Budgeting is an essential aspect of each business. Maintain a package of competitive benefits while also keeping costs in check is also becoming more challenging as healthcare costs continue to rise. Kaiser Permanente and Group Health Cooperative get most of its funds from federal sources and others from sponsors such as foundations, industries, and even from the institute itself (Gapenski, 2005). With the team at Kaiser working to provide the right care at the right time to patients and reducing unnecessary costs, it helps reduce the cost of healthcare. As a result, they can offer quality and affordable healthcare.
Moreover, team bases care gives the cooperative more. For instance, the doctors only order the necessary tests needed by their patients, hence reducing overall costs. Also, caregivers reduce duplication and total cost by avoiding reducing tests since they pull up the entire medical history of their employees (Gapenski, 2005). These employees also get timely vaccinations and other preventive care to minimize costly treatments and chronic conditions and hence cutting on the budget. Moreover, since doctors focus more on medicines than in running a practice, they reduce costs and medical errors, reducing the budget.
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Even though hospitals are owned by different entities, for-profit, nonprofit, and government-owned hospitals and are competing, the services offered are the same. For-profit hospitals will most likely provide high-profit medical services. On the other hand, nonprofits will focus on delivering profitable and non-profitable services, while the government focuses on non-profitable services (Horwitz, 2005). Moreover, when there is a change in service profitability, profits are usually quite responsive than the others. For-profits conduct their budget carefully by locating in areas where there are more insured patients and managing their case-mix in a more careful manner than the government and nonprofits. Moreover, profits decide on which services to be offered basing on their profitability.
References
Horwitz, J. R. (2005). Making profits and providing care: comparing nonprofit, for-profit, and government hospitals. Health Affairs , 24 (3), 790-801.
Gapenski, L. C. (2005). Healthcare finance: an introduction to accounting and financial management . Foundation of the American College of Healthcare Executives.
