Financial Strategies of Healthcare Organization Essay

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Develop a financial strategy for using global nursing strategies to increase fiscal responsibility. Include the positive and negative financial impact of bringing foreign healthcare providers into a financial organization. Examples such as physicians, nurses, and therapist should be evaluated and assessed for financial viability.

Healthcare institutions may be faced with fiscal constraints at some point in their growth process therefore necessitating austerity measures and sound business practices that will help minimize costs and enhance operational and financial efficiency inside the hospitals (Dong, 2015). Many questions arise as to how the financial management culture in healthcare institutions can influence care quality. This research paper attempts to identify the global nursing strategies that would increase financial responsibility in healthcare institutions as well as the financial impact that hiring foreign healthcare providers into the financial organization has.

According to Dong (2015) there is a significant statistical relationship between the financial performance of a hospital and the quality of healthcare the hospital provides. The profitability of the hospital, operating efficiency, asset liquidity, costs, and financial leverage are important determining factors to the quality of healthcare. Generally public hospitals offer lower quality healthcare compared to the nonprofit hospitals (Dong, 2015). Similarly, urban hospitals often report better healthcare quality compared to the hospitals situated in the rural areas. In specific terms, results from the research conducted by Dong (2015) reveal that treatment quality for the cardiovascular patients increased in the subsequent year following a growth in the labor costs, financial leverage, and profitability of the hospital.

The outcome of the research by Dong (2015) suggested that when the hospital makes greater profits, has greater abilities for financial investment, and paid better wages as an apparent way of attracting more professional nurses, the hospital would have its care quality improving. The desire for better profits drives hospitals to strengthen their quality and quantity of services offered. This implies that hospitals that have poor financial standing needs better monitoring and better fiscal strategies to strengthen their quality of care.

Financial strategy for using global nursing strategies to increase fiscal responsibility

Collaboration: By nature nurses are known to be collaborative more so when providing care to patients. Team based healthcare provision is encouraged by American Nurse Today (2008) as well as partnerships with families. There is value in collaboration. This is because collaboration allows the nursing community to have a broader view and to minimize the chances of having communication breakdowns (American Nurse Today, 2008). This is very true as well for nurses who ought to be good financial stewards for their healthcare institutions. In order for a nurse to be a progressive financial steward they ought to embrace collaboration with nurse colleagues serving in the finance department. Apparently the nurse managers may appear not to be likely allies but in real sense collaboration between healthcare personnel serving in the finance department and nurses can help improve the healthcare institution’s bottom-line and patient outcomes (American Nurse Today, 2008).

The global economy is faced with uncertain times. There is also an increasing healthcare reimbursement threat from the insurers. For these and many more reasons nurses are required to be prudent enough in ensuring that colleagues serving in the finance department are not strangers but allies to them. This can only happen if both parties appreciate the fact that money ensures that healthcare is healthy as Dong (2015) would find in his research. Money helps healthcare institutions buy high-tech and progressive technology. It helps build better facilities in place of the crumbling and old fashioned structures elected half a century ago during the prime of American hospitals. Money pays benefits and salaries to the healthcare staff.

The nursing community is already beginning to get acquainted with financial literacy with increasing knowledge is areas such as CMI adjusted length of stay, conditions existing on admission, profit margins, cost versus reimbursement, and case mix index (American Nurse Today, 2008). Most nurses would know that financial instability in the healthcare institution would affect their earnings as well as the budget with which the employer operates (American Nurse Today, 2008). Increasing costs of fuel and supplies is bound to increase the cost of operations in the hospital institution. As the healthcare institution struggles to keep up with the increasing costs of operation and struggle to remain in business, the benefits and salaries due to the healthcare staff may fail to grow over a long period of time.

The staff often account for the largest chunk of expenses in many healthcare organizations (American Nurse Today, 2008). This would mean that nurses’ expenses are quite high in hospitals.

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On the flipside the nurse is one of greatest assets any hospital would have. The nurse is in essence the holder of the key to better efficiency and outcomes in the hospital. With better efficiency and outcomes the finance department of the hospital will have an easier time budgeting. This is because better efficiency and outcomes would mean cost effectiveness and little to no loss of financial reimbursement in the payment for performance matrix (American Nurse Today, 2008). The nurse has to do much more than remain a valuable asset to the hospital. They have to make their value tangible. Any prudent nurse would know where wastage is and would be an integral part of helping the healthcare institution eliminate waste and alleviate adverse and complicated healthcare outcomes. It is this knowledge by the nurse that makes them quite powerful and precious to the healthcare institution. The most important competitive compensation leverage is the demonstration of value.

The nurse is capable of understand the necessity of care and compassion towards patients and the need to handle any physiologic issues with patients. The finance department staff will be conscious of the need to gather the monies owed to the healthcare institution and maximize the financial health of the institution. This shows that both the nurse and the finance department staff view the hospital facility in different perspectives and rightly so by…

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…(Click & Duening, 2005).

Cost Reduction: By outsourcing the healthcare institution is bound to save on monies that would otherwise be spent on oversight, billing, recruitment, training, and risk mitigation. With outsourcing man hospitals can benefit from the large pool of professional providers who are well acquainted with the common goals and processes of the emergency department.

Improvement of services and stimulation of growth: This entails promotion of quality of healthcare in the healthcare institution by ensuring that patient safety, care continuity and patient experiences are made a top priority. Through outsourcing the overall quality of care and reputation of the healthcare institution through the practice of competence based clinical activities is enhanced. With competent clinical officers, physicians, nurses, and therapist the goals of patient care are achieved and patients receive outstanding experiences through the skilled strategies and tactics employed by the healthcare professionals outsourced.

Alleviation of stress on the scarce internal resources: Through outsourcing of accounting functions the healthcare institution can benefit from centralized physician billing, centralized credentials, professional billing and fee coding. Outstanding physician leadership with national experts support is another direct benefit for the healthcare institution.

Other financial benefits of bringing foreign healthcare providers into a financial organization include alleviation of critical mistakes in the organization, access to trained, skilled and expert healthcare professionals, alleviation of training costs, ample time to ensure that more attention is given to enhanced patient care, alleviated costs while at the same time ensuring quality of healthcare (Duening & Click, 2005). With outsourcing the business is able to pay special attention to what matters most. In the case of healthcare organizations quality of patient care is what is central. Through outsourcing healthcare providers will have less to do with management and administrative duties and more to do in providing better patient experiences and improving on it.

Even though outsourcing comes with loads of benefits especially on cost reduction it is only easier when practiced on temporary staff for the reason that they don’t have permanent attachment with the organization. Some countries have regulations and rules governing the intellectual property and privacy when it comes to outsourcing beyond the geographical location of the country. Hospital organizations must be keen to examine information/data export regulations. With outsourcing the hospital management must be careful with managing the internal culture of staff and their feelings concerning outsourcing (Harland, Knight, Lamming & Walker, 2005). Most staff members might view outsourcing as a risk to the security of their job. Leaders must therefore be transparent when outsourcing their physicians, nurses, and therapist. The contract detailing the outsourcing agreement must as well be accurate and clear with respect to the responsibilities and roles for which both parties will be playing. The arrangement is bound to fail if there is no clarity on the terms of engagement.

Successful organizations and departments can leverage on outsourcing for competitive advantage only when the outsourcing is managed prudently. There has to be dedicated resources to specifically manage vendor….....

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References

American Nurse Today. (2012).The business of caring: What every nurse should know about cutting costs. Official Journal of ANA (Vol.7 No. 11). Retrieved 5 January, 2019 from https://www.americannursetoday.com/the-business-of-caring-what-every-nurse-should- know-about-cutting-costs/

American Nurse Today. (2008). Collaborating to improve the financial health of health care, Official Journal of ANA. (Vol. 3 No. 11). Retrieved 5 January, 2019 from https://www.americannursetoday.com/collaborating-to-improve-the-financial-health-of- health-care/

Click, R. L., & Duening, T. N. (2005). Business process outsourcing: The competitive advantage. Hoboken, N.J: John Wiley & Sons.

Donaldson, A., (2017). How financial institutions can gain efficiencies through outsourcing, RSM. Retrieved 5 January, 2019 from https://rsmus.com/what-we- do/industries/financial-services/banking-and-capital-markets/financial-institutions/how- financial-institutions-can-gain-efficiencies-through-outsour.html

Dong, G. N. (2015). Performing well in financial management and quality of care: Evidence from hospital process measures for treatment of cardiovascular disease. BMC Health Services Research, 15(1). https://doi.org/10.1186/s12913-015-0690-x

Duening, T. N., & Click, R. L. (2005). Essentials of business process outsourcing. Hoboken, N.J: John Wiley & Sons.

Fawcett, P. J. (2013). Financial Management for Nurse Managers and Executives, 4th Edition. AORN Journal, 97(6), 759–760. https://doi.org/10.1016/j.aorn.2013.03.008

Harland, C., Knight, L., Lamming, R., & Walker, H. (2005). Outsourcing: Assessing the risks and benefits for organizations, sectors and nations. International Journal of Operations and Production Management. https://doi.org/10.1108/01443570510613929

Roussel, L. A., Harris, J. L., & Thomas, T. (2015). Management and Leadership for Nurse Administrators. Sudbury: Jones & Bartlett Learning, LLC.

Vincent, D., & Reed, P. G. (2014). Affordable Care Act. Nursing Science Quarterly, 27(3), 254– 259. https://doi.org/10.1177/0894318414534494

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