Financial Problems in Patient Care

Health care expenses in the United States present a complex and an intricate web involving various government agencies, payments made by insurance companies, and direct payments made by patients, at that, more than half of all healthcare expenses are covered by private insurances or individuals (Sherman & Bishop, 2012). Even with all the multiple sources of health care finance flow and an increase in patient numbers, hospitals across the entire U.S. are losing money as more and more patients turn out to be uninsured and unable to pay their bills (Sherman & Bishop, 2012). To adapt to the new rules of health care industry where costs are rising, many hospitals have opted to lay off some of the staff, specifically the full-time, registered nurses and replaced them with unlicensed assistive nursing staff (Thungjaroenkul, Cummings & Embleton, 2007). The health care is under unrelenting pressure to cut costs, Sherman and Bishop (2012) have presented interesting figures according to which “healthcare costs in the United States have skyrocketed to an average of $8,000+ per person each year. Left unchecked, they could rise to $13,000+ per person by 2018” (p. 32). Financial problems relating to patient care are becoming a more pressing issue that is putting a strain on the U.S. budget.

According to the statistical data provided by the Centers for Medicare and Medicaid Services and National Health Statistics group, the costs for health care amount to more than $2.7 trillion and make up around 18 percent of the GDP (Patel, 2013). This is a gigantic amount and a strain on the budget considering that 30 percent of these costs are believed to be wasteful spending relating to exorbitant administrative expenses, red tape, and fraud (Patel, 2013). Two types of budgets are normally used by healthcare organizations: an operational and a capital budget (Sherman & Bishop, 2012). The operational budget is used to maintain day-to-day costs while the capital budget is a more global concept that presents an overview of the planned costs for major equipment purchases, maintenance, construction of new facilities, and other (Sherman & Bishop, 2012).

The financial problem relating to patient care is becoming increasingly acute, and the impact on the budget makes itself felt. The capital budget of the overall patient care appears to be in significant risk due to extensive costs cuts. Recent lay-offs and replacing registered nurses with unlicensed staff with a view of cutting costs compromises the quality of patient care and overall health sector (Thungjaroenkul, Cummings & Embleton, 2007). Furthermore, Thungjaroenkul, Cummings and Embleton (2007) refer to various studies examining the impact of reducing the number of registered nurses, some of them reveal that “a decrease in number of RN leads to increased patient mortality, increased rates of failure to rescue, and increased medical errors” (p. 265). Aside from the decline in health care, due to financial problems in patient care, many hospitals have to put on hold many decisions regarding the equipment purchase (Sherman & Bishop, 2012).

In times of restricted health care funding, hospitals are compelled to make changes in the work environment and attempt to provide health care services for patients with financial problems. Admittedly, both the capital budget of the hospital and the budget of the country may be under strain due to increased costs. The financial problems experienced by patients should not be solved by reducing the RNs with higher qualifications and replacing them with non-licensed personnel as it leads to an overall quality loss in patient care.

Reference List

Patel, K. (2013). Containing Health Care Costs: Recent Progress and Remaining Challenges. Web.

Sherman, R., & Bishop, M. (2012). The business of caring: What every nurse should know about cutting costs. American Nurse Today, 7(11), 32-34. Web.

Thungjaroenkul, P., Cummings, G. G., & Embleton, A. (2007). Jannetti Publications, 25(5), 255-265. Web.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with My Homework Geeks
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat
Live ChatWhatsApp