Health Care Systems
Imagine you work for a hospital where the operating margins have been consistently below national norms for the past three (3) years. Discuss one (1) key driver of the below average performance. Suggest one (1) strategy to improve the future management of the driver that you’ve discussed.
- Suppose you work for a hospital that was denied a contract with an HMO last year. Legal counsel believes there was a breach of contract and wishes to bring suit against the HMO for damages. The chief executive officer has asked you to work with the controller to develop a defensible measure of the damages experienced during the last year. Create an argument for the reimbursement of damages in which you indicate the denial’s resulting impact to patient care. Provide support for your argument.
……..Answer Preview……….Health systems and hospitals in the United States have been undergoing a dramatic change for the last three years. This has affected their models and it has led to shift of their operating sections. The key driver which has led the operating margins to go below the operating margin is because of the increased number of hospitals in the United States which are non-profitable. This is because they offer services of fewer charges and others offer free services to the patients. According to Cleverley, & Song, 2011, the federal government has been affected by these services because many hospitals have not been relying on …………….
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