Talent War in the Health Sector
Felecia Kanneh
MHA/543
Dr. Joseph Harrison, Jr.
September 01, 2020
Introduction
The cost of health care is a buzzling topic around every kitchen table. Families are getting bankrupt and frustrated with the increased in the health care cost. This discussion has been held time after time by families, politicians, doctors and pharmaceutical companies but the results were discouraging mainly to the families who can afford hike in cost. Pharmaceutical companies and politicians played game with this pressing issue because of monetary gain they benefit from. This paper will identify three drivers of labor cost in healthcare service, evaluate the current industry solutions, predict the future changes that might accelerate the industry solutions.
Drivers of Labor Cost
Healthcare cost has been increasing over the years but there are driving forces that contribute to the increase in healthcare cost. One of three drivers is technology. The technological change is the most important driver of health care spending increases over time – a technical review panel convened to advise CMS on future health care costs trends concluded that about half of real health expenditure growth is attributable to medical technology (Leslie, 2019).
Also, two drivers that contribute to the increase in healthcare cost are mandated benefits and administrative expenses. Administrative expenses have been huge in the US healthcare industrial. The McKinsey team estimated that about 85% of excess administrative overhead can be attributed to the highly complex private health insurance system in the United States (Leslie, 2019). Mandated benefits that are in post by the local and federal government also help to increase the rise in healthcare. The more the government is involved with more regulation healthcare cost increased.
Current Industrial Solution
The current industrial solution in tackling the cost hike in healthcare can be engaged from different fronts. Healthcare providers hospitals and clinics may have diminished control over revenues, but they can control hospital operating expenses, which comprise all the costs of taking care of patients: labor, supplies, utilities, equipment, buildings, property, and capital (Moss, 2016). These operating expenses can be streamline and the waste can be extracted from the process which can reduce cost drastically.
Predict the Future Changes
Predicting the future changes have lot of components and variables that can lead to reduce in cost. The projection is due to the increase in the population and the rise in aging population and the surge in patients led to overtime for the healthcare professional (Buttigieg, 2015). The most important future change is to reduce the cost of healthcare. Taking into consideration, the usage of technology as it pertains to equipment, and software can be more meaningful to patients and doctors. These tools can be streamlined to reduce cost which can bring relief the patients. Another aspect to the future changes, as the population increases more innovation will surface and increase healthcare workers in increase based on the demand put on the industrial.
Conclusion
Healthcare is a right for a person to have – the cost of healthcare has become a headache for many and has cause a financial constraint to many households. Pharmaceutical companies, the government and doctors must work together to address this pressing issue to relief many from the financial dilemma.
Reference
Leslie, L. M. (2019). Physician foundation the rise in healthcare cost: A Typological Theory of Unintended Consequences. Academy of Management Review, 44(3), 538–563. https://doi.org/10.5465/amr.2017.0087.
Buttigieg, S.C. (2015). International Best Practices In Health Care Management. (Advances in Health Care Management, Volume 17) Emerald Group Publishing Limited, pp. iii
Moss, M. (2016). The Health Care Workforce of the Future. Institute for Healthcare Improvement, Retrieved from The Health Care Workforce of the Future
Felecia Kanneh
MHA/543
Dr. Joseph Harrison, Jr.
September 01, 2020
Introduction
The cost of health care is a buzzling topic around every kitchen table. Families are getting bankrupt and frustrated with the increased in the health care cost. This discussion has been held time after time by families, politicians, doctors and pharmaceutical companies but the results were discouraging mainly to the families who can afford hike in cost. Pharmaceutical companies and politicians played game with this pressing issue because of monetary gain they benefit from. This paper will identify three drivers of labor cost in healthcare service, evaluate the current industry solutions, predict the future changes that might accelerate the industry solutions.
Drivers of Labor Cost
Healthcare cost has been increasing over the years but there are driving forces that contribute to the increase in healthcare cost. One of three drivers is technology. The technological change is the most important driver of health care spending increases over time – a technical review panel convened to advise CMS on future health care costs trends concluded that about half of real health expenditure growth is attributable to medical technology (Leslie, 2019).
Also, two drivers that contribute to the increase in healthcare cost are mandated benefits and administrative expenses. Administrative expenses have been huge in the US healthcare industrial. The McKinsey team estimated that about 85% of excess administrative overhead can be attributed to the highly complex private health insurance system in the United States (Leslie, 2019). Mandated benefits that are in post by the local and federal government also help to increase the rise in healthcare. The more the government is involved with more regulation healthcare cost increased.
Current Industrial Solution
The current industrial solution in tackling the cost hike in healthcare can be engaged from different fronts. Healthcare providers hospitals and clinics may have diminished control over revenues, but they can control hospital operating expenses, which comprise all the costs of taking care of patients: labor, supplies, utilities, equipment, buildings, property, and capital (Moss, 2016). These operating expenses can be streamline and the waste can be extracted from the process which can reduce cost drastically.
Predict the Future Changes
Predicting the future changes have lot of components and variables that can lead to reduce in cost. The projection is due to the increase in the population and the rise in aging population and the surge in patients led to overtime for the healthcare professional (Buttigieg, 2015). The most important future change is to reduce the cost of healthcare. Taking into consideration, the usage of technology as it pertains to equipment, and software can be more meaningful to patients and doctors. These tools can be streamlined to reduce cost which can bring relief the patients. Another aspect to the future changes, as the population increases more innovation will surface and increase healthcare workers in increase based on the demand put on the industrial.
Conclusion
Healthcare is a right for a person to have – the cost of healthcare has become a headache for many and has cause a financial constraint to many households. Pharmaceutical companies, the government and doctors must work together to address this pressing issue to relief many from the financial dilemma.
Reference
Leslie, L. M. (2019). Physician foundation the rise in healthcare cost: A Typological Theory of Unintended Consequences. Academy of Management Review, 44(3), 538–563. https://doi.org/10.5465/amr.2017.0087.
Buttigieg, S.C. (2015). International Best Practices In Health Care Management. (Advances in Health Care Management, Volume 17) Emerald Group Publishing Limited, pp. iii
Moss, M. (2016). The Health Care Workforce of the Future. Institute for Healthcare Improvement, Retrieved from The Health Care Workforce of the Future