Health care financing

  Explain and describe what performance improvement is and its importance for a sustained financial health of the healthcare organization. What role does strategic budgeting have in controlling costs? Additionally, how will the new requirement publish prices affect the hospitals, if at all? Please read the following article and discuss how patients might perceive price publishing A new rule requires hospitals to post prices online, and it could help you make better budgeting decisions in 75 words and 1 citation each reply to these two posts in a meaningful way, as well as trying to add new information to start a discussion post 1 Performance improvement is the process of finding out the cause of a performance issue in an organization and resolving the issue by implementing a different technique. Even though this a positive thing, it can come along with some challenges. This is because many struggle with coming up with a solution to trouble. Developing a solution that is going to improve everything and making sure it is a long term solution. Performance improvement is important in healthcare with financial because it helps to find the trouble before it gets out of hand. Then, the team has to find a solution before it causes harm to the organization. Making sure someone is on top of the finances is important in order to continue to make profit. If a problem occurs in this department is can be detrimental to the healthcare organization. Budget controlling compares costs, revenue and actual perfomance with the budget. If needed it can all be reviewed and correctly measured so that it can be applied. Strategic budgeting is used to create long term budgets that last longer than a year. This is used when trying to plan for the future of the business. Having a strong and precise strategic budget can make an organization very successful. It isn't concerned about detailed revenue or expense line items that are normally found in an annual budget. Instead it's broken down into small number lines to have greater focus on the overall goals that need to be achieved. Strategic budgeting is a way for organizations to control costs, find out how things should be spent and how much something should be. Having hospitals post prices is going to affect them a lot. They don't post prices for a reason because every person is charged differently depend on financial circumstance, type of insurance, and what procedures are going to be done. Prices for routine healthcare services are going to vary across the U.S. and even within a region. Price transparency will lower consumer health costs by increasing competition among providers and giving patients the option of “shopping” for the best price. Unlike before a patient just went to any provider without knowing the cost of the visit or procedure. The article talks about hospitals are going to have to put on their website standard charges that are shoppable, such as xrays, outpatient visits, laboratory tests, and so on. Then the second phase is going farther and letting patients know how much it's going to cost out-of-pocket. Having the knowledge of knowing the exact cost of hospital care beforehand is going to make easier for consumers to estimate their FAS budgets. Which is going to lead to quality care within their budget. This is going to be amazing for patients but not the healthcare companies.   post 2 Performance improvement is a strategy that falls under the larger umbrella of performance management. PI assists employees in achieving better performance and growth. Health care Managers typically use performance improvement plans (PIPs) and processes to mentor employees to reach the organization's standards and requirements. This process serves a dual purpose, to address both productivity and behavior. For organizations to excel, employees need to be well versed in the objectives and understand that excellence will depend on the patient experience, health, and cost. Strategic health care planning creates organizational objectives, sets goals for the company's future state, and plans to reach these objectives. Healthcare planning must also include government policy changes, technological advancements, and economic trends in healthcare. The Financial Health of an organization is the foundation for good patient experience as it can provide exceptional staff, a variety of specialties, educational resources, and preventative programs to name a few. Strategic planning to offer better options and care starts with understanding the organization's breakdown of revenue (inflow) and cost (outflow) and collaboration across all departments. I believe the Hospital Price Transparency rule that went into effect on January 1, 2021, will positively impact patients' understanding of healthcare costs. Hospitals will be required to post fees online and navigate patients in the understanding of cost. Healthcare costs are unknown for patients, and patients deserve to understand how to prepare and budget for unforeseen events.