IHP 620 Module Eight Short Paper Guidelines And Rubric

Ihp 620 Module Eight Short Paper Guidelines And Rubricprompt Thus Far

IHP 620 Module Eight Short Paper Guidelines and Rubric Prompt: Thus far in the course, the primary focus has been on hospitals within the healthcare industry. For this short paper, you will consider the economic issues related to long-term care facilities. In this assignment, consider the following questions related to long-term care facilities:

- What are the factors that make long-term care unique compared to a hospital?

- What is the effect of Certificate of Need (CON) on the economics of long-term care economic decision making and how is this different from that of a hospital?

- What does the forecast of supply and demand for the long-term care industry look like for the next 25 years and how should that impact decision making?

- Should the U.S. government cover the costs for the elderly in the middle and wealthy classes?

Guidelines for Submission: Your paper must be submitted as a 2–3 page Microsoft Word document with double spacing, 12-point Times New Roman font, one-inch margins, and at least two sources cited in APA format.

Paper For Above instruction

Introduction

The healthcare industry encompasses a variety of facilities dedicated to different patient needs, among which hospitals and long-term care (LTC) facilities play vital roles. While hospitals focus on acute care requiring immediate and intensive treatment, LTC facilities are designed primarily for ongoing, managed care for individuals with chronic conditions or disabilities. Understanding the distinct economic features and future challenges faced by LTC facilities is essential for policymakers, healthcare administrators, and financial stakeholders.

Unique Factors of Long-term Care Facilities

Long-term care facilities are differentiated from hospitals through several key features. Primarily, LTC facilities focus on providing continuous, custodial, and supportive care rather than acute medical interventions. They cater predominantly to elderly populations with chronic illnesses such as Alzheimer’s disease, Parkinson’s, or mobility impairments, differing from hospitals which primarily handle acute, episodic health crises (Kaste et al., 2020). Additionally, LTC facilities often operate with longer lengths of stay, emphasizing quality of life, daily assistance, and social engagement, contrasting sharply with the episodic, procedure-oriented nature of hospital care (Greenwald & Scully, 2019).

Economically, LTC facilities face distinct challenges such as lower reimbursement rates from Medicare and Medicaid, heavy reliance on government funding, and limited capacity for high-margin services (Castle et al., 2022). The staffing models differ as well, with LTC requiring predominantly nursing assistants, personal support workers, and social services staff, whose wages are typically lower than hospital-based healthcare professionals (Wachter et al., 2021). Moreover, LTC facilities are more sensitive to demographic shifts, especially aging populations, which influence occupancy rates, staffing needs, and financial stability.

Impact of Certificate of Need (CON) Regulations

The Certificate of Need (CON) program, established to control healthcare costs and prevent unnecessary expansion, significantly influences the economics of LTC facilities. By requiring approval before establishing new facilities or expanding existing ones, CON aims to regulate supply and control overhead costs. In theory, this prevents oversupply and can lead to cost containment (Finkler et al., 2019). However, critics argue that CON may limit competition, restrict access, and delay innovation, potentially negatively impacting quality and efficiency in LTC markets.

Compared to hospitals, where CON regulations may restrict the proliferation of new beds or units, the impact on LTC facilities differs due to the unique demand drivers tied to demographic realities. In hospitals, CON may serve as a tool to prevent unnecessary capacity expansion that could lead to excess capacity and inflated costs. In long-term care, where demand is driven by demographic trends rather than reactive supply responses, CON’s role is more complicated. It can potentially stifle necessary expansion to meet rising demand, thereby exacerbating shortages for elderly care (Zhang et al., 2020).

Forecast of Supply and Demand for the Next 25 Years

The future of the long-term care industry hinges critically on demographic shifts, technological advancements, and policy developments. Research predicts a continued increase in the elderly population, with those aged 65 and older projected to comprise nearly 20% of the U.S. population by 2040 (Mather et al., 2015). This growth will significantly increase demand for LTC services, straining existing infrastructure and workforce capacity.

Supply-side challenges include staffing shortages, rising operational costs, and the need for innovation in service delivery. The integration of technology, such as telehealth and remote monitoring, is expected to become more prevalent, potentially improving efficiency but also requiring substantial investment (Boult et al., 2022). Policy reforms, including possible shifts in Medicare and Medicaid reimbursement structures, could further influence capacity building. Strategic planning will be vital for stakeholders to align supply with anticipated demand efficiently.

With a projected increase in demand, LTC providers must consider scalable and sustainable models. Investment in workforce training, infrastructure modernization, and technological integration will be essential. Additionally, policy adjustments facilitating funding and regulation flexibility could enable the industry to meet future needs effectively (Institute of Medicine, 2016).

Should the U.S. Government Cover LTC Costs for Middle and Wealthy Seniors?

The debate surrounding government funding for LTC services for middle- and upper-income seniors involves ethical, economic, and social considerations. Many argue that government intervention is necessary to ensure equitable access, especially as individuals often exhaust personal resources before qualifying for assistance (Barnett et al., 2018). Others contend that extending public coverage could lead to increased fiscal burdens, potentially diverting resources from programs serving the most vulnerable populations.

Supporters of expanded government coverage highlight that LTC costs are a significant financial burden, with average costs surpassing $7,000 monthly for assisted living and over $8,000 for nursing homes (Genworth, 2023). Without sufficient coverage, many middle- and upper-income seniors may face financial hardship or deferred care, ultimately impacting their health and well-being. Progressive policy approaches—such as targeted subsidies, long-term care insurance reforms, or public-private partnerships—could bridge the gap, offering a sustainable way to fund LTC services (Lipton et al., 2021).

Opponents cite concerns about increased taxation and government overreach, advocating personal responsibility and private market solutions instead. Ultimately, balanced policy options may include a combination of public and private funding, ensuring broad access while maintaining fiscal responsibility (Mackenzie et al., 2022).

Conclusion

Long-term care facilities occupy a critical niche in the healthcare system, distinguished by their focus on ongoing, custodial care tailored to an aging population. The economic landscape of LTC is shaped by factors such as regulatory frameworks like CON, demographic shifts forecasting increased demand, and funding debates concerning the role of government. Preparing for the next 25 years requires strategic planning, innovation, and nuanced policy approaches—particularly regarding financial coverage—that can balance sustainability with equitable access. As the U.S. population continues to age, proactive measures are essential to ensure LTC services meet future needs efficiently and effectively.

References

- Barnett, J., Korea, P., & Coe, N. (2018). Policy options for financing long-term care in the United States. Health Affairs, 37(2), 232–239.

- Boult, C., Wieland, G. D., & McCormick, J. (2022). The potential of telehealth for long-term care: A systematic review. Journal of Aging & Social Policy, 34(1), 17–34.

- Castle, N. G., Ferguson, J. C., & Handler, S. (2022). Financial challenges facing long-term care providers. The Gerontologist, 62(4), 447–455.

- Finkler, S. A., Jezewski, M. A., & Calabrese, T. (2019). Health care economics. Elsevier.

- Greenwald, L., & Scully, C. (2019). Comparative analysis of hospital and long-term care services. Healthcare Management Review, 44(2), 111–119.

- Institute of Medicine. (2016). The future of long-term care. National Academies Press.

- Kaste, N. E., Zinn, J. S., & Timberlake, M. (2020). Chronic illness and long-term care: Policy implications. Public Policy & Aging Report, 30(3), 92–97.

- Lipton, R., Kharicha, K., & Fabrizio, G. (2021). Funding long-term care: Public and private approaches. Journal of Aging & Social Policy, 33(4), 345–359.

- Mather, M., Jacobsen, L. A., & Pollard, K. M. (2015). Aging in the United States: 2014. U.S. Census Bureau.

- Wachter, R. M., Elwell, T., & Ng, T. (2021). Workforce shortages in long-term care. Healthcare, 9(10), 1234.

- Zhang, J., Grabowski, D. C., & Mor, V. (2020). The effect of CON regulation on long-term care capacity. Health Economics, 29(11), 1393–1407.