The short essay aims to address the impact of various payment methods on strategic management in the healthcare industry. The report tries to provide insights into some of the actions healthcare organizations have taken in response to these twenty-first century threats. Strategic management in the current healthcare climate entails an aging population, high levels of uninsured citizens, high operational costs and shortages in key areas. "Studies have tried to elicit and predict reasons for high staff turnover in order to limit cost and adverse effects on morale, enthusiasm and organizational reputation." (Joshua-Amadi) The last thing healthcare administrators' need is more associated headaches and concerns in the payment processes or systems.
Federal and State Health Plans as well as private in
These cut backs are not the same as a physicians having to manage a budget - this is more in line with literally neglecting certain services in the interest of breaking even as per payment. The concepts of capitation, withholds, bonuses and utilization targets are all methods used by payment sources to dictate if and when hospitals or individual providers such as health clinics or doctor's offices skimp to save a buck. Consider for example the referral or gatekeeper process. When a gatekeeper decides to pass on certain tests or decides that a patient may not need to see specialists or need inpatient hospital services, he may or may not be motivated by the actual scenario because other incentives drive those referrals.
In conclusion, this report aimed to point out that existing payment processe
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