Financial Strategies in Nursing
Complexity issues describe internal and external factors which influence decision making which is essential for improvement of health care services quality and service portfolio and effective communication with a client . Through value-based reimbursement, an organization will be able to effectively manage complexity issues , for example , provision of incentive enables the management to offer quality health service at affordable pricing . Implementation of budgeting strategies describes sustainable planning and allocation of the organization of resources for meeting organizational goals. The complexity issues and reimbursement are factors which help in the formulation of a sustainable budget (Leger, 2017).
Hospitals and health systems are shifting from volume-based environments to value-based markets. To prepare for this shift there are actions and measures that a health system can employ to facilitate a smooth change which includes the following .
- Developing online health platform which will be used to automatically store information on patient’s health and their progress. This will aid to easily track their patient’s progress hence provision of quality health services. Through the payment-for- performance portfolio the hospital will increase their financial incentives.
- Utilization of evidence-based health practices to improve the quality of health services in the hospital (Hpoe.org, 2017). For example, nurses in the hospital should rely on information from the National Nursing Database for certain clinical practices..
- Improving the efficiency of the hospital by investing in health insurance companies to generate income to overcome the economic burden of implementing value-based reimbursement model. With a reliable financing the hospital will be able to overcome the financial risks of bundle payments models.
- Establishing structures for medical practice and performance oversight, and cultivation of value system culture will facilitate cost saving and quality service delivery. Based on the pay-for-performance portfolio the hospital will be able to get more financial incentives due to the provision of quality health services.
- Changing of services provided such as pediatric services will make the hospital increase product portfolio (Hpoe.org, 2017).
Financial management and strengthening of finance are co-related. A sound financial management is developed based on transparency within the organization and making and attracting investments from profitable organizations. Investments from external investors are able to strengthen the finances of the organization. A strong financial base provides an organization with a platform for making investments and enhancing their services through new innovation
Honesty, dialogue and transparency are the pivotal factors for good management system. This vices can translate into to a cost-conscious environment and provision of quality healthcare services. This can be achieved through various means;
- A transparent and honest finance committee in an organization is able to allocate equitably funds to various committees’ without embezzlement of funds. This will be able to cut on the overhead expenses of the organization. The cover provided amount can be invested in motivating employees leading to their satisfaction and provision of quality service.
- Employing dialogue in dealing with employee grievances has been recommended by economist has the best means of increasing employees’ job satisfaction. When employees are motivated they produce quality services.
Shifting from the first curve to the second curve
The hospital is planning on shifting from a volume-based model to a value-based reimbursement model.
The new value-based reimbursement model is highly recommended by the American Hospital Association. Implementation of the model will promote the provision of quality healthcare services in the hospital. Also it will be able to promote the hospital public image due to quality services.
For the successful implementation of the value-based reimbursement model the hospital will have to create a medical and quality oversight structure. This measure will ensure adherence to service guidelines and reduction in operational expenses .
The hospital will be able to benefit from financial incentives from the government due to the provision of quality health services under the pay-for-me platform. Thus, increasing the revenue generated by the hospital.
An overall audit of the overall performance of the hospital will be used to access the effectiveness of the model to the hospital.
1. Belliveau, J. (2018). Understanding the Value-Based Reimbursement Model Landscape. RevCycleIntelligence. Retrieved 22 April 2018, from https://revcycleintelligence.com/features/understanding-the-value-based-reimbursement-model-landscape
2. Hpoe.org.(2017).Second Curve of Health Care Resources. Retrieved 22 April 2018, from http://www.hpoe.org/second-curve.shtml
3. Leger, J. M. (2017). Financial management for nurse managers: Merging the heart with the dollar. Jones & Bartlett Learning.