The Future of Health Care Financing and Nursing Leadership

The Future of Health Care Financing and Nursing Leadership

The Future of Health Care Financing and Nursing Leadership 150 150 Peter

The Future of Health Care Financing and Nursing Leadership

For this final assignment, adhering to APA format, please submit a written assignment, that addresses the following questions:
Why must nurse managers and executives be knowledgeable of current issues in the field of financial management in nursing?
What are the major current issues in financial management in nursing?
Based on this information, describe strategic priorities to address the major current financial management issues to improve quality and address population health needs.

Sample Paper

Why must nurse managers and executives be knowledgeable of current issues in the field of financial management in nursing?

In the contemporary healthcare environment, it is important for nurse managers and executives to be adequately knowledgeable about different current issues in the field of financial management. Acquiring knowledge in financial management allows nurse managers and executives to effectively manage unit or service lines that they are responsible for. Having adequate knowledge on different current issues in financial management also allows executives and managers to adequately understand the structure of the organization and how financial management is related to the structure of the organization (Bai et al., 2017). Adequate financial management t allows nurse managers and executives to effectively balance relationships between condensed financial resources and nursing. Remaining updated on current financial management issues also enables nurse managers to effectively understand issues relating to the cost quality and financing within healthcare fields and to be able to efficiently manage the shift from fee-for-service models of reimbursement to value-based care (Jones et al., 2019). Having sufficient knowledge in financial management, therefore, helps nurse managers to prioritize safety, patient outcomes, and satisfaction in healthcare facilities as the main areas that can boost the financial performance of a healthcare facility. Adequate financial management skills make it possible for nurse executives to utilize constrained financial budgets while at the same time trying to improve patient outcomes (Akinleye et al., 2019). By continuing to take on managerial and executive positions nurses require a sufficient knowledge base of financial management in order to succeed in their role. Having sufficient knowledge of financial management allows nurse managers and executives to not only better understand the business side of healthcare but also focus on improving the outcomes of patients by relying on knowledge of cost, quality, and financing issues. In the contemporary time, it has also become imperative for nurse managers and executives to be competent in financial management and to have sufficient skills so as to effectively manage the expenditure of the health care unit and also work effectively to contain costs in their departments. Having sufficient financial management skills helps nurse managers and executives to effectively manage their current healthcare situations (Fawcett, 2018).

What are the major current issues in financial management in nursing?

Presently the major current issues in financial management in nursing include the effective management of the transition to value-based healthcare delivery, the growing influence of consumers in their own healthcare, and the impact of new healthcare regulations and transformative innovation in healthcare (Wishnia & Goudge, 2020). One of the most important issues related to financial management in nursing in the present is the ability to manage the transition to value-based healthcare delivery services. Across the healthcare industry, healthcare facilities are transitioning from a fee-for-service-based healthcare delivery model to a value-based healthcare delivery model that focuses more on patient satisfaction and outcomes of patients as opposed to the volume of healthcare services provided to patients. Nurse Managers and executives are therefore currently involved in financial management and adoption of effective financial strategies across healthcare facilities that can help facilitate the transition from a fee-for-service model to a value-based healthcare delivery model (Wishnia & Goudge, 2020). Nurse Managers and executives can also play a significant role in the implementation of alternative payment models such as bundled-payment and accountable care organizations which can facilitate the movement from a fee-for-service model to a value-based healthcare delivery model (Akinleye et al., 2019).

The growing influence of consumers in the ownership and management of their healthcare is another significant current issue in financial management when it comes to nursing. Because health care costs have kept increasing in contemporary times healthcare consumers have therefore demanded more control over their health care experience including how costs are divided and determined (Bai et al., 2017). In the contemporary healthcare environment, nurse managers and executives need to rely on models that promote outcome-based payment so as to allow patients to be engaged in changing their health behavior in order to improve their health outcomes, enhance the accessibility of healthcare services to patients and avoid unnecessary utilization of healthcare resources (Bai et al., 2017).

Another major current issue in financial management in nursing is transformative innovation and the impact of new healthcare regulations. The contemporary times are therefore witnessing significant changes in the regulatory environment that affects the healthcare business management and provision of clinical care. Transformative innovations such as artificial intelligence telemedicine and other technologies have also presented innovative approaches in the control of health care costs (Jones et al., 2019). One of the main challenges of financial management in healthcare will therefore be to effectively understand how organizations can apply technical innovation and regulatory changes so as to enhance operational efficiencies and reduce costs. New Healthcare policies such as strengthening the Affordable Care Act are also impacting the adoption of value-based care models. On the other hand, the adoption of policies such as national patient matching systems that allows the tracking of patients across providers and enhance interoperability among healthcare providers are also having a significant impact on financial management in healthcare (Fawcett, 2018). On the other hand, policies that promote improved emergency preparedness through data reporting and aggregation are having a significant impact on financial management in nursing (Fawcett, 2018).

Based on this information, describe strategic priorities to address the major current financial management issues to improve quality and address population health needs.

Considering the major current issues in financial management in nursing there are different strategic priorities that can be adapted to address different financial management issues and to assist in the improvement of quality and addressing of population health needs These include dynamic budgeting, aggressive cost management, and telehealth and telework. Financial management in healthcare in contemporary times requires dynamic budgeting which includes the use of continuous forecasts related to revenue share in healthcare facilities (Fawcett, 2018). The continuous monitoring of changes to the employee-based and public contributions to health care costs and subsequent growth is also important to dynamic budgeting. On the other hand, addressing cost management is a significant strategic priority that can be considered in order to effectively manage the major current financial management issues in the healthcare industry. The significant advancement that has been witnessed in technology and data analytics makes it possible for financial managers in healthcare to effectively apply timelier updates on their financial calculations (Jones et al., 2019). Through the advancement in data analytics technology, healthcare facilities can therefore be able to predict variable costs more accurately and reduce fixed costs. Another possible result related to the address of more up-to-date data in healthcare financial management is the need for the formulation of new agreements with healthcare vendors and physicians that consider the potential decrease in traditional sources of revenues and higher expenses (Wishnia & Goudge, 2020).

Telehealth and telework are also important strategic priorities to address major current financial management issues in healthcare. Since the onset of the Covid-19 pandemic, a significant increase in the use of telehealth services in healthcare facilities has been witnessed. With a combination of increased use of telework, healthcare facilities have a chance to reduce staffing costs, clinic space, and other expenses and re-allocate finances to address population health needs and improving quality of care (Wishnia & Goudge, 2020).

 

References

Akinleye, D. D., McNutt, L. A., Lazariu, V., & McLaughlin, C. C. (2019). Correlation between hospital finances and quality and safety of patient care. PLOS ONE14(8), e0219124. https://doi.org/10.1371/journal.pone.0219124

Bai, Y., Gu, C., Chen, Q., Xiao, J., Liu, D., & Tang, S. (2017). The challenges that head nurses confront on financial management today: A qualitative study. International Journal of Nursing Sciences4(2), 122–127. https://doi.org/10.1016/j.ijnss.2017.03.007

Fawcett, P. J. (2018). Financial Management for Nurse Managers and Executives, 4th Edition. AORN Journal97(6), 759–760. https://doi.org/10.1016/j.aorn.2013.03.008

Jones, C., Finkler, S. A., Kovner, C.T., & Mose, J. (2019). Financial Management for Nurse

Managers and Executives (5th ed.). St. Louis, MO: Elsevier, Inc.

Wishnia, J., & Goudge, J. (2020). Impact of financial management centralisation in a health system under austerity: a qualitative study. BMJ Global Health5(10), e003524. https://doi.org/10.1136/bmjgh-2020-003524