New Health Care Technology

Technology plays a vital role in people’s personal lives and almost every industry in today’s world. Healthcare technology is changing at a very fast rate with innovations in medical software, devices, and modifications on the administration of healthcare. The technology change is taking place both in care and financial perspective. Technology in healthcare facilities is the most important as it is responsible for saving many lives and improving others all around the world. The growth is majorly attributed by healthcare providers wanting to adopt different healthcare IT solutions. They want to meet the increased regulatory requirements for the safety and care of the patient and the need to improve the level of healthcare in hospitals. Besides, medical technologies improve the practice of these health practitioners as they learn better surgical procedures, diagnosis, and therefore improve patient care. Medical physicians and scientists are conducting research and using new systems to come up with new medicines and drugs which treat ailments or lessen symptoms of an illness. There is the improvement in the use of electronic medical records, mobile technologies, and telehealth services. Examples of these newly developed technologies include brain implants which prevent seizures, the contact lens made to detect glaucoma and artificial pancreas specifically for the diabetics. By using mobile devices, one can access any information they are looking for such as drug information. New technologies in health care are helping individuals in staying healthy, treat illness, provide a better diagnose of diseases and a better quality of life. Through these integrations and innovations, the medical industry and patients all over the world are happy as they are greatly benefiting.

Use of a new health care technology 

Technology is advancing day by day with innovations in every industry. In healthcare, technology is playing a crucial role in almost all the processes. The healthcare industry has experienced a proliferation of innovations aimed at enhancing life expectancy, quality of life, diagnostic and treatment options, as well as the efficiency and cost-effectiveness of the healthcare system. Technology advancement in the medical field has allowed better diagnosis and treatment of diseases. The continued use of electronic medical records (EMR), telehealth services and mobile technologies like smartphones has played a prominent role in improving healthcare services offered. The use of EMR has made it possible to have lab results, records of vital signs and other critical patient data into one centralized are hence transforming the level of care and efficiency received in a healthcare system. Physicians can also access any information they need within seconds from the internet. Technology has helped connect patients and doctors thousands of miles away through telecommunication which saves time and resources spend on traveling. Information Technology (IT) has increased the accessibility of treatment as it opens up more opportunities for exploration, innovation, and research this makes healthcare more driven than it was before. Technology has made it possible to monitor heartbeat, get the moment to moment blood pressure readings, body temperatures, and get oxygen concentration in the blood and study brain waves activity in a patient. People are walking with wristbands that monitor their sleep cycle and heart rates. This innovation has enabled patients to get better medical care as experts get the required data to conduct more research and make healthcare more efficient. The online databases on health issues help the health organizations analyze the information and end up making accurate predictions on medical trends. Some of these technologies in healthcare that are changing lives were present and what the scientists are doing is improving their performance (Cooper, 2016).

The financial implications it may have on health organizations’ administrative and operational costs

With the advancement of technology in healthcare, the health organizations aim at developing the enhanced efficiency of internal operations, cost containment, increased productivity and quality and outcomes improvement. However, technology is leading to a rise in healthcare costs depending on the type of technology that is developed and adopted. Since 1980, the spending on healthcare has been growing in many countries due to the adoption of the new technology. Many believe that technology development is responsible for the continued increased medical costs. New technologies add to health care costs although some may reduce health costs by replacing the expensive ones. In most health care organizations, payment is made for the each visit to the offices rather than for overall treatment of a particular health problem hence making it costly for the organization to adopt the new technology. With the adoption of new technologies, healthcare organizations are supposed to revise their cost effective mechanisms to minimize the costs. Technology can save its costs if it is adopted in a way such that it betters the organization of the healthcare system. For example implementing new technology which is relatively cheaper compared to the old technology. Health costs continue to increase leaving most public and private sectors ability to finance health care strenuous. It becomes difficult to provide the best available health care to most citizens because of the costs. Therefore, most patients are using insurance covers to afford offered health care. Health insurance is doing a tremendous job in removing the financial barrier to most consumers which in return induces the providers to provide expensive services. It may be confusing to assume that direct cost of the piece of the equipment or drugs is the main cause of increased health care costs. That is not entirely true since to implement the use of these technologies one requires both the operating costs and capital costs (Alliance For Health Reform, n.d).

Pros and cons of implementing new health care technology

Clearly the advancements in medical technology have generated many benefits to most people; however, there are negative effects from implementing new health care technology. To begin with, medical technology has led to improved health in most people. Medical technologies such as better monitoring systems or scanning equipment which are more comfortable are allowing concerned patients to spend less time while recovering and have more time in enjoying life. Medical scientists are developing new healthcare technology which helps in early diagnosis of some illness, prevent some before they occur, and develop new drugs which cure diseases or lessen the symptoms. These scientists use technology to examine diseases on a cellular level and work towards creating antibodies against them. For example, there is the implementation of nanobots in the blood which act like white blood cells and therefore fight bacteria and other pathogens. Secondly, patients to get better medical care as experts get the required data to conduct more research and make healthcare more effective using new technology devices. The online databases on health issues help the health organizations analyze the information and end up making accurate predictions on medical trends. Thirdly, the benefit of using electronic health records is that it allows for a computerized and orderly entry by physicians. That is there is efficiency in data collection. Placing lab orders and other imaging orders electronically decreases possible hand-written orders errors and also allows easy access to order entry. Using ERM services reduces time, errors and potential harm to the health of the patient if perhaps there is a drug interaction or duplicates prescription. Another way that the technology is saving time is aiding in the connection between patients and doctors thousands of miles away through telecommunication thus saves time and resources otherwise spent on traveling. Information Technology (IT) has increased the accessibility of treatment as it opens up more opportunities for exploration, innovation, and research this makes healthcare more driven than it was before (Alliance For Health Reform, n.d).

However, one of the challenges that are facing the provision of new technology in health industries is the increased hospital bills. Patients end up bearing most of the cost of implementation. Innovating and integrating new technology systems can be pricey, and the providers might decide to pass the cost onto the patients. This becomes difficult for less earning patients to acquire and enjoy the services. While it may be an advantage of saving time since one does not have to travel to access medical attention, it is a pro to some as there is no patient-physician physical interaction. To some people, face to face interaction is important in building up their trust towards the physicians operating on them while the health practitioner may need to do the physical examination on the patient. Carrying out physical examination on a patient who is miles away is rather challenging and although there is the use of technology to explain how one is feeling it may not be as satisfying as dealing with the person when close to you. Another disadvantage with the use of electronic sources is that there is no privacy. Health IT systems might jeopardize patients privacy. Lastly, a disadvantage of implementing new technology in healthcare is the effect of increased indirect costs in the health sector. New technology will require the health facility to employ more skilled hospital practitioners and train others on how to use the new equipment which results in increased capital expenditure for the health sector. The hospitals go through various changes which may be costly (Alliance For Health Reform, n.d).

Technology capital expenditure budgeting process and its impact

The preparation of a capital expenditures budget varies from one company to another depending on the size or the nature of the company. However, in all companies, the CapEx is determined by the top management and the managers or the owners of the company. The capital expenditures budget categorizes the amount a company is willing to invest in projects in cash and the long-term assets. During the budget process, some companies identify and approve the total amount for expenditures, while some companies have a different process for approving funds for specified items included in a capital expenditure budget. Most companies opt to include long-term assets in their capital expenditures budgets such as purchases of other companies, joint ventures, and leases of fixed assets. They also include new products, information technology items, and significant marketing program. This budget process involves the following steps. First, a financial evaluation is run to determine whether the returns on investment targets of the company are met. The top management team then carries out a qualitative review. The upper management must decide on whether it is worth the cost to involve large expenditures and whether they need financing or direct funding from the company. Capital expenditures budgeting is very important in future planning. Using the Capex budget, the company can view its current financial state and its hope for future growth. They also give the company a direction regarding their plan in future since most budgets are constructed as a five to ten-year plan. Therefore, it serves as a long-term goal or a five-ten year plan for a company. Capital expenditures budgeting process is important for the growth and operation of business from a sound financial position. The capital expenditures can, therefore, help a company in creating profits for a longer period than the current tax year (Shimamoto, 2012).

Conclusion

Technology advancement in healthcare has let many physicians improve disease diagnosis and treat their patients and saving countless lives while enhancing the quality of their lives. It does not matter whether the innovation is small like adhesive bandages or large technologies such as MRI machine all have an impact in the health sector. These innovations have brought positive results, and medical scientists should continue improving their practices by innovating and implementing the new medical technology. However, as much the benefits are overwhelming, medical technology is creating a big gap between the patients and the physicians. There is no physical interaction and relationship. For example with the use of robotic surgeries, the patient is all alone in the operating room while the physician is somewhere else like his home. It is good to embrace the new technology, but humanity should not let it change humankind way of life completely. Moreover, there should be a law enforcement to protect the privacy of the patients. Since the patients’ information storage is in a computerized manner, only authorized persons should access this information. Also with the case of increased health costs due to the improved technology, healthcare organizations are supposed to revise their cost effective mechanisms to minimize the costs to the affordability of all patients. Also, it is advisable that people take medical insurance covers which play an important role in the affordability of medical covers. The effect of technology on healthcare expenditures is the price inflation. Individuals should learn that any technology makes a significant contribution to health expenditure. Therefore, we should overlook the pros of the new technology implantation while looking for a solution and enjoy the cons of the same like better diagnosis and saving of lives.

References

Alliance For Health Reform. (n.d). health information technology. Retrieved from www.allhealth.org/publications/health_information_technology/health_information_technology_toolkit.asp

Cooper, A. (2016). Governing global health: challenge, response, innovation. Routledge.

Shimamoto, D. (2012). A strategic approach to IT budgeting. Journal of Accountancy Retrieved from http://www.journalofaccountancy.com/issues/2012/mar/20114439.html