Healthcare finance is undoubtedly one of the primary components of healthcare systems. Now, more than ever, healthcare systems are automated. Gone are the days when patients would pay for their medical bills over the counter. Given that I am pursuing a career in the healthcare industry, I believe that healthcare finance will play an important role in my daily dealings with patients and healthcare institutions. Also worth pointing out is the fact mastering such areas as healthcare billing systems, electronic medical records require exceptional healthcare management skills. Hence, studying healthcare financing will prepare me for future responsibilities in healthcare management.
Healthcare finance involves more than billing patients for medicines and services rendered (Brumley, 2019). For instance, a financial manager in a hospice setting must be versed in routine financial operations such as unexpected costs, availing cash for expenses such as drugs and payrolls as well as allocating money for research and development (Brumley, 2019). A hospital may decide to buy new equipment to offer new treatments, expand its services or to simply provide efficient services. Before buying the equipment, the hospital’s management team must deliberate on such issues as the cost of the equipment, the implementation costs and the return on investment. All these considerations are covered under healthcare finance.
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Also worthy of note is the fact that the hospital is a system by itself. The hospital is financially supported by medical care, health and wellness services, medical operations as well as rehabilitative services (Brumley, 2019). This financial system is what generates the hospital a steady stream of income. In the same vein, when hospitals acquire a practice, they bring in new steam of revenue (Brumley, 2019). To understand how the hospital’s financial system works and how the various departments are intertwined, I need to know about healthcare finance.
I have personally witnessed patients being financially exploited buy hospitals by obliviously paying inflated bills. This is usually the case when they are insured. Moreover, most hospitals do not advise patients about the most cost-effective screening tests or medicines. (Shah, 2013) As such, patients end up paying for pricy drugs and operations when they would have gone for a cheaper alternative. I, therefore, believe that by studying healthcare finance, I will be in a position to advise my patients on the most cost-effective forms of medical care.
Undoubtedly, medical bills are driving most American patients into bankruptcy. Not even the insured are safe. Most physicians agree that while they administer tests and treatments, they do not know how their decisions affect patients’ finances (Shah, 2013). Moreover, they are ordered to administer tests and treatments that may not be relevant to a patient’s condition. For instance, most scans and lab tests are rarely followed up (Shah, 2013). For this reason, patients pay for what does not help with their condition. In light of these unfortunate medical practices, I want to be among physicians who are willing to help bring health costs under control. Therefore, I need to be equipped with healthcare finance knowledge to identify areas that need improvement in the billing system.
In summary, I believe that my future career in healthcare will benefit a lot from my knowledge in healthcare finance. I do not want to take the back seat in as far as medical reforms are concerned. Instead, I want to be part of those in the driving seat to ensure that patients get quality services at reasonable prices. Healthcare finance will equip me with the prerequisite knowledge to be an effective financial manager in a hospice setting.
References
Brumley, S. (2019, March 08). Role of Financial Management in Health Care . Retrieved February 08, 2020, from Chron: https://smallbusiness.chron.com/role-financial-management-health-care-76263.html
Shah, N. (2013). Physicians’ Role in Protecting Patients’ Financial Well-Being. AMA Journal of Ethics, 15 (2), 162-166. Retrieved from https://journalofethics.ama-assn.org/article/physicians-role-protecting-patients-financial-well-being/2013-02
