The Quality of Hospital Financial Management - Research Proposal Example

Introduction

Undeniably, social amenities like hospitals are some of the most important infrastructure that cannot lack in the society. This is in the sense that hospitals have a direct link to human life since humans are prone to diseases as well as other outbreaks that require attention of the doctors from the hospitals. However, there exist levels of care that hospitals provide to the society (Ulrich, 2013). Examination of the financial characteristics as pertaining to health organizations relays more information on the service delivery of specific health organizations. Social obligations as well as responsibilities of the hospitals precisely reflect their sustainability. The hospitals financial management is not only the fundamental link of the contemporary hospital management, but also the rudimentary premise of the hospital management activities. Thus, under the prevailing circumstances of market economy, the quality of hospital financial management tends to have a direct link with the hospital healthy developments since it dictates the ability of the hospital to adapt to the needs of the market as well as modernization. Therefore, this paper will intensify much on the significant role played by the financial characteristics in health delivery, the importance of the managing cost, human resources and revenue in improving the balance of the quality care (Ulrich, 2013).

Statement of issue under investigation

The most effective financial management in public as well as private entities of health system needs a more steady as well as significant management tend to give more learning sites as well as a constant tracking progress on the incorporation of various advancement strategies in the systems. For instance, financial characteristics of healthcare delivery ought to be of high significance since the delivery of healthcare services does not conform any margin of lateness or error. Financial management, such as costs, revenues, investment decisions, and inventory management and human resource management are some of the important information regarding efficient delivery of the health care services. This makes this topic an important learning topic, as it is more relevant on the delivery of quality services to the society. The study done by Silveria, Alliegro and Nudd (2008), gives the number of the health organizations US and the reason behind their ever-increasing quality of services in the health service industry. He contends that incoherent analysis of the cost, revenue as well as the human resource is a factor that increases low quality service delivery. Besides, the study done by Shih, Daviset.,al (2008) asserts that the fragmented health care system leads to poor quality health care as well as high cost care. In addition, the study launched by Bernstein et al (2003) proves as an extensive study on the American national health care survey that is equally important in this study. Thus, efficient analysis of the studies provides varied information concerning the quality service delivery.

Literature review on the study

Weisfeld (2011) contend that management of the cost aids in improving the cost- efficiency of the healthcare delivery systems. The principle as of cost accounting dictates the ability of a particular firm to thrive despite the challenges that it can face in its operation. This is because adequate management of the costs of a health institution tends to provide a slowing rate of the expenditures while giving an equal rise on the profits of the company. The margins of the profits earned by a specific firm tends to have a close relation on the service deliberates of a specific firm. Weisfeld (2011) asserts that US has more than 1000 licensed health care organizations that provide health care services to the American population. This is a clear indication of the stiff competition that tends to exists in US concerning then thriving of the health firm. Thus, without proper management of the coast of a particular health delivery firm, there are high chances of the firm not reaching the standards of health advancement in US. Epstein, Jha., Orav,Liebman, Audet,Zezza & Guterman (2014) further contend that contend that one of the indication that a health delivery firm in making progress in its services is the constant advancement made in the purchase of sophisticated equipment for treatment. This can only be positively from the efficient cost management that tends to give equal rise of profit margins aiding in purchase of extra equipment for the health firm. In essence, the key objective of the low-cost producer in a given health care delivery organization is that it gives the company a greater profit per unit sale of its services than the surrounding competitors do at a given price level. This culminates to higher profit margins that give the health organization a chance to improve on its service delivery to attract more clients.

Bowers, Swan and Koehler (2010) argue that the revenue that any a health care receives in its operation has a close relation with the quality of services provided by a particular health delivery firm. Incontestably, in the present generation there have been a noted increase in cost of living that tend to really more information on most of the health care service industries in hiking up there standards of service delivery. This is because the increase in the cost of living has led to the raising need of a better health care. For instance, the current dominance of the insurance coverers that most people have in US in a vivid description of the type of health services that people have been conforming. This can only be significant with the in cares of revenue of a firm. Bowers, Swan and Koehler (2010) argue that one of the significant strategies of increasing the profitability is through the increment of the revenue. For instance, increase of the revenue can lead to higher profit margins of the company that prompts the managing director of a particular health delivery firm to increase the wages of its workers. This have a positive effect on the service output as workers feel motivated to perform to the best of their abilities. Besides, the increment of wages motivates the employees to an extent that they can be willing to turn to at any time in cases of an arising emergency in the health care centers. The increased performance created by the employees tends to be in harmony with the rising standards of living in the modern society. For instance, being the use has the most advanced health care system in the World, the quality of the services provided by both the public as well as the private hospitals are comparatively better. In essence, through the increment of the revenue of then health organization, several factors tend to emanate which leads to heightening of the quality of services provided by the healthcare. For instance, increment of the wages of the workers is a noted away of motivating the workers to better performance. However, this is only realistic with the high profitability that the health organization receives (Langabeer & Helton, 2015). Kessler (2015) notes that the people who make up work force in organization are important in improving the quality of the services provided by a health organization. The HR management of the any set of organization tends to have the duty of recruiting, screening interviewing as well as placement of the workers. Hence, the entire work force that exists in any set organization has to undergo through the scrutiny of the HR officials. Kessler (2015) asserts that a failure in the operation of the HR department corresponds to the failure of the entire organization. Similarly, the HR department in the health care organizations tends to behave in a similar manner such that the quality of the services produced by the workers depends on the management strategies of the HR department. For instance, consider the recruiting process of the as an element of the human resource. Ulrich (2013), relay more information on the issue of recruiting by contending that the initial stages of addition of values as delivering of results emanates from the appropriate process applied in recruiting process. This translates to the health organization scenario since vigorous as well as competitive nature of the recruiting process leads to choosing of appropriate workers. Moreover, efficient recruiting process is not the only sure way of heightening quality of services in a health institution but the training that given to the new recruits will tend to be more important. Thus, workers will come to know objectives of health organization hence develop a culture of working toward the set goals of the company. For example, a well a developed health institution will tend to higher more doctors as well as the nurses such that each patient has his or her own personal doctor and a nurse. This situation presents the type of quality of health care delivery that the modern generation requires concerning the increased standards of living of people especially in US. Mills (2014) notes that this type of quality in the delivery as of health care is only evident in developed countries. This is attributable to the strong economic status of the countries as well as the efficient economy of the health organization favors their acquisition of high performing workers. Thus, human resource factor is an appropriate factor to consider in increasing the quality of the errands of a health firms.

Further, in the study by Silveria, Alliegro &Nudd (2008) entails a case study that is helpful in illustrating the essence of highly performing workforce, availability technological advancement as well as the need for operational efficiency in the health sect. The study applied financially conservative methods in making its findings. The partners embarked on developing a more severe business case to approve that supporting the assets in the reengineering and technology. The business case study was based on predicted 7% to 10% reduction in operating costs and a 12% up to 15% upgrading in financial losses associated with severe debts and denials. According to the 70 days sampled of the study on the patient experience, the findings identified that the improvement of the patient experience needed the improvement of operational efficiency, enhancing technology as well as integrating the employee training.

In addition, in Bernstein, Hing et al (2003), entails yet another study that was vital in demonstrating the importance attached to an institution’s financial base. According to the survey done by national health care services (NHCS) on 1900 nursing homes in U.S, it showed that the high number of days taken by the patients in the nursing homes emanates from the poor quality of the health centers. This is because the poor management of the financial status of the nursing’s homes limits chances of improvement.

The study by Shih et al (2008) entails yet another case study to illustrate the importance that financial management have when it comes to an organization’s performance. The survey done is US in about 100 health centers showed that the degrading performance of non performing health centers originates from poor examination of the financial characteristics that hinders provision of high quality services to the patients.

Conclusion

In conclusion, examination of the financial characteristics of a health firm dictates the type of service delivery that the specific firm offers to the customers. For instance, cost efficiency dictates thriving of a health institution in the low-cost operations of the company activities will tend to increase profitability as well as revenue. This have a positive impact of the economic stability of the firm that give the firm opportunity to purchase the rising sophisticated equipment of treatment that increases the quality of treatment offered on the patients. In addition, the stable economic status of the health organization goes the firm an opportunity to employ more doctors as well as nurses. The training of these workers is only efficient when there is enough funds to undertake the training. All these culminate to the improvement of the quality of services offered by a health organization. For that reason, it is not possible to have a thriving health sector when there is no regard to issues of managing cost, human resources as well as revenue in improving the balance of the quality care (Ulrich, 2013).