Change Management Theories As Applied to Healthcare Improvement Essay

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Select a problem or issue in the healthcare industry that you know needs changing or improvement.One area within the healthcare industry that required change and improvement are costs. Costs relative to other developed nations is very high, without the corresponding benefits of such costs. Currently the Untied States spends roughly 18% of GDP on healthcare related expenditures. Many experts believe that healthcare expenditures as a percentage of GDP will rise to nearly 20% by the year 2030. This will equate to roughly $4 trillion dollars being spent on healthcare related expenditures. This however is in stark contrast to actual healthcare outcomes which are not manifesting in the manner commensurate with the increase in costs. Currently, the United States is ranked last out of the 11 wealthiest nations of earth as it relates to healthcare outcomes. As a result, the United States is spending more than any other country but has the worst outcomes as compared to other developed nations. Chart 1 below showcases this large divide in both costs and outcomes. To help mitigate these issues, the healthcare industry should embrace and adult telehealth strategies within all health insurance coverage options. In addition, telehealth options should continue to be expanded to allows for a cost-effective solution that can simultaneously improve healthcare outcomes.

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As it relates to the classical change theories, the empirical-rational theory emphasizes the belief in self-interest. Essentially, if the individual has a justified reason in changing their behavior, the individual will do so. This is a strong change theory…

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…to maintain profitability, thus lowering consumer options. Cost caps could also create a need to lower headcount resulting in massive industry layoffs. Forcibly lowering costs can also lower overall healthcare quality as businesses look to eliminate expenses to help maintain profitability (Brotman, 1958).Overall, the best change theory to lower healthcare costs would be related to the empirical-rational theory. Here, it is in the best interest of all parties involved to help lower costs to improve the overall outcomes for society. Lower costs can help increase adoption of innovative technologies such as telehealth and telemedicine. It also provides incentives for consumers to improve their own health through proper diet and exercise to reduce costs to them. Society benefits as a smaller proportion of GDP is being spent on….....

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