DNUR 6211 Week 3 DQ
Healthcare Financing Concerns
- Rising Cost of Care
The issue of the increased cost of care is one of the most urgent ones of the U.S. healthcare system. It is projected that by 2028 the expenditure on healthcare in the U.S. will reach the apex of 6 trillion dollars per annum, more than any other developed country, more per capita. To take an example, the average cost of a hospital stay is significantly more costly than it was, sometimes to the extent that a patient has to incur thousands of out-of-pocket expenses despite insurance. This is purely a law of economics regarding price and scarcity. Nonetheless, the cost of healthcare service and medicine is usually determined by the equilibrium between demand and supply (Blandford et al., 2020). The high prices are attributed to the unavailability of advanced treatments and resources because the demand of the innovations is usually high compared to their supply.
- Unequal Access to Healthcare Services
Unequal access to healthcare has been a problem that has lingered over the years in the U.S and targets poor people, rural population, and racial or ethnic minorities. To have an example, the rural communities usually do not have enough healthcare systems and the people have to travel far distances to get the simplest care. Although urban populations tend to have high resources in terms of healthcare, the urban populations can also present certain barriers such as high prices or insufficient availability of providers to the low-income groups (Blandford et al., 2020). Healthcare providers and infrastructure are in short supply, which leads to the demand and supply being skewed in the rural areas. Rural patients are able to consult the specialists without necessarily having to travel long distances, whilst in-city patients save money as they do not have to visit a doctor.
- Workforce Shortages in Healthcare
Shortage of healthcare professionals, particularly nurses is another significant problem that is experienced in the U.S. healthcare system. Bureau of Labor Statistics states that the number of new registered nurses registered will exceed a million by 2030 to cover the gaps in the workforce and satisfy the increasing demand (U.S. Bureau of Labor Statistics, 2024). The shortages not only strain an already very small workforce, but also affect the ability of healthcare organizations to provide quality and timely care. This shows the economic theory of scarcity. The costs of wages and recruitment are soaring on the basis that the demand of skilled medical practitioners is too high and there is too little supply. Furthermore, the needs and wants are also taken into account in this case, as healthcare organizations are prone to recruit necessary roles at the cost of other functions (Blandford et al., 2020). Leaders in healthcare can do what they can to curb such workforce shortages as paying attractive salaries, offering professional growth opportunities, and enabling healthy work environments to curb burnout.
- Connection to Economic Principles
All these financing issues are entrenched in basic economics. Price increase is a sign of scarcity since the resources are scarce and the demand is high, which raises the costs. Not only cost, but imbalance in supply and demand as well as economic imbalance, which may limit the supply of certain needs to be satisfied by individuals, may also become barriers to healthcare access or the level of testing conducted. The shortage of the workforce makes it clear that the cost and operational impacts of scarcity including limited supply are likely to increase costs and make operations more difficult (Forster et al., 2022). Nevertheless, healthcare leaders should put these principles into consideration when coming up with solutions. Indicatively, the expansion of telehealth would address the needs of supply and demand by increasing access to services and better resource allocation. Telehealth could be used to reduce costs, which is responsive to the price sensitivity of the other types of care provision. In addition to that, these strategies will be useful in addressing workforce shortages by promoting friendly settings and applying technology to achieve quality care.
- Strategies for Improvement
Healthcare organizations must be holistic and innovative to solve these challenges. It is possible to implement value-based care models and negotiate more preferable contracts with pharmaceuticals and suppliers to cover the increase in the cost of care. Introducing the price measures transparency and restricting the excessive price increases on the essential medicines can also be a role of policymakers (Forster et al., 2022). Introducing partnerships with the community and investments into technologies is essential to dealing with unequal access. The gap can be addressed using mobile clinics, telehealth platforms and community health programs to cover the underserved population.
The increase in access to care may also be achieved through the expansion of Medicaid and offers subsidies to the low-income population. The employer organizations had to focus on the recruitment and retention strategies since they did not have the workforce to fill the positions. The scholarship offers, loan forgiveness programs and competitive remuneration can be used to attract new professionals in the field. It is possible to retain current employees by mitigating burnout by offering flexible work schedules, mental health, and positive organizational culture.
References
Blandford, A., Wesson, J., Amalberti, R., AlHazme, R., & Allwihan, R. (2020). Opportunities and challenges for telehealth within, and beyond, a pandemic. The Lancet Global Health, 8(11), e1364–e1365. https://doi.org/10.1016/S2214-109X(20)30362-4.
Förster, C., Duchek, S., Geithner, S., & Krägler, M. (2022). Developing an integrated framework of healthcare leaders’ resilience. Review of Managerial Science, 17(5). https://doi.org/10.1007/s11846-022-00572-2.
U.S. Bureau of Labor Statistics. (2024). U.S. Bureau of Labor Statistics. Bls.gov; U.S. Bureau of Labor Statistics. https://www.bls.gov/.