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Finance Environment Matrix
| The economic trend of the health care payment system | Driving Forces | Compliance and Ethical Issues |
| Issue One
Revenue Pressure Driving Healthcare Stakeholder Consolidation |
There is a shift towards healthcare economic risk which is driven by the increased aging population and behavioral induced chronic diseases. The healthcare operation margin is constantly narrowing with revenue challenges affecting the many healthcare institutions (John Santilli, 2020). | The healthcare facilities are started with the primary duty of providing healthcare solutions to the population. Changes in the market and new delivery inventions do meet the challenge of managing the healthcare system risk by increasing their focus on primary care, integrated models, and pay value compensation. It is there quite unethical to charge prices for healthcare services which essential regardless of the quality of the service. |
| Issue Two
Responding effectively to the economic dynamics of local markets. |
The healthcare organizations that have shifted to value-based models are being forced to contend with the reality of the immediate population economic situation. The real challenge is in reducing the healthcare cost, the concentration of market players, and having a physician aligning to the practice (White, 2020). | The ethical issue in question is the welfare consideration of the professional healthcare practitioners who will charge a little fee for their services. |
| Issue Three
Accessing Digital innovation and technological transformation. |
There has been a drastic change in the expansion of healthcare facilities to cater to the rising needs of the patient demand under the constant challenge of financial resources. There is a need to reduce cost while increasing the output but there is a restriction is set by the amount of capital available (Mosquera, 2020). | The ethical question is whether to commercialize healthcare facilities and allow them to source funds from investors. Investors will demand a return for their capital invested. This will in turn result to rise prices of healthcare services which is a need and right for everybody. Health care facilities should receive incentives to standardize the prices of their services (Mosquera, 2020). |
References
John Santilli, F., 2020. Key Strategic Trends That Impact Healthcare Decision-Making And Stakeholder Roles In The New Marketplace. [online] PubMed Central (PMC). Available at: <https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4415172/> [Accessed 23 September 2020].
Mosquera, M., 2020. 5 Challenges Facing Health Systems. [online] Healthcare Finance News. Available at: <https://www.healthcarefinancenews.com/news/5-challenges-facing-health-systems> [Accessed 23 September 2020].
White, J., 2020. Top Financial Challenges In Health Care. [online] Healthcarebusinesstech.com. Available at: <https://www.healthcarebusinesstech.com/financial-challenges/#:~:text=Between%20frequently%20changing%20laws%2C%20expansion,spend%20to%20improve%20patients’%20health.> [Accessed 23 September 2020].