Introduction
Healthcare organizations are individuals’ safety nets because they believe that clinicians can fix different medical conditions. Although most people view hospitals as a place to heal, they should understand that they are businesses (Birken et al., 2018). The reason is that healthcare settings have fiscal responsibility that should be maintained and quotas to be kept. Birken et al. (2018) explain that healthcare managers play a crucial role in ensuring that patients receive competent care. However, these administrators are faced with challenges such as Medicaid payments, payment structure changes, and a shortage of healthcare professionals.
Medicaid Payment
Medicaid payment is probably the most significant and recent challenge that hospital administrators face today. There are various reasons why the management of Medicaid is a difficult task. Clavel et al. (2019) state that the unemployment rates have drastically risen in the United States; therefore, individuals depend on the government for healthcare assistance. Medicaid reimburses services in healthcare organizations far less than health insurance forms purchased individually (Janati et al., 2018). As a result, hospitals that serve many Medicare or Medicaid patients have a likelihood of making less money. Additionally, the number of senior citizens who entirely depend on Medicaid is increasing because of the aging baby boomer population (Birken et al., 2018). These payment programs have spending caps; therefore, many patients bring in minimal revenue but expect to be served, making it difficult for managers to make significant revenue.
Pay Structure Changes
Pay structure changes pose a challenge because the model of pay-per-service previously used is outdated. Janati et al. (2018) expound that the new rules and regulations require healthcare facilities to charge fees according to the overall quality of care and patient outcomes. As a result, the consumer’s healthcare point of view has increasingly become more crucial. Therefore, hospitals are doing their best to provide competent care in the most comfortable manner (Clavel et al., 2019). For example, play areas and gardens are put up in children’s healthcare facilities, and spa environments are established in women’s imaging rooms. Some hospitals have also designated two beds in private rooms to make patients feel as if they are at home. Healthcare managers hope that these improvements will attract more persons in need of medical services to keep the organizations active.
Healthcare Professionals’ Shortage
The healthcare industry is expected to grow faster than any other sector worldwide. Clinicians also hope to be paid more to pay loans that facilitated their education. Therefore, hospital administrators strive to acquire competent workers in an area with an inadequate number of professionals and pay them well (Janati et al., 2018). Getting these employees is more complicated than putting up job advertisements. For example, healthcare managers need to have good relationships with local and national learning institutions that educate clinicians (Clavel et al., 2019). However, these organizations should offer benefits and good pay to sustain healthcare professionals. Therefore, the competition to recruit and sustain competent clinicians and fill vacant positions is a significant challenge for healthcare administrators.
Conclusion
In summary, hospitals are businesses, and the administrators face significant challenges in direct patient care services. Individuals such as senior citizens use Medicaid and Medicare programs increasing the possibility of hospitals making less money. Additionally, the traditional model that requires the patient to pay per service is out of date, and the new regulations approve payment based on patient care and outcomes. The healthcare industry is growing, and recruiting and retaining graduating professionals also poses a significant challenge for healthcare managers.
References
Birken, S., Clary, A., Tabriz, A. A., Turner, K., Meza, R., Zizzi, A., Larson, M., Walker, J., & Charns, M. (2018). Middle managers’ role in implementing evidence-based practices in healthcare: a systematic review.Implementation Science, 13(1), 1-14. Web.
Clavel, N., Pomey, M. P., & Ghadiri, D. P. S. (2019). Partnering with patients in quality improvement: Towards renewed practices for healthcare organization managers?BMC Health Services Research, 19(1), 1-12. Web.
Janati, A., Hasanpoor, E., Hajebrahimi, S., & Sadeghi-Bazargani, H. (2018). Evidence-based management–healthcare manager viewpoints.International Journal of Health Care Quality Assurance, 31(5), 436-448. Web.