Cost Control

 

Define cost control and provide several examples of how it affects managers at all levels within a healthcare
organization. Compare and contrast Medicare and Medicaid in terms of eligibility, benefit packages, access to
care, and other key dimensions. Discuss the various ways in which healthcare reform has affected and may
affect the financial delivery of health care today and into the future.

 

Sample Solution

Cost Control

Cost control is the practice of identifying and reducing business expenses to increase profits, and it starts with the budgeting process. Cost control is an important factor for maintaining and growing profitability. While the cost problems appear to be out of control and worsening, healthcare systems can minimize them through creative new approaches to how they conduct their operational, clinical, and financial business. For example, hospitals can get more productive by refocusing on labor, a focus that was lost in the past few years for many reasons. Hospitals need to better match resource demand, making sure they have the right staff with the right skill for the workload.

o create public value Moore offers a model of working within a strategic triangle to ensure that the manager has both a true understanding of what is publicly valuable and a mandate to create it. When public managers consider their proposed action, he argues they must ensure that customers, stakeholders, sponsors and funders support the action (authorizing and political environment); their organization has operational capacity, skills and competencies to carry out the action (operational capacity); and that it is in line with the values, mission and purpose of their organization (strategic goals). Value is determined by the preferences of citizens but is it not enough for something to be desired for it to be of value. Citizens must be prepared to give something up for it, either in terms of taxes for services or enforcement powers given to the state in return for greater security.

Kelly et al assess the optimum environment for the creation of public value is ‘the combination of strong public sector institutions and competition from private and non profit organizations’ as it ‘achieves the best balance of accountability innovation and efficiency’ to drive sustainable improvement. They cite the improvements in the services as proof quoting the linking of funding as good practice in shifting from measuring outputs to outcomes as a means of creating further value. They categorize the arenas for creation of public value into outcomes, services and trust. The criteria by which public value will be measured as the quality of customer service; how well the public feel that they are informed and the choice available.

This question has been answered.

Get Answer
WeCreativez WhatsApp Support
Our customer support team is here to answer your questions. Ask us anything!
👋 Hi, Welcome to Compliant Papers.