Financial Factors that Influence Health Care Research

Financial Factors that Influence Health Care
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Financial Factors that Influence Health Care
Introduction
The technological advancements witnessed in health care today are the real answers towards achieving a disease free world and the general improvement of the provision of health care. The advancement in the training of health professionals and the diverse acquired knowledge is also essential to the treatment and prevention of diseases. In the past, the number of health related deaths reported annually were high, people had little knowledge of disease prevention and treatment and the access to quality health care was still a major concern for most citizens worldwide. Today, the quality of health care has improved tremendously, although there is still more work to be done. This paper will describe several financial factors that influence the provision of quality health care services today, such as funding sources, reimbursement methods, economic factors, business influences, and cost containment and the influence it has on the role of a registered nurse (RN).
Funding Sources
The source of funding to advance health care is the main factor that influences the provision of quality health care in every nation. The resources allocated to cater for health care will determine the quality of health care provided and the technological advancements experienced in health care. Private funding through the various insurance covers is also a contributing factor. The availability of different health insurance options for people to cater for their own medical bills is important as it reduces the amount the state spends on people who cannot afford to pay their own medical bills. The socioeconomic status of an individual directly influences the quality of the health care they will receive. The more money someone has, the better the health care service they will seek. Investing in good quality health care is important in the treatment and recovery process for patients.
Reimbursement Methods
Hospitals get reimbursed from government-funded programs such as Medicare, Medicaid, county indigent programs and Healthy Families. Another important source of funding include Private Insurance revenues that contribute a significant portion of reimbursements required to run hospitals (California Hospital Association, 2017). The funding bodies ensure that hospitals are adequately reimbursed to cater for the cost of care of patients, and private payers and hospitals are not responsible for paying government underpayments. The Medicare program targeting the elderly often pays hospitals a specific amount of fee per hospital case. However, the figure may vary depending on cases such as hip replacement with or without complications (Reinhardt, 2009). The Medicaid program supported by the state and federal government also funds hospitals in a number of ways, including case-based payments also known as diagnostically-related cases (DRG.’s), payments for individual supplies and services (fee-for-service (F.F.S) payments, and a specific amount of dollars daily for inpatients (per-diem payments). according to Reinhardt (2009), the government unilaterally sets the payment levels, and in several states, these payments are ...