Health 515

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Dawn Milhouse
Feb 19, 2013
Assignment #3

Determine whether you would incorporate and state the advantages and disadvantages of doing so.
1. Becoming more efficient: Healthcare reform and all its provisions are already making hospitals find new ways to increase facility efficiency, better manage care and streamline costs. One item is renovating hospitals to cut down on operating expenses. Hospital executives allocated 21% of their budget to renovations compared to 16% for new construction in 2012 according to an ASHE 2012 survey. 2.New model of care: Hospitals are moving away from the contemporary fee-for-service model, a contributing factor for our excessive healthcare spending, and are switching to value based models of care. Before, the more services hospitals performed, the more money they would make. Now, that is changing with hospitals being held accountable for their patients. Patient treatment outcomes versus cost are compared and hospitals who meet the requirements receive a bump in federal payments.

The disadvantages are: Administrative costs: Hospitals and health systems will have more to do on their own as they take care of the influx of new patients. That is much more paper work, disease and care management, over-seeing and time dealing with Medicare for the millions of newly insured patients. Coverage: The sheer act of providing coverage to more people would produce a new order of challenges. If access can’t be improved then there is still a problem of providing care. 3.Cut in payments: Yes, there will be excessive decreases to Medicare reimbursements, around $112 billion in the ensuing years according to the Congressional Budget Office. There will also be a loss in tax breaks. These are viable methods the government issues to help hospitals meet their costs. Determine the feasibility of a profit or nonprofit organizational status for the facility.

This facility is a nonprofit hospital generally makes less than for profit...
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