As a health care manager, you must be able to analyze financial and economic issues in the health care industry. In this assignment, you will demonstrate problem-solving skills as you choose an issue and address the financial impact in your analysis.
- Preparing for the Assignment:
Select 1 current financial or economic issue in the health care industry that you want to address.
- Assignment Directions
Write a 700- to 1,050-word paper about the financial or economic issue you selected in which you:
- Analyze the financial impact of this issue on the health care industry. Consider the following:
- What are the economic trends of the health care payment system?
- What are the supply and demand challenges for health care services?
- Why are costs increasing in the health care system?
- What regulatory issues are affecting, or will affect, the health care industry?
- Recommend at least 1 strategy to address the issue.
- Consider current strategies being used or presented for improving the issue.
- Discuss what you believe would be the outcome of these recommendations, if implemented.
- Pharmaceutical Cost
- Mergers & Acquisitions (M&A) in health care
- Disruption from established players and newcomers (think CVS, WalMart, Walgreens)
- Transitions in Payment/Reimbursement Models
- Provider Shortage
- Consumerism of health care
- Virtual or telehealth
- Increased patient responsibility (high insurance cost/deductibles)
- Baby Boomers
- Pricing transparency
- Electronic Health Records (EHR)
- Movement of health care service delivery from traditional settings toward more distributed settings
Here is an APA template specific for this assignment that may help. I’ve shared my two cents worth to help guide you as you tackle this assignment.
Expert Solution Preview
Healthcare is a constantly evolving industry, and with it comes numerous financial and economic issues that need to be analyzed and addressed. As a healthcare manager, it is important to be able to identify these issues and provide solutions that will positively impact the industry. In this assignment, students will analyze a current financial or economic issue in the healthcare industry and provide recommendations to address it.
The current financial or economic issue that I have chosen to address is pharmaceutical cost. The sharp increase in the cost of prescription drugs has become highly concerning for patients, policymakers, and the healthcare industry as a whole. It has resulted in an increased burden on patients, higher healthcare spending, and has affected the accessibility of medications.
Analyzing the financial impact of this issue on the healthcare industry reveals various economic trends in the healthcare payment system. There has been a shift in the focus from volume-based care to value-based care, and the pricing of prescription drugs plays a significant role in determining the quality of care that patients receive. Additionally, the cost of prescription drugs has significantly contributed to the increase in healthcare spending, which accounts for a large portion of the national budget.
There are supply and demand challenges for healthcare services that arise from the high cost of pharmaceuticals. Many patients are unable to afford their medications, and this has forced some to make difficult decisions such as skipping doses or not filling their prescriptions. This can result in negative health outcomes in the long run, further increasing the burden of healthcare costs for both patients and providers.
The reasons for increasing costs in the healthcare system are multifactorial. Some of these reasons include spending on research and development, marketing, and the cost of manufacturing. Additionally, the power of pharmaceutical companies to set prices without significant regulations has contributed to the spike in costs.
Regulatory issues that affect the healthcare industry include patent laws, FDA approval, and government pricing regulations. These regulations can constrain the drug industry, but their impact has been minimal, and drug companies continue to price medications significantly higher than before.
To address this issue, one strategy could be price regulation. The government could negotiate with pharmaceutical companies to limit prescription drug prices or introduce policies such as bulk purchasing to reduce the overall cost of medications. An alternative strategy could be to promote the use of generics or biosimilar medications, which can help reduce drug costs for consumers.
The outcome of these recommendations could lead to improved accessibility to medications and reduced healthcare spending. It could also allow for more efficient allocation of resources to the healthcare system. Additionally, promoting generic medication could drive more competition in the market, leading to lower prices and improved access to medications.
In conclusion, the issue of pharmaceutical cost is a complex financial and economic issue that requires careful consideration and analysis. By analyzing its impact on the healthcare industry, identifying the supply and demand challenges, evaluating the regulatory issues and recommending strategies, healthcare managers can provide solutions that will address this issue and promote positive outcomes for everyone involved.
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