Essay - Health System Administration - Strategies to Combat Losses the Practical...

Health System Administration - Strategies to Combat Losses

The practical realties of today have brought about a dramatic change in the manner in which Health Care Organizations and Delivery Systems are being managed. Be it large Health Care Corporations, integrated health delivery systems, academic medical centers, independent hospitals, nursing home operations, Health Maintenance Organizations (HMOs), Independent Practice Associations (IPAs), hospital/health system owned Management Services Organizations (MSOs), across the board, the health industry is actively taking measures to ensure prudent financial management.

***** recent focus on ***** health by ***** ***** Care Industry has been brought ***** *****: "The underlying issue is how do you reconcile the value that people put in ***** health care system ***** the level ***** care they expect with the financial realities of ***** employers and insurance marketplace... there is a d*****connect between what people ***** and ***** societal institutions are willing to pay." (Business Today.com, April 25, 2002) Across the country, health ***** institutions are facing dwindling reimbursements from government agencies and insurance providers. As a result, even top-flight ***** such as the University of Pennsylvania, Stanford and Harvard ***** experiencing losses ranging ***** $50-150 million. ********** also innumerable instances ***** ailing/shuttered hospitals and bankrupt nursing ***** operations.

***** combat financial losses, ***** health care ***** is adopting the principles of business planning and management employed by commercial enterpr*****es in ***** traditional world of business. Increasingly, stakeholders and the Boards of Health Care Organizations are realizing ***** value ***** a Mission/Vision statement (that defines the purposes and principles of the organization) and Long Range and Strategic Planning ***** includes ensuring the quality ***** services provided while simultaneously maintaining fiscal integrity through a process of annual plans ***** budgeting. Other tried and tested principles of managing profitable businesses such as management processes ***** reporting systems; operating goals in the *****a of employee productivity and efficiency ***** delivery of 'care' and 'services'; benchmarking performance against industry ********** Practices ***** cost management systems including review and redesign ***** supply chains, care processes and other work systems are ***** undertaken.

Organizations that ***** successfully used the above principles and are now ***** in the black *****clude several HMOs: "Harvard Pilgrim... lost more than $200 million in 1998 reported an operating gain of $36 *****. Tufts Health Plan...gain of $48.1 million...." (Business Today.com, April 25, 2002) Harvard Pilgrim's success is attributed to key management principles: "service and quality me*****ures...best in the *****dustry...continuing ***** focus on reducing...inflation while improving quality...." (Harvard Pilgrim Online, May 2002)

The health care industry is also focusing on implementing ***** measures of successful business management such as pruning down scarcely utilized or highly unpr*****itable line of services and instead using resources to target areas ***** health that are m*****e in line with their communities' needs: "concerted effort to drive down expenses...pushing ahead with ambitious plans...new patient c***** ***** research space...take advantage of trends...thrive in the future...." (Vanderbilt Medical Center Web site, February 2000)

Other innovative strategies being pursued ***** increase profitability and provide quality care include