Essay Sample on Modern Healthcare: CEOs Facing Strict Measures to Meet Medical Demands

Introduction

In modern healthcare systems, most healthcare organizations have been faced with stringent measures to undergo maintenance and infrastructural transformation to meet the country's medical or care demands. Therefore, the CEOs have been faced with formidable meetings, budgeting, and implementing budgetary allocation to meet these growing medical demands. For instance, Per White and Griffith (2016) assert that the healthcare facility's effective governing has to have a defined set of accountability of an all-inclusive and admirable financial ascendency. Thus, this paper's primary focus is to develop a well-structured strategic budget goal, and its effectiveness in a multi-complex healthcare facility that includes rehab, ambulatory care, and outpatient facilities.

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Strategic Budget Goal for Rehab, Ambulatory Care, and Out-Patient Facilities

Rehabilitation Facility

Rehab is a containment facility within a healthcare organization that seeks to restore the patient's old ways before indulging in crooked ways that jeopardize his or her health. The facility is essential because it provides exceptional patient care and services based on evidence-based practices and research on rehabilitation measures (Krug & Cieza, 2017). The ability to follow a patient throughout their need for rehabilitation services allows the facility to provide all necessary care and services for the patient, maintain essential allocations for accreditation purposes, and account for revenue brought into the facility (Krug & Cieza, 2017). These measures are critical to the facility budget as they allow for the approval of facility operations and contribute to the organization's future growth and development.

Income and expense budget. Within the rehabilitation facility, significant components to be included in an income and expense budget include revenue producers and expenditures, including occupational expenditures and non-salary costs. Revenue producers remain centered on charges that occurred by the patient (Santilli & Vogenber, 2015). Revenue involves the income the facility will obtain for a patient stay or outpatient follow-up visit. For instance, any necessary procedures performed, or an inpatient hospitalization at the facility and reimbursement from plans such as a private insurer, Medicaid or Medicare, managed care plans, and self-pay or uninsured (Santilli & Vogenber, 2015). The facility's revenue process can be estimated from days of service for each patient, services/procedures provided, and the average daily census for the facility.

In contrast, expenses included in the budget are those accrued through employee costs and non-salary costs. These include the earnings and income of staff, including mandatory overtime, shift differentials, holiday pay, essential orientation or compulsory education, in-services or seminars, contract employees, and an employee benefits package (Santilli & Vogenber, 2015). The healthcare staff's earnings and income are a large expense and considerable cost when attempting to offset incoming revenue.

Ambulatory Care Facility

A strategic budget goal for ambulatory care centers includes methods to enhance the quality and usefulness of care delivered to primary care patients to decrease inpatient hospital stays within the healthcare organization (Janah et al. 2020). The objectives include maintaining a focus on preventative care and chronic disease management and maintaining quality while reducing costs. Within the ambulatory care center, a paramount goal for providers, patients, and stakeholders must be to develop and expand upon patient care quality and worth.

Income and expense budget. The ambulatory care centers' significant components in an income and expense budget include revenue producers and expenses such as occupational expenditures and non-salary costs. Within ambulatory care centers, revenue producers focus on charges from the patient population. This involves the income the facility will obtain for patient visits and any required procedures delivered. The facility's income process is estimated from the overall care provided, and the number of patients serviced (Bundorf et al., 2016). Expenses included in the budget are those accrued through operating costs and non-salary costs. Occupational expenditures include employee costs to run the facility. Like the rehabilitation facility, staff's ambulatory care earnings and income involve an annual salary, overtime, shift differentials, holiday pay, essential orientation or mandatory education, in-services or seminars, contract employees, and an employee benefits package (Cowing et al., 2019). Again, this accounts for a significant point of expense for the majority of healthcare facilities.

Outpatient Surgery Center

An outpatient surgery center within a multi-complex health care system offers a collection of outpatient surgical services and necessary means of recovery to assist the patient in the transition home following any surgical intervention. Therefore, an outpatient surgery center's strategic budget goal includes working towards improving and expanding surgical service operations to attain the majority of operations/services over a selected timeframe. The objectives involve evaluating and fostering a strategy to expand surgical services offered, heighten outpatient experiences and services, and create shared associations with all personnel to recognize and initiate growth prospects.

Income and expense budget. Revenues within outpatient surgical centers are dependent upon the number and type of surgical procedures performed (Santilli & Vogenber, 2015). The costs within an outpatient surgical center resemble the other two facilities regarding employee costs consisting of salary, compensation, and benefits. However, differing aspects include the expenses within the outpatient surgical centers. Expenses become based on the surgical procedures performed, necessary equipment to complete specific procedures, different personnel required to carry out surgical interventions, necessary sterilizing equipment and staff, and general facility repair and maintenance. Although many similarities exist between the various departments, the total expense in delivering specific care and services is fundamental when identifying the different budgeting needs between rehabilitation facilities, ambulatory care centers, and outpatient surgical centers.

Performance Measures

Performance measures are aspects of an organization's strategic plan and budgeting. Performance measures can be constructed on the goals and objectives that align and connect with the organizational mission and purpose. Performance measures enable departments to measure specific outcomes and utilize the information for program advancements (Moura et al., 2020). Regular use of performance measures allows organized gathering, evaluation, and conveying of data, which helps trace various means utilized, labor generated, and continual measurement of outcomes accomplished within the healthcare organization. The information obtained through performance measures on budgeting can be used effectively as a source for strategic and operational planning and decision-making. Therefore, performance measures allow chief financial officers to recognize problems or necessitate change when items are measured and compared frequently.

Policy, Accountability, and Monitoring

Budgeting and accountability within an organization can be a cumbersome and lengthy task to help in budgeting policies, monitoring, and accountability measures. Policies define the wide-ranging guidelines for budgeting and the organization's budget practices (Liaropoulos & Goranitis, 2015). The policies and processes established by the organization about all departments and leadership within the health care organization. Along with the forming of policies and budgets, development is an accountability factor. Walsh (2016) argues that monitoring of policies and strategies is essential within the organization in establishing goals and assists in recognizing changing patterns or conditions that need remedial action. Thus, set policies lead the groundwork, approval of fiscal procedures, and application of operating budgets, as well as identified roles of the departments and individuals partaking in the budgeting process.

Financial Profits or Losses

The economy and the effects of healthcare, such as The Affordable Care Act, Centers for Medicaid and Medicare Services, and managed care payers, have greatly affected healthcare organizations. Impacts can be felt throughout the organization, from achieving goals to patient care services and strategic planning and decision making. Therefore, adaptation must be made within the organization to account for financial gains or losses because of reforms such as The Affordable Care Act, Centers for Medicaid and Medicare Services, and managed care carepayers to account for these changes. The healthcare organization must reconsider methods utilized within community health and benefits programs (Vogus et al., 2020). A focus on population health and wellness to establish the mission, vision, and values is an essential factor. For adaptation to occur, the healthcare organization must participate in interdisciplinary partnerships with various primary health clinics, public and social services, community health divisions, and other impacting sectors within the community.

Conclusion

In summary, financial procedures and processes impact critical roles in delivering health care and the decision-making process. Therefore, leadership must comprehend the fundamental notions of healthcare finance. Necessary leadership in understanding these financial processes and the ability to enhance an organization's economic welfare is the chief financial officer's role. The chief financial officer is a crucial role within the organization. It significantly impacts the strategic planning and budgeting processes to maintain the organization's established mission and vision. Strategic planning and the budgeting process continually undergo revision or change to account for the demands met within the health care system.

References

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Cowing, M., Davino-Ramaya, C. M., Ramaya, K., & Szmerekovsky, J. (2019). Health Care Delivery Performance: Service, Outcomes, and Resource Stewardship. The Permanente Journal, 13(4), 72–78.

Janah, A., Le Bihan-Benjamin, C., Mancini, J., Bouhnik, A. D., Bousquet, P. J., & Bendiane, M. K. (2020). Access to inpatient palliative care among cancer patients in France: an analysis based on the national cancer cohort. BMC Health Services Research, 20(1), 1-12.

Krug, E., & Cieza, A. (2017). Strengthening health systems to provide rehabilitation services. American Journal of Physical Medicine & Rehabilitation, 96(6), 438-439.

Liaropoulos, L., & Goranitis, I. (2015). Health care financing and the sustainability of health systems. International Journal for Equity in Health, 14(80), 1-4.

Moura, L. F., de Lima, E. P., Deschamps, F., Van Aken, E. M., Da Costa, S. E. G., Treintaa, F. T., ... & Silva, R. A. (2020). Factors for performance measurement systems design in nonprofit organizations and public administration. Measuring Business Excellence.

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