Assignment Cover Sheet For Financial Management Cours 656168

Assignment Cover Sheetcourse Namefinancial Management For Healthcarec

Write a page and a half about any factor that contributes to decreasing or increasing the cost of healthcare.

Paper For Above instruction

Healthcare costs are influenced by a multitude of factors that either drive expenses upward or contribute to their reduction. Understanding these factors is crucial for policymakers, healthcare providers, and patients aiming to control costs while maintaining quality care. Among the significant contributors to increasing healthcare costs is the rising expense of advanced medical technology. The proliferation of new diagnostic and treatment technologies often results in higher charges for procedures and hospital stays, primarily because of the substantial research and development costs involved in bringing innovative devices or treatments to market (Jha et al., 2018). For example, the adoption of robotic-assisted surgeries has increased procedural costs due to expensive equipment and training requirements, even though they may offer benefits like reduced recovery time.

Similarly, administrative costs constitute a major factor driving healthcare expenses. The complex nature of healthcare billing, insurance processing, and regulatory compliance creates administrative overheads that inflate overall costs. A study by Himmelstein and Woolhandler (2016) highlights that administrative costs account for a significant percentage of total healthcare expenditures in the United States, surpassing those in many other developed nations. Streamlining administrative processes or adopting integrated information systems can significantly reduce these expenses, thus lowering overall healthcare costs.

On the other hand, there are factors that contribute to decreasing healthcare costs. Preventive care and early intervention are critical in controlling long-term expenses related to chronic diseases. Implementing robust preventive programs, such as vaccinations, health education, and screenings, can reduce the incidence of costly medical conditions like diabetes or cardiovascular diseases. For instance, the Centers for Disease Control and Prevention (CDC, 2020) has demonstrated that vaccination programs have led to substantial cost savings by preventing disease outbreaks and reducing the need for expensive treatments.

Additionally, improvements in healthcare delivery models, such as value-based care and accountable care organizations (ACOs), aim to enhance care coordination and focus on outcomes rather than volume. These models incentivize providers to avoid unnecessary tests and procedures, thereby decreasing redundant services and reducing costs. ACOs, for example, have been associated with savings in Medicare spending by promoting more efficient resource utilization while maintaining quality standards (McWilliams et al., 2019).

Furthermore, administrative efficiencies and technology adoption can also lower healthcare costs. Electronic health records (EHRs) facilitate better communication among providers, reduce paperwork, and minimize duplicated testing, contributing to cost containment. Implementation of telemedicine expands access to care, especially in rural areas, and can reduce costs associated with hospital admissions and travel. These technological advancements represent promising avenues for cost reduction without compromising care quality (Bashshur et al., 2016).

In conclusion, the factors influencing healthcare costs are diverse and interconnected. Technological advancements and administrative complexities tend to push costs upward, while preventive measures, innovative care models, and technological efficiencies offer pathways to cost reduction. A comprehensive approach addressing these factors holistically is essential for sustainable healthcare financing in the future.

References

• Bashshur, R. L., Shannon, G., Krupinski, E., & Grigsby, J. (2016). The state of telemedicine utilization in the United States. Journal of telemedicine and telecare, 22(2), 81-89.
• Himmelstein, D. U., & Woolhandler, S. (2016). The current and projected future costs of US health care. The American Journal of Medicine, 129(4), 383-385.
• Jha, A. K., Topol, E. J., & Lopez, J. D. (2018). Technology and health in the age of responsibility. JAMA, 320(7), 649-650.
• McWilliams, J. M., Hatfield, L. A., Chernew, M. E., & Landon, B. E. (2019). Medicare ACO program complexity and opportunities for improvement. Annals of Internal Medicine, 171(10), 738-743.
• Centers for Disease Control and Prevention (CDC). (2020). Vaccination benefits and risks. https://www.cdc.gov/vaccines/vaccination-benefits/index.html