HEALTHCARE INDUSTRY

Risk Management Techniques to Curb Financial Crisis in the Healthcare Industry: Case Analysis

Risk Management Techniques to Curb Financial Crisis in the Healthcare Industry: Case Analysis

Introduction

The Hospitals industry includes firms licensed as general medical and surgical hospitals that provide surgical and nonsurgical diagnostic and medical treatment to inpatients with medical conditions. Hospitals maintain inpatient beds and usually provide other services such as outpatient services, operating room services and pharmacy services. Hospital provides diagnostic and medical treatment to in patients with type of disease or medical condition. This category include the structure of the hospital for providing long-term care for the chronically ill and those that offer rehabilitation, restorative and adjunctive services to physically challenged or disabled people.

The current crisis in financial markets and the global economy has a profound impact not only on the commitments of governments in the developing world but also on their national resources (Brock, 2007, 125). Households that are already most vulnerable to poverty are exposed to further impoverishment, in light of rising unemployment and falling incomes (Enthoven, 2003, 24).

Healthcare Rationing and Decision Making

Decision making is about what valuable healthcare will be made available and what will be withheld; how much of healthcare made available will be provided, and to whom such care should be given. It may also include deliberations regarding frameworks, criteria, standards, and procedures for setting institutional and societal policies to guide rationing decisions in general (Griffin, 2006, 49). Rationing related or even synonymous to resource allocation in healthcare management; priority settings uniformly used in health policy, and medical ethics to mean controlling access to healthcare (Menzel, 2007, 306).

Healthcare industry economics encompass the study of the demand and supply for medical services (physician services, services provided in hospitals and independent laboratories, pharmaceuticals, etc.) and for health insurance, as well as comparative studies of different health care systems. It also includes the study of the determinants of demand for health itself, global public health problems, and the non medical inputs into health, such as a decent living standard, education, physical and social environment, and personal lifestyle choices, to the extent that they are exogenous (e.g., independent of one's health status) (Cairns, 2002, 38).

Paper Objectives

This paper explores the key challenges to the healthcare industry. Risk management techniques have been highlighted to curb financial crisis in the healthcare industry. The paper revolves around the case of shifting of hospital from its main location to the downtown area. The decision has been made to close the local community hospital and to transfer services to the nearest acute hospital, which is 15 miles down the road. This hospital currently provides a minor injuries service, physiotherapy, an outpatient department, midwifery services and a child development centre.

Key External Drivers

Leadership in health care presents opportunity for unique challenge and self-fulfillment. It also calls on deep personal-strength, values, and vision. Lead academic medical centers, others are responsible for health systems comprising several hospitals, and still others work in long-term care services, rehabilitation and specialty hospitals, hospice care, outpatient and ambulatory care, teaching and ...