Cost Containment/Finance Paper. Health, Medicine, Nursing Essay

The Role of Finance in Health Care
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The Role of Finance in Health Care
Abstract
Finance plays a significant role in health care that professionals need familiarization to enhance efficiency in the treatment procedures of various illnesses and the promotion of a healthy population. The knowledge helps providers in the delivery of high-quality health care services to all patients at any health facility without bias. All people in a demographic have the right to medical care regardless of the differences in financial capabilities, and the professionals should be well-equipped with the knowledge on how to ensure the achievement of this objective. For instance, hospitals institute cost-shifting to ensure that all people in a population receive desirable health care services, including the communities without insurance plans. Hence, finance plays an essential role in the provision of health care, and providers should have sufficient knowledge on the issue to ensure the delivery of high-quality services to all patients.
Cost containment and its impacts on health care
Cost containment is a method of maintaining and curbing unnecessary expense levels to improve profitability without long term negative impacts in an organization. However, the implementation may fail, resulting in damage in various fields such as health care. Cost containment is used to control the pharmaceutical cost in the national health context. The rise of this method is triggered by the need to sufficiently take care of issues like aging populations, the high prevalence of chronic diseases, inequalities, and meeting of all expectations in the health care system deliveries (Who Health Organization, 2019). For instance, the treatment of chronic diseases is expensive, and the healthcare departments need to come up with desirable methods to enhance its implementation at the lowest possible cost and also enhance efficiency in the exercise to avoid the occurrence of long term effects. The principal aim of such plans is the achievement of money value. However, cost containment hinders innovation in health care. In this case, most patients do not get the desired and expected treatment processes, resulting in prolonged time illnesses and more expenditure in eradicating the disease (Who Health Organization, 2019). Although cost containment is a method of minimizing expenses in health care, it hinders innovation in the settings leading to insufficient treatment of some illnesses.
The practices in cost containment
Although cost containment has negative impacts like under the treatment of some patients, it's still implemented due to the rising costs in health care. The approach helps employers in lowering the cost of health care. Consequently, most people in the population use the measure regardless of the underlying consequences, such as poor treatment of some ailments among employees. The action in cost containment involves various strategies. The first practice is offering health plans with high deductible values to cover workers in an organization with a similar program (Guttman, 2019). Secondly, companies may opt to shift the cost of health care to employees, such that the latter takes care of their medical expenses, othe...