manavarro2
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- Nov 26, 2017
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One of the top expenditures of the US Economy is healthcare cost which is driven by both operational cost of healthcare organizations and health deliveries. According to the American Hospital Association and the Health Management Organization, 25% to 27.1% of expenditures are due to the administrative cost. This cost can account for over $200 billion dollars in expenses for administrative cost (Guerin-Calvert & Israilevich, 2011, "The Top Costs Associated with Running a Hospital - Healthcare MBA GWU", 2017). For a healthcare organization, either nonprofit and profit, administrative and workforce cost is high because of the roles of personnel which allows a hospital to function and be operational.
However, this cost can be driven high due to the inflated cost of desired job positions, over payed employees, and lack of workforce to fill employment needs. The allocation of money for administrative cost in America is the highest in any country. Many of these job positions that are financial draining on the healthcare system can be reestablished and conserve money. The School of Business at George Washington University has found that if a healthcare administrator gained more knowledge in business it may help increase money management skills in a hospital setting, as well as replace two job titles for one lowering the expense. Hiring an administrator with duel degrees like a MBA and MHA or program that has an emphasis on both business and healthcare administration can be beneficial for an organization and decrease the cost of employees ("The Top Costs Associated with Running a Hospital - Healthcare MBA GWU", 2017).
Since wage cost for a hospital adds up, once more a remedy for the decrease in over employment of positions is to know how to manage appropriately and hire more qualified employees that can play more than one role. The ability to manage employee job roles as an administrative role and to lessen roles needed for hiring will lower the cost of expenses ("Seven Ways for Hospitals to Control Overhead Expenses", 2017).
Another way to reduce the cost of employment and administrative cost would be to utilize technology more so it can lower the need for many job positions that can be by IT or a person who can run the information technology. Technology is enhancing the healthcare community and utilizing IT will help reduce cost ("Seven Ways for Hospitals to Control Overhead Expenses", 2017).
The future cost associated with running a healthcare organization will not change, expenditures tend to increase annually. Since hospitals are one of America’s largest employers it could be beneficial if policy providing grants and other sources of money to these organization for stimulating the economy and providing employment for the communities it service could be helpful to all ("The Top Costs Associated with Running a Hospital - Healthcare MBA GWU", 2017).
References
Guerin-Calvert, M., & Israilevich, G. (2011). Assessment of Cost Trends and Price Differences for U. S. Hospitals. Washington, DC: American Hospital Association. Retrieved from http://www.aha.org/content/11/11costtrendspricediffreport.pdf
Seven Ways for Hospitals to Control Overhead Expenses. (2017). Health Management. Retrieved 26 November 2017, from Seven Ways for Hospitals to Control Overhead Expenses
The Top Costs Associated with Running a Hospital - Healthcare MBA GWU. (2017). Healthcare MBA GWU. Retrieved 26 November 2017, from The Top Costs Associated With Running a Hospital - Healthcare MBA GWU
However, this cost can be driven high due to the inflated cost of desired job positions, over payed employees, and lack of workforce to fill employment needs. The allocation of money for administrative cost in America is the highest in any country. Many of these job positions that are financial draining on the healthcare system can be reestablished and conserve money. The School of Business at George Washington University has found that if a healthcare administrator gained more knowledge in business it may help increase money management skills in a hospital setting, as well as replace two job titles for one lowering the expense. Hiring an administrator with duel degrees like a MBA and MHA or program that has an emphasis on both business and healthcare administration can be beneficial for an organization and decrease the cost of employees ("The Top Costs Associated with Running a Hospital - Healthcare MBA GWU", 2017).
Since wage cost for a hospital adds up, once more a remedy for the decrease in over employment of positions is to know how to manage appropriately and hire more qualified employees that can play more than one role. The ability to manage employee job roles as an administrative role and to lessen roles needed for hiring will lower the cost of expenses ("Seven Ways for Hospitals to Control Overhead Expenses", 2017).
Another way to reduce the cost of employment and administrative cost would be to utilize technology more so it can lower the need for many job positions that can be by IT or a person who can run the information technology. Technology is enhancing the healthcare community and utilizing IT will help reduce cost ("Seven Ways for Hospitals to Control Overhead Expenses", 2017).
The future cost associated with running a healthcare organization will not change, expenditures tend to increase annually. Since hospitals are one of America’s largest employers it could be beneficial if policy providing grants and other sources of money to these organization for stimulating the economy and providing employment for the communities it service could be helpful to all ("The Top Costs Associated with Running a Hospital - Healthcare MBA GWU", 2017).
References
Guerin-Calvert, M., & Israilevich, G. (2011). Assessment of Cost Trends and Price Differences for U. S. Hospitals. Washington, DC: American Hospital Association. Retrieved from http://www.aha.org/content/11/11costtrendspricediffreport.pdf
Seven Ways for Hospitals to Control Overhead Expenses. (2017). Health Management. Retrieved 26 November 2017, from Seven Ways for Hospitals to Control Overhead Expenses
The Top Costs Associated with Running a Hospital - Healthcare MBA GWU. (2017). Healthcare MBA GWU. Retrieved 26 November 2017, from The Top Costs Associated With Running a Hospital - Healthcare MBA GWU
