Finance and Human Resources in Health care delivery

Finance and Human Resources in Health care delivery
Name:
Course:
Instructor:
Date:
Introduction
Even though the health care sector is not geared towards profit maximization, viability and financial growth of the sector are important aspects to improve quality of healthcare management. Thus, it is vital to invest in staff and equipment for organizations to get the best Return on Investments (ROI). However, the increasing financial burden of health care services continually put a strain on family income and results to inaccessibility of financial services (Cunningham, 2010). The 2008 / 2009 global recession exposed vulnerabilities in US healthcare system as rising unemployment led to concerns on the number of uninsured Americans who were exposed to high healthcare costs. This essay delves into the financial aspects of health care delivery, and implications of human resources in the health care industry.
Statement of the Issue to be Investigated 
This topic is important because provision of best care is related to the financial aspects of the health care delivery. The rise in health care expenditures is a cause for concern, with the expenditure being more than 17% of the US GDP in contrast to 1950 when healthcare expenditure accounted for 4.6% of the GDP (Fuchs, 2012).Financial features of health care delivery
There has been a decline in out of pockets payments over time, while that of third party payments has risen. Additionally, the federal government now plays a bigger role in health care expenditures. However, these payments and arrangements have exposed people to financial risk whereby health care contributions by employers are not part of taxable income. Equally, there is a broader and larger pool of people required to pay income tax, and though there has been spread in coverage through employer based insurance coverage, the payments through third payments have become more expensive over time (Fuchs, 2012). Health care expenditure increase has coincided with both Medicare and Medicaid, while improved R & D and better technology have also increased the variety of drugs available.
Rising health care cost
There are various reasons for the rise in health care spending, with treated diseases prevalence being a major reason for this trend (Thorpe, 2005). There has been a rise in treated diseases prevalence because of modified lifestyles with obesity being a major cause for the increase in the number of populations at risk of treated disease prevalence. For instance, obesity accounted for 27% in health care spending from1987 to 2002 (Thorpe, 2005). The rise in these diseases has in turn led to health complications and increased spending among adults in comparison to normal weight adults. Obesity has also been linked to the rise in the prevalence of chronic diseases, especially cardiovascular risk factors which are expensive to manage. Furthermore, the rise in treated diseases has led to deteriorating health conditions as people are less likely to live healthy lives.
There are more people treated for asymptomatic conditions because of changes in the threshold for treatment. These changes have necessitated the need to institute preventive measures for asymptomatic conditions especially those associated with cardio vascular complications. Treatment changes for asymptomatic conditions have led to increased scrutiny and clinical interventions to manage and reduce the impact of these conditions. In the case of hypertension there has been insistence on primary health care prevention with the aim of reducing hypertension, whereby the levels of blood pressures required have been reduced from 160/ 90 to 140/ 90 (mm/ Hg) (Thorpe, 2005). Similarly, the acceptable normal lipids levels are lower being a cholesterol level of 200 from 240 as has been the case for fasting glucose levels which have been reviewed downwards (Thorpe, 2005).
The demand for new technology and medical advances in the healthcare sector has led to increased health care spending. There is need for testing before new technology can completely be rolled out to patients, and at times there is demand for new treatments even when there is no evidence that such treatments are effective than those already in existence. Pharmacological innovations and treatment procedures have played a critical role in management of treated disease prevalence, with higher healthcare spending meant to improve health care treatment and reduce mortality risk. The innovations in treatments have are now applicable to a wider array of patients as there are more drug treatment options (Thorpe, 2005).
The growing health care financial burden in America increased rapidly in the period 2004-2006, from 16.4 % to 19.1 % (Cunningham, 2010). To analyze data on the impact of financial burden on health care on Americans, Cunningham relied on the 2001 to 2006 Medical Expenditure Panel Surveys. The surveys had information on health care expenditures in the period under review as well as health status and insurance health care coverage. Surprisingly, the growing financial burden on health care occurred when the economy was expanding at higher rates than between 2001 to 2004. However, taking into account the impact of inflation the family income was stagnant in the period but out of pockets premiums increased. The financial burden was particularly more intense among the privately insured people during 2001 to 2004 as a result of increase in premium payments.
Rising cost of healthcare and quality of services
The rising costs of health care coverage has a negative effect on American families who cannot afford to pay for medical services and are forced to cut down on other forms of budget expenditures. In many middle class households, health care cost is one of the main contributors to consumer spending on out of pocket expenditure and insurance premiums. Even though, most Americans are categorized as middle class, the growing threat of rising health care costs is likely to dampen the financial prospects of many families in the coming decades, if there are no reforms. As health care expenditure rises over time, there are increasingly high burdens faced by middle class house holds, as other categories of expenditure have risen at a slower pace. Health care financing faces numerous challenges as businesses and the private sector have limited resources to keep up with the demand of middle income family’s health financial coverage.
Even though, America has the highest health expenditure to share of the GDP, the country does not rank high in health care provision. The quality of service provided is not commensurate with expenditure because of wastage in the US health care system. Thus, to improve health care it is vital to eliminate waste and improve quality of care, and waste has occurred because of failure to coordinate care, inefficiency and over treatment. On the other hand, there is underuse of servi...