THE ECONOMIC DOWNTURN AND ITS IMPACT ON HOSPITALS

The Economic Downturn and Its Impact on Hospitals

The Economic Downturn and Its Impact on Hospitals

How is the current economic environment affecting hospitals?

Environmental factors contributing to the bankruptcy are either political or economic. A political factors associated with bankruptcy in the hospital attended was mixed payer / reimbursement. Government payers such as Medicare and Medicaid are often major contributors to revenue of the hospital. Changes in reimbursement rates or eligibility criteria can negatively influence the margin of a hospital and the combination pays. Another factor is related to organizational management. Political mismanagement can cause problems in relationships with physicians. The use of bankruptcy as a financial strategy to facilitate the sale of hospitals is also highly political, especially if a for-profit company is in negotiations to acquire not-for-profit facilities. In theory, the cost of insurance against malpractice stems from the prosecution of a particular state, if this factor is political. Finally, external events resulting from planning activities and health status changes in regulation may affect the filing of a hospital.

What changes in goals and strategy are hospitals likely to employ in the current environment?

Environmental factors contribute to economic bankruptcy including financial mismanagement and general mix payer reimbursement issues, competition, lower the volume, and demographic changes. Allegations of fraud are also in the economic field due to fraud generally refers to financial mismanagement. Bankruptcy as a financial strategy is an economic factor as the reduction of debt to a hospital makes an organization more viable for sale, and the rates for insurance against malpractice is determined in part by the economic environment. Labor supply is a classic economic issue, and quality problems resulting from internal inefficiency also fall into this category. In summary, all the themes identified in this study can be found on ...