicians in Bulgaria when a health insurance system and general practice based services on primary care were introduced during the late 1990s (Rechel, Hristova and Mortimer, 2007)
The profit organizations have to implement a broad, deep and very strategic approach towards management of non labour expenses which include supplies, those services purchased in addition to the benefits of the employees.
Contrary to this, the nonprofit organizations manage the rising cost in different way since they are involved in both the financing and delivery of health care services and reinvest their profits to benefit the community. According to Beth, they have to go in the community to offer preventive medicine, make improvement on public health and assist the consumers of healthcare to make better choices. In this case everyone works together to give the best healthcare at a reduced cost ( Alliance for advancing nonprofit health care, 2011).
They can do this by coming up with their own reform plan as was demonstrated by Hackley Hospital: a non-profit community .............
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