HCA-24

Contempory Issues in Healthcare America is facing a shortage; a shortage of Physician’s. “The Council of Graduate Medical Education released a report predicting a shortage of about 85,000 physicians by 2020.” (Cross, 2007) With the start of Affordable Health Care and the increase in the aging population there are just not enough providers to go around. In this essay we will discuss how the shortage affects healthcare from a business aspect; how non-profit and profit organizations impacted, what the responsibilities of the management staff is, and what rules and standards the financial management must address with this problem. In, the end we may not have a answer to this problem but we will have a better understanding of what the financial management must juggle in order to run a successful department or organization. The shortage of physicians is likely going to affect every aspect of healthcare. Profit and Nonprofit organization will both be affected some ways similar and in some ways different. Not-for-profit organizations, “are owned by the entire community rather than by investor-owners,” and profit organizations, “earn profits that are distributed t the investor-owners of the firms or reinvested in the firm for the long term benefit of these owners.” (Cleverly, 2011, pg. 8) The Affordable Health Care System has made a large impact on how organizations are reimbursed which is the major interest to both organizations. The shortage comes at a bad time while our nation is trying to improve access to care and improve quality. The lack of Physicians is causing an increase strain to business not just for profit but also nonprofit hospitals. “Investor-owned companies have powerful motives for expansion. The price of their stock—and, therefore, their continued access to equity capital, as well as the value of the assets of their stockholders—depends heavily on growth in earnings.” (Institute of Medicine, 2006) Physicians have the ability now to decide where they want to practice and for how long. Before they stayed in the area they were raised or grew up but lately Physicians are able to be choosey when it comes to where they work and profit organizations have more to offer than nonprofit organizations. Many nonprofit organizations receive tax breaks and incentives for supplying care to the community. Medicare Part B, “agrees to always accept assignment of claims for all services furnished to Medicare beneficiaries.” (Cleverly, 2011, pg.85) Secondly, the discussion will turn to that of the perspectives and responsibilities of the financial management staff. The management staff has two categories; “financial accounting and managerial accounting.” (Cleverly, 2011, pg. 182) The financial staff is responsible to aid in the decision making process. As it would relate in the current healthcare issue; meaning the shortage of physicians would be finding the money and arranging in the incentives that could be offered to potential physicians. “In any industry, financial management involves handling routine financial operations, such as negotiating contracts, making cash available for expenses such as payroll, and maintaining a cash cushion for unexpected costs.” (Brumley, 2016) When it comes to trying to get providers to come to an agreement for incentives like pay and benefits it is the financial management staff to find the sources to make it possible. Lastly, there are certain standards, rules, and regulations that the financial management team must follow so that will be discussed next. “The term Generally Accepted Accounting Principles (GAAP) is often used to describe the body of runes and requirements that shape the preparation of the four primary financial statements.” (Cleverly, 2011, pg.182) GAAP helps keep companies in compliance with rules and regulations. It is now mandatory for U.S. Public companies to follow the GAAP standards although they can choose with which companies they use to comply. When discussing nonprofit healthcare organizations they have certain state-specific laws that must follow to remain tax exempt. “For exemption under the federal tax system is under 501(c)(3) of the Internal Revenue Code. The Internal Revenue Service (IRS) not only enforces the Code but provides guidance to assist in understanding the rules surrounding tax-exempt organizations.” (Cleverly, 2011, pg. 100) How does this apply to the current issue we are discussing? If financial management staff needs to commit to so many rules and regulation they must find money somewhere within the budget to make the providers happy as well. Many institutes have implemented adding help with the shortage by allowing the use of Physician Assistants and Certified Nurse Practitioners. This allow for filling the gaps and not spending as much of the budget while also allowing quality and access to be increased. In conclusion, the financial management team has many avenues they need to follow in order to help change the current issue of having a shortage of physician. While we could talk about how this is going to affect the patient it is also equally important to discuss the financially management aspect of healthcare and have an understanding of how this area of the system reacts to maintaining and fixing this issue. Finding the finances within profit and nonprofit organization is always a struggle and an important issue to keep in mind while deciding how you are going to run organizations. It is also equally important to have an understanding of the rules, regulation, and standards that must be followed by management staff. There are many issues that as a financial manager you will be faced with on a daily bases many of which will never be solved but to be aware and be able to adjust your plan in order to make your organization a functional system is of outmost importance. “The AAMC currently projects a shortage of 124,000 physicians by 2025; current capacity would produce only 50,000 by that year.” (Ruiz, 2008) Whatever the decision is to aid in the current issue there is no doubt that we must all step up and aid in rebuilding of healthcare system.

References

Cleverley, W., Cleverley, J., Song, P. (2011). “Financial Organization” Essential Of Health Care Finance, 7th ed. Jones & Bartlett Learning: Sudbury, MA.

Institute of Medicine (US) Committee on Implications of For-Profit Enterprise in Health Care; Gray BH, editor. For-Profit Enterprise in Health Care. Washington (DC): National Academies Press (US); 2006. 10, Summary and Conclusions. Available from: http://www.ncbi.nlm.nih.gov/books/NBK217912/

Role of Financial Management in Health Care. (n.d.). Retrieved June 19, 2016, from http://smallbusiness.chron.com/role-financial-management-health-care-76263.html

What Doctor Shortages Mean For Health Care. (n.d.). Retrieved June 19, 2016, from http://www.forbes.com/2008/12/02/health-doctor-shortage-forbeslife-cx_rr_1202health.html