Financial challenges hugely impact the healthcare industry. The industry is managed by different stakeholders who provide various types of services. A teaching hospital, for instance, plays an integral role in the betterment of the health of the patients. Additionally, the deployment of the hospital’s resources requires financial assistance. The hospital involves technology, human resource, and medications for the treatment of patients, all of which are available through the financial transaction (Safari et al. 2018). Therefore, the issue of fiscal mismanagement is a significant impediment to the attainment of the objectives of functional healthcare (Safari et al. 2018). Alternatively, the availability of financial resources is integral to the achievement of hospital objectives and policies. Most importantly, the issue of the lack of funding towards hospitals and their projects remains an essential cause of challenges in the healthcare industry. The scope of this paper reviews the challenges, obstacles, and recommendations to curbing the issue of financial constraints in healthcare from the perspective of a teaching hospital.
Current Challenges Presented with Healthcare Reform
The main challenges facing hospitals include insufficient funding, increased student debts, indebted patients, and inadequate payment systems. A teaching hospital has a responsibility to both medical students and its patients. However, a significant hindrance to its operations remains the insufficient allocation of funds necessary for its actions (Safari et al. 2018). Additionally, if most of the patients are not committed to paying for medical services, such an institution will not generate revenue. Therefore, the payment system is an essential cause of financial hardships experienced by teaching hospitals (Safari et al. 2018). However, increasing student debts also impact the operations of a teaching hospital. Technically, the institution also generates income through fees paid by its medical students.
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Obstacles Faced By Healthcare Organizations in Healthcare Finance.
Financial constraints harm the operations of the teaching hospital. The budget of the institution has a responsibility to fund the three sub-divisions of the hospital for efficient services. Additionally, it is essential to indicate that availability, allocation, and deployment of financial resources within the institution is a significant determinant of a hospital’s employee satisfaction (Safari et al. 2018). Therefore, budgetary allocations a considerable deterrent on matters such as industrial action among workers and general job satisfaction. Hence, compensation and remuneration of hospital staff is also an essential forte in the sector’s efficacy evaluation.
Challenges That Organizations Face In Establishing Organizational Goals.
Some of the financial difficulties being faced by teaching hospitals include the inability to budget for their activities and the astringency of insurance firms. The intricacies of the relationship and obligations of the various stakeholders operating with the institution make it hard for teaching hospitals to estimate their budgets (Safari et al. 2018). Typically, a public teaching hospital is both managed by the state’s ministry of health and the University. Therefore, both institutions have different obligations rather than upgrading the institutions, unlike in the private sector. Additionally, teaching hospitals are hugely affected by insurance firms that take advantage of the errors committed by medical trainees when filling patient’s records.
Recommendations for Overcoming Challenges
The interior planning and reliance on upscale levels of the organization is a means of curbing financial challenges within the institution. Interior planning entails prioritizing, change of perspective, evaluating and improving efficiencies, and training mid-level managers on economic models. Additionally, reliance on the top management on issues of financial allocation is also an effective means of obtaining funding (Safari et al. 2018). The Board of Trustees has the ability and autonomy on matters of finances and recruitment. Hence, this level of government has the power and ability to introduce measures to ensure the institution adopts a profit-making perspective. Furthermore, the introduction of effective policies in research, teaching, and treatment is an essential move in improving the financial position of the institution.
Reference
Safarani, S., Ravaghi, H., Raeissi, P., &Maleki, M. (2018). Financial challenges of teaching hospitals and providing solutions. Journal of education and health promotion , 7 , 155. https://doi.org/10.4103/jehp.jehp_95_18
