Analyzing Innovation and Financial Performance in Healthcare

This essay examines the impact of innovation on financial performance within the healthcare sector, focusing on Saudi Arabian institutions like King Fahad Hospital. It highlights how modern technologies, such as big data and electronic medical records, enhance cost-efficiency, improve patient care, and drive financial success. The essay references an article from Siemens Healthineers, emphasizing the role of high-performance technologies in accurate patient assessments and efficient diagnostics. The author argues that Saudi Arabian healthcare institutions are increasingly embracing innovation in line with the Kingdom’s Vision 2030 healthcare goals, motivated by an aging population and the rise of chronic diseases. These innovations, supported by research initiatives, ultimately lead to improved operational efficiency and better financial outcomes for healthcare organizations.

Running head: INNOVATION IN HEALTH 1
Innovation in Health Care
Professor’s Name
Institution Affiliation
Date

INNOVATION IN HEALTHCARE 2
Innovation in Health Care
Innovation is the use of modern technologies in solving social, and economic issues.
Financial analysts have in many scenarios highlighted innovation as a key consideration that
firms should adopt to boost service delivery and financial performance. The article, “A closer
look at financial performance in healthcare” published on “Siemens Healthineers “website on
23rd of March 2016 highlights the importance of innovation in boosting financial performance in
healthcare. The article appreciates that high performance technologies that accurately assess
patient’s conditions promote cost-efficiency in healthcare. Big data technologies are also useful
in running efficient diagnostics of patients (Siemens Healthineers, 2016). Medical centers can
also manage their costs more accurately and hence enhancing profitability within the facility.
Innovation has had a significant impact on operations of King Fahad hospital among
many other Saudi Arabian health facilities. Innovation has created a competitive advantage in
favor of the facility. This is evidenced by the growth in the number of patients visiting the
hospital especially those that need specialized treatment from ailments such as cancer,
hypertension, and major surgeries. The implementation of data driven healthcare in the
organization has promoted effective use of historical and current data in offering specialized
treatment to individuals. Also, innovative management practices has promoted patient waiting
time, efficiency in diagnosis and greater customer satisfaction (Alaa, 2018). These improvements
have jointly lead to better financial performance in the healthcare organization.
In my opinion, the current Saudi Arabian healthcare institutions encourage innovation.
Most institutions are keen at modernizing their healthcare systems in line with the Kingdom’s
vision 2030 health care goals. These innovative processes are mainly introduction of IT in
various sections of the facilities. King Fahad hospital and many other hospitals in the country

INNOVATION IN HEALTHCARE 3
have installed electronic medical records and modern diagnostic equipment. These technologies
even though costly, boost the financial performance of the organizations in the long run. The
hospital supports innovation by supporting research through King Fahad Medical City tasked
with enhancing research and innovation aimed at improving patient care and health systems.
These innovations are motivated by increased aging population, rising life expectancy, and
increased occurrence of chronic diseases such as hypertension, and heart related diseases.
Innovative culture especially in private medical institutions is also motivated by the need to
enhance efficiency in operations that resultantly lead to higher financial performance.

INNOVATION IN HEALTHCARE 4
References
Alaa, A. (2018, September 6). Kingdom of Saudi Arabia Vision 2030 represents a structural
shift in the Saudi healthcare sector. Retrieved October 1, 2018, from Cerner:
https://www.cerner.com/ae/en/blog/ksa-vision-2030-represents-shift-in-saudi-healthcare
Siemens Healthineers. (2016, March 23). A Closer Look at Financial Performance in
Healthcare. Retrieved October 1, 2018, from Siemens Healthineers:
https://www.healthcare.siemens.com.sa/magazine/mso-financial-performance.html