Cost Cutting Strategies for Non-Profit Hospitals

The study focuses on the financial success of nonprofit hospitals, highlighting issues and trends that affect their performance. It notes that technological advancements are a prominent trend in the hospital industry, but nonprofit hospitals struggle to keep up with proper equipment for patients due to funding constraints. The study also discusses opportunities and challenges faced by nonprofit hospitals in the 21st century, emphasizing the need to utilize opportunities effectively while mitigating threats. Finally, it touches on the merits and demerits of healthcare systems today.

Running Head: HEALTHCARE FINANCE PROJECT 1
Healthcare Finance Project:
Analysis of Health Care Environment
Name of the Student:
Name of the University:
Course Number:

HEALTHCARE FINANCE PROJECT 2
Table of Contents
A. The issues and trends in the healthcare environment that may affect the financial..............3
Success of nonprofit hospitals.........................................................................................................3
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Analysis of Health Care Environment.............................................................................................3
Healthcare challenges and trends.................................................................................................3
Challenges that are affecting the success of the nonprofit hospitals...........................................5
B: Financial threats and opportunities a nonprofit hospital faces in the 21st century.....................6
Introduction......................................................................................................................................6
Discussion........................................................................................................................................6
Challenges....................................................................................................................................6
Opportunities...............................................................................................................................8
C: Advantages and disadvantages for joining the healthcare organization, such as, regional
medical center, medical alliance or group of nursing home............................................................9
Introduction......................................................................................................................................9

HEALTHCARE FINANCE PROJECT 3
Discussion........................................................................................................................................9
Advantages..................................................................................................................................9
Disadvantages............................................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

HEALTHCARE FINANCE PROJECT 4
A. The issues and trends in the healthcare environment that may affect the financial
Success of nonprofit hospitals
Introduction
This section of the report focusses on possible issues and trends that are affecting the
financial success of the nonprofit hospitals to a great extent. In the recent times it has been
observed that nonprofit hospitals have been mainly formed with an intention to serve the people
free of cost who do not have required money for getting themselves treated, but, unfortunately
the most of the nonprofit hospitals are facing challenges on a daily basis. The above-mentioned
challenges are mainly in form of managing the endowment funds efficiently, raising required
money, appointing volunteer labor and searching the donation of goods.
Discussion
Analysis of Health Care Environment
It has been already said that there are some of the trends and issues in the environment of
the healthcare is greatly affecting the financial success with regards to the nonprofit hospitals.
Healthcare challenges and trends
Globally it has been greatly noticed that all of the health economies are facing more or
less the same challenges. Furthermore, the entrance of customer technology is giving a lot of
challenges to the healthcare hospitals. Firstly, it has been noticed that there is a increasing in
demand pertaining to the healthcare delivery hospitals and it is the phenomenon that is taking

HEALTHCARE FINANCE PROJECT 5
place in each and every country across the globe. However, people are living much longer than
they used to live in the earlier times due to the advancement of technology in the healthcare
segment (Brookhart, Stürmer, Glynn, Rassen, & Schneeweiss, 2010). On the other hand, the
people are living longer but they are also living with a lot of chronic diseases. So, challenges
come from societies where new kind of diseases have found. Researchers thus need to try foe
new medicine which may not be found curable from those diseases. So, all kind of pressures then
come from those sufferring families towards the health system. For a well-run health system it is
an absolute necessity to make sure that the staffs are properly trained as well as equipped and do
the correct tasks as required. It also reveals an ethical challenge as some of the countries try to
recruit the nurses and doctors for filling up the gap from the other countries by keeping out those
societies of the professionals related to the healthcare (Au, Liang, Liu, Lu, & Ning, 2018).
Secondly, quality also plays an important role for the healthcare hospitals especially for the non-
profit hospitals. In the current times, the patients have begun to exercise in terms of with whom
they will be involved in the healthcare hospitals and their right to choose the services. The
patients also highly demand the transparency of the processes and data in the hospitals.
Throwing light on the above-mentioned discussion it can be said that some of the healthcare
hospitals are lagging behind in this segment and they are struggling a lot in terms of proving
high-quality services so that their patients will be benefitted to a great extent. Arguably, it has
been also noticed that there are a lot of hospital acquired infections to the patients, wrong
surgery, medication errors and also other human related errors that has increased (Frith, 2018).
The global healthcare trends in the recent times are as follows: there is a rise of the social
media and informed patients. In the recent times, the patients are becoming more and more
informed day by day because the healthcare hospitals are also quite active currently in the social

HEALTHCARE FINANCE PROJECT 6
media. Secondly, the healthcare hospitals are also working as a network by being the part of the
communities and all of the communities are facing some kind of either disease or the
demographic challenges (Fingerhut & Abdou, 2017).
Challenges that are affecting the success of the nonprofit hospitals
There are a large number of challenges that are generally faced by the nonprofit hospitals
in the current time that is affecting their financial health to a great extent. Firstly, the healthcare
providers are struggling with the public program reimbursement rates and insurance
reimbursement rates but the nonprofit hospitals are struggling hard in this platform (Cleverley,
2017). It is already known that the nonprofit organization often tend to work with the uninsured
or the low-reimbursing government assistance benefits for instance the Medicaid. It has been
also noticed that the profit-providers and the private providers tend to move away the patients
that do not compensate well and in this particular scenario there are many nonprofit hospitals
who struggle and strive to work with everyone around them on a smoothly basis. Throwing light
on the above-mentioned segment it can be said that making the above-mentioned scenario work
is a financial challenge for the nonprofit hospitals (Thakur, Hsu, & Fontenot, 2012). Secondly,
the technological advancement is also taking place in the entire healthcare industry in a rapid
way. Therefore, there are some of the funding related issues that are already faced by the
nonprofit hospitals which is making harder for them to use the technological advancements like
the private hospitals. Thirdly, the outdated MRI and CT scan machines also have a direct effect
on the financial health of the nonprofit hospitals as the energy used by them are lot more. Hence,
a lot of electricity is consumed in the process and in this segment the nonprofit hospitals have to
indulge a lot of money in this segment. Lastly, it has been also observed that most of the
nonprofit hospitals are unable to cater the needs of the poor people who are suffering a lot as

HEALTHCARE FINANCE PROJECT 7
they are unable to provide the quality of services to these people that are also one of the
prominent reasons why the financial health of the nonprofit organization is suffering a lot
(Saxton, Kuo, & Ho, 2012)
B: Financial threats and opportunities a nonprofit hospital faces in the 21st century
Introduction
This particular report will be discussing about the possible threats and the financial
opportunities that a nonprofit hospital faces in the recent rimes. It is greatly observed and also
witnessed that the nonprofit hospitals plays an important role in benefiting the communities and
people across the globe. The main mission and the vision of nonprofit hospitals mainly revolve
around providing the societal benefits to a great extent. However, the nonprofit hospitals are
getting quite successful for raising funds that is acting as one of their main financial
opportunities. On the other hand, in the 21st century the nonprofit hospitals are also facing a lot
of possible threats that will be discussed briefly in this entire report.
Discussion
Challenges
There are a lot of challenges that the nonprofit hospitals are dealing with in the recent
times.
1.There are new insurance exchanges which are considered as one of the main parts of
entire nonprofit hospitals but the scheme has the potential downsides which becomes highly
threatening to the hospitals. There are many nonprofit hospitals who offers people for signing up

HEALTHCARE FINANCE PROJECT 8
the coverage health plan via the marketplace through which the high-deductible plans are
selected for shifting the healthcare cost more in case of the patient. Thereby the bad debts can be
increasd for the nonprofit hospitals (Saxton, Kuo, & Ho, 2012).
2. The nonprofit hospitals are suffering from the financial threats and challenges due to
shift in private sector. Thus, there may be cut back of services which are found less profitable,
even the services can be goes out from business. In the above-mentioned scenario it can be said
that the nonprofit hospital tends to reduce their community benefits at an alarming rate because
they suddenly stops giving the emergency psychiatric care. The financing part of the nonprofit
hospitals gets more challenging as they may not afford to offer the services even if they are
willing to serve as it is needed by the community. It has also been witnessed that most of the
nonprofit organizations do not tend to raise the prices. Also, they tend to respond in financial
crunching situation by cutting the services that are unprofitable in nature. In order to compensate
the losses those organizations use to return an impact in the communities for which they serve
for (Fingerhut & Abdou, 2017).
3. In recent times it has also been observed that most of the nonprofit hospitals are using
some of the security devices and it becomes one of the main concerned of discussion. The
nonprofit hospitals also have to face a lot of cyber threats in 21st century which in turn causes a
serious breaches in the security. Furthermore, along with the cyber threats nonprofit hospitals are
also facing the serious healthcare security threats for the employees who are working in such
hospitals, can play a vital part in breaching the security (Frith, 2018).
Opportunities
The opportunities, the nonprofit hospitals faces in 21st century are discussed as follows:

HEALTHCARE FINANCE PROJECT 9
1.) The problem of obesity is not new and this is growing day by day which is becoming a
serious concerned in the world now. Some private hospitals have found not to provide an
effective outcomes from this obesity issues. Whereas, the nonprofit hospitals have started
working on it and slowly they have found some special treatments like, community
benefit program to address the obesity issues in the soceity. In United States, obesity is
increasing at an alarming rate and in those areas the non profir hospitals works on to
provide an efficient community-based programmes to remove the ibesity issues
effectively.
2.) The nonprofit hospitals also have opportunity to improve the pain control. This
improvement will provide some of the economic benefits such as, the patients will be
discharged soon than they used to discharge in the earlier times. It thus improves the level
of patient’s satisfaction. It has been observed that the treatment costs for the chronic pain
has reduced along with the legal liability (Pennel, McLeroy, Burdine, & Matarrita-
Cascante, 2015).
3.) The nonprofit hospitals also have an opportunity in the 21st century is to reduce the pain
through the medication. As this method also provides the economic benefits such as,
ointment treatment. In this case of treatment, the complicacy has been reduced with a
great extent. The patient monitoring costs has been reduced. Together with this, the costs
related to the patient readmissions has been reduced to a great extent. As the legal liability
is also reduced, the satisfaction level for nonprofit hospitals has been improved which
provides a great success to those organizations (Bazzoli, Fareed, & Waters, 2014).

HEALTHCARE FINANCE PROJECT
10
C: Advantages and disadvantages for joining the healthcare organization, such as, regional
medical center, medical alliance or group of nursing home.
Introduction
This study is focussing on the advantage as well as the disadvantages for working in healthcare
organization like in any regional medical center or in medical alliance as well as the group of
nursing home. For this it is important to know the quality assrance from those organization.
Today, the healthcare associations have represented the collection of the professionals who are
found to work for a common goal for the purpose of promotion as well as for improving the
medical profession which will be associated with.
Discussion
Advantages
1. Networking: It has been noticed that there are some associations who are willing to
provide the unparalled networking opportunities and that allows the individuals for
connecting with their peers, mentors or with other industry leaders. As per the members
of the association, the person can held an unique position for attending the conventions,
seminars or the award dinners which will be related with the events like the professionals
in that field. That events are thus attended with britest minds together with this they have
hotbed ideas as well as the collaborative efforts. This type of advantages has shown
mainly within nursing homes or in regional medical centers.

HEALTHCARE FINANCE PROJECT
11
2. Education: This field of medicine includes the state of change with change of time. The
healthcare professionals mainly from medical alliance thus keep up the newest
developments which has the scientific breakthrough along with their associations’, like,
CME courses, seminars, other journals as well as some other opportunities of education,
such as the certification courses etc.
3. Jobs: It is always considered that healthcare associations, like nursing home, medical
centers or medical alliances in any country are the great places for finding the latest jobs
for the individuals.
4. Intrinsic Value: In many new superspeciality nusing homes, it has been found that the
authority is searching for new talents on behalf of the organisations for conducting the
annual meetings, legislative committes along with the workshops or the CME courses.
For receiving the membership benefits it is very needed to engage with the association
(Santomarco, 2015).
Disadvantages
1. Fees: It is observed that in most of the healthcare services, especially in some private
nursing homes, there is an urgent annual need of payment is required and sometimes it is
much higher like $100.
2. Time: There are significant differences between the private nursing home and the
regional centers which are under the Goverment. As in nursing home, there is one annual
meeting but in case of regional there is monthly meeting. Whatever the importance or the
duration of the meeting is, the meeting has to be attend. This become sometimes very

HEALTHCARE FINANCE PROJECT
12
painfuls as every person has own time. So, the individuals who associate with more
number of organisations they may face the meeting in weekly basis (Jackson, 2018).
3. In case of regional hospitals, there are some growing pressure day by day regarding the
cost cutting ways. It has been seen that there are some costeffective ways are searched for
to implement for handiling the resource management.
4. There are also some issue come regarding the quality of the heath system especially in
case of some nursing home. Some organisations thus take the downsizing strategy for
achieving the appropriate size, reconstruction or the adoption of technological advances,
decreasing the number of beds, outsourcing or modifications of clinical staffing or the
skill combination and so on.
Conclusion
The study revolved around the main matter that is possible issues and trends that are affecting the
financial success of the nonprofit hospitals. It has been noticed that the technological
advancement is one of the most prominent trends in the hospital industry in the recent year in
this situation the nonprofit hospitals are struggling a lot for including proper machineries for
their patients as it needs huge amount of money and in terms of funding they are lagging behind.
In second part of the study, the opportunities and the challenges that the nonprofit hospitals have
in the 21st century has been discussed. It has been witnessed more than the challenges the
nonprofit hospitals have opportunities in the 21st century. It can be said that if the nonprofit
hospitals can utilize the possible opportunities in the present time in an effective manner then

HEALTHCARE FINANCE PROJECT
13
they will be able to provide better service to the people and the community to a great extent. On
the other hand, the nonprofit hospitals also need to work effectively on their possible threats so
that the community will not be deprived from their services.
In the last not the least para of this study, there are a little discussion on the merits and demerits
of the HealthCare systems in today’s scenarios.
References
Au, M. H., Liang, K., Liu, J. K., Lu, R., & Ning, J. (2018). Privacy-preserving personal data
operation on mobile cloud—Chances and challenges over advanced persistent threat. .
Future Generation Computer Systems,, 337-349.
Bazzoli, G. J., Fareed, N., & Waters, T. M. (2014). Hospital financial performance in the recent
recession and implications for institutions that remain financially weak. Health Affairs,
739-745.
Brookhart, M. A., Stürmer, T., Glynn, R. J., Rassen, J., & Schneeweiss, S. (2010). Confounding
control in healthcare database research: challenges and potential approaches. . Medical
care, S114.
Cleverley, W. O. (2017). Essentials of health care finance. New York: Jones & Bartlett
Learning.

HEALTHCARE FINANCE PROJECT
14
Fingerhut, A. W., & Abdou, C. M. (2017). The role of healthcare stereotype threat and social
identity threat in LGB health disparities. . Journal of Social Issues., 493-507.
Frith, L. (2018). A solution to the challenges of markets in healthcare? Marketisation, Ethics and
Healthcare: Policy, Practice and Moral Formation., 67-307.
Jackson, M. (2018). Benefits & Disadvantages of Managed Health Care. Retrieved from
https://pocketsense.com/: https://pocketsense.com/benefits-disadvantages-managed-
health-care-9704.html
Pennel, C. L., McLeroy, K. R., Burdine, J. N., & Matarrita-Cascante, D. (2015). Nonprofit
hospitals’ approach to community health needs assessment. American journal of public
health, e103-e113.
Santomarco, M. (2015, 03 03). Four Benefits of Joining Your Professional Healthcare
Association. Retrieved from http://news.healthecareers.com:
http://news.healthecareers.com/2015/03/the-benefits-of-joining-your-professional-
healthcare-association/
Saxton, G. D., Kuo, J. S., & Ho, Y. C. (2012). The determinants of voluntary financial disclosure
by nonprofit organizations. . Nonprofit and Voluntary Sector Quarterly, 1051-1071.
Thakur, R., Hsu, S. H., & Fontenot, G. (2012). Innovation in healthcare: Issues and future trends.
Journal of Business Research, 562-569.