Question.3381 - 1. What are some factors that have contributed to healthcare evolving into a business model? 2. After reviewing the leadership and management styles, which leadership style can empower the healthcare organization we have today? Explain your answer.
Answer Below:
After assessing the US healthcare system overview, some of the factors that contribute to the healthcare's business model are dynamic fluctuations in the cost due to increasing population, U.S. stands 3rd behind China and India but spending around $3.5 trillion for healthcare (roughly 17% of it's GDP) in 2018, the cost is directly proportional to the rise in population with increased medical treatment costs, adaption to newer technologies to minimize human errors and prescription drugs making it expensive for stakeholders, pushing the nation to adopt to cost-containment to sustain a balance between efficiency of cost management and quality in healthcare system ("US Healthcare System Overview-Background," n.d.). Secondly, considering the insurance structure, private insurance prevails in the healthcare sector, possessing the authority and control over negotiating rates with the providers. While public insurance falls short when compared to private sectors, but covers all ages ranging from below 18 years of children by CHIP to people and Medicare provides healthcare coverage for those ages 65 years and older despite their income or medical history ("US Healthcare System Overview-Background," n.d.). Thirdly, the tussle in the governmental regulations and change in political powers, nonetheless, the Department of Health and Human Services owns the authority for provision of medication, medical social services and public healthcare service at national level and it is also a part of federal structure to serve other oversight agency, while in the federal healthcare laws are amended by the congress ("US Healthcare System Overview-Background," n.d.). One example can me drawn from ISPOR, wherein changes were brought to the afforadability and availability of the coverage under the Patient Protection and Affordable Act to have increased flow insured Americans, with an intent to improve the overall healthcare ("US Healthcare System Overview-Background," n.d.). Other noticeable factors include dynamic shift in the technical advancement, creating a tension between the desire for innovation and the need to control the costs, increased aging population will put immense pressure on healthcare system eventually. Note: there is a need for a blend of varied leadership style within the healthcare boundaries, some of the below discussed style should be mixed depending on the working environment. With this understanding, some of the empowering leadership styles that can aid healthcare would be: transformational style - that emphasizes on sustaining an environment that motivates the stakeholders to achieve a shared objective by setting a positive workspace, that encourages one to be open-minded. Secondly, servant leadership - wherein the focus is directed towards sustaining a balance between addressing the concerns of the employees and organizations objectives, the notion is to put the internal stakeholders at the top of priority. Democratic leadership - tends to emphasize on utilitarian ethical as the core basis, although this leadership works on shared decision making, it will a foster a sense of team engagement, to implement or decide on what benefits the most stakeholder, but also there is a possibility it could marginalize a smaller section of people who has difference in opionion considering the decision made. References US Healthcare System Overview-Background. (n.d.). ISPOR - Improving Healthcare Decisions. https://www.ispor.org/heor-resources/more-heor-resources/us-healthcare-system-overview/us-healthcare-system-overview-background-page-3More Articles From Nursing
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