Strategic Decision Making in Health Issue 2022

Strategic
decision making
in health

Strategic decision making in health 1
The financial issues have been identified as a health management problem. A major financial
issue faced by health management is providing healthcare rates irrespective of the increasing
costs. The costs are rising because of the augmented costs in the pharmaceuticals, insurance
rewards and healthcare outlay. The medications are under the public inspection for
continuously increasing prices for the vital drugs. The Centres for Medicare & Medicaid
Services have come in the notice for increase in the drug expenditure to $328.6 billion in
2016.the advancement in the healthcare also enables for a greater old populace and the
number of persons over the age of sixty are predictable to raise as many as 110 million or
27.4% of the total populace by 2025.
The persons over the age of sixty necessitate enhanced usage of healthcare under the
restricted budget limitations. Add on, healthcare spending is expected to raise 1% point
sooner than the GDP (Gross Domestic Product) per year till 2026. The situation of the
financial issues in health management problem can be analyzed through the framework given
below:
Human resource (HR): It is significant and useful to discover the influence of HR in health
care organizations. The certain health care alteration procedure differs by nation out of which
some tendencies can be recognized. Some of the tendencies comprise equity, competence and
quality objects. There are several resource ingenuities have been engaged in effort to enhance
efficacy. The services are outsourced to transform fixed labor expenses into the adjustable
costs as a resource for enhancing proficiency (Stewart, 2018). The examples of the measures
hired are constricting out, internal contracting and performance contracts. The financial
healthcare management issues to be analyzed in the human resource framework are handling
payroll, processing insurance claims, patient data entry, leveraging medical coding services,
assigning repayment, medical publicizing and denial management (Shah, Corso, Sotnikov &
Leep, 2019). For some people the payment for services condensed can be deferred over the
extended periods. Allocating with such inner cost contemplations for the health proceeds
cycle management and healthcare accounts revivable can undermine from concentration on
the value-focused persistent care. The difficulty faced here is intricacy of patient billing and it
cannot be easily understood by several patients. On the other side, human resource initiatives
tail to develop the quality of services and patient’s satisfaction. The healthcare normally can
be described in dual conducts, technical superiority, and sociocultural superiority. The
technical quality is about the inspiration that health services can have on the health
circumstances of the populace. Whereas sociocultural quality evaluates the degree of

Strategic decision making in health 2
adequacy of services and the capability to please patient’s anticipations. The HR
professionals also face financial issues with the effort to offer high-quality health care to the
citizens. Some of the issues comprise budgets, absence rates, lack of resemblance between
several stakeholders’ values, low optimism of health workers and high rates of turnover
(Senier, Lee & Nicoll, 2017).
The part of the HR in health care management is to evaluate and plan financial efficiency and
inclusive operations of healthcare concerns. The human resource enables the organizations to
plan for the forthcoming. For instance, if a hospital assesses emergency room proceeds and
determines that they are dropping patients to the adjacent hospital with more space. In
response to this, it can be decided to plan for the expansion of the emergency room. The
fiscal team has a hierarchy in the health care management organizations but effort is taken
from all the executives at all the stages when it comes to take decision of great investments in
the trade (Wei, 2017). The long term investment verdicts investigate the execution plans and
govern how the investment can distress to the impending as in finance for the better or worse.
The financial team in the hospital looks at the charge of the emergency room development
and latent proceeds upsurges and agree if it would be a decent outlay. The HR team raises
funds for the expenditure or investment to be made. It can comprise things such as grants,
loans, fundraising or making use of the internal funds. The HR subdivision when it comes to
the financial issues then looks at the cost and benefit of the outlay and the type of debt which
can take place (Noe, Hollenbeck, Gerhart, & Wright, 2017). The senior managers in the
health care organizations make the decisive call on the financing. For instance, in the case of
the emergency room, the financial management team can convey someone to define how
much a renewal can cost along with the time consumed. The senior managers in the health
care organizations are entitled to make decisive call on financing. For instance, in the case of
the emergency room, the HR team will bring somebody to define how much a makeover can
cost and how lengthy it will take. The HR team can decide to make use of the inner funds and
then take minor loans to meet the rest of the expenditures. The long term speculation is
expected to fetch more proceeds which help health care management organizations to pack
back the loan. When the financial issues in the health care management organizations are
properly managed then it assists in offering high quality of health (Neumann, 2017). It also
fosters a proactive attitude among the HR policymakers and managers.
Structural: The financial issues as a part of health management problem concerns the
structure in the form of managing investment in the capital-constrained environment. The