Increased autonomy in the hospital interns of the budget. These include decisions like what and how much to spend on staffing and drug purchases. Performance should be used in rewarding management team. This will encourage the team to make more sound judgments and implement better policies. Increased budget for drugs and any other medical supplies. When the budget is adjusted positively, the hospital will be at a position of buying more drugs, this will encourage quality care and utilization rate; in terms of the number of admissions.
At the long run, this decreases the total cost per admission. Changing Normal practices for specific admission cases. This is through physicians of different departments of the hospital. When this is put into practice, the length of stay will be reduced by more than 50%. The reduction of stay realizes a decrease in the cost. Level of competency should also be increased in terms of staffing ratios per bed, supporting technology, team work and services rendered by the organization are all determinants of the quality of services. An upgrading formula encourages changes and efficiency.
For instance, patients at ICU will tend to need more patients than patients at orthopedics. Maintenance of hospital equipments. Normally, maintenance of hospital equipments in majority of US hospitals today, maintenance is mainly focused of repairing hospital equipments that have already been confirmed as out of order. But it doesn’t take maintenance to prevent future damage seriously. If preventive measures are taken, this will reduce the cost of future spending. What should cost containment programs focus on? Maximizing available funds for budgets’ sake.
This can be done through four ways one is through Medicare maximization. A couple of states may be service providers but some of these funds are got through general funds. Such should be converted to become Medicare programs. This in return adds on revenue through increased federal funds. Switching from low match to high match categories is another way the government can gain by receiving enhanced reimbursement for services that are already provided. Government should also focus in inter-governmental transfers. This focuses on lending to less advantaged sectors of the economy by the sectors that are doing fine.
Containment programs should also focus on reconfiguring the long term Care delivery system. This encourages community and home cares for status since they are able to cut Medicare spending or also provide more effective and attractive services. This requires more focus on the long term demand for long term care services. Considering how expenditures for prescription drugs moved up, focus should be directed to states that cover outpatient prescription drugs under Medicare. They must cover necessary cost with the government to pay taxes for the product they purchase.
The state should also perform management benefits included for people with more drug costs. The state also focuses on adjusting reimbursement rates for specific services to containment strategy. Managing health care better: This can involve Primary Care Case Management (PCCM) or conventional managed care. People should work hand in hand with the state to improve the quality of a care given. In addition the federal government should also focus on expanding managed care. The government should encourage Movements like Medicare. Selective contrasting is the last form of focus that the federal government should consider.
The government can turn to selective contracting or let people be involved in competitive bidding in order to cut cost. (Kala 2002) What Should Be Done In Order To Reduce Cost Inefficiency Hospitals should not be let to run independently and if they have to, the government should run majority of the hospitals and the private sector be left to run a similar percentage to cut monopoly that gives entrepreneurs the right to increase hospital costs. “Like many businessmen of genius he learned that free competition was wasteful, monopoly efficient. And so he simply set about achieving that efficient monopoly” (Mario Puzzo 1920)
The government should introduce rules and regulations that manage the hospitality industry at large. If the federal government monitored the spending and introduced rule that doctors should follow they will have no reason to ignore. the general public too will know that they are obliged to do a particular task. For instance ignorance of the general public is encouraging exploitation because they are turning to insurance companies. Insurance companies on the other hand have realized that there is a big opportunity to maximize profits due to the linking of hospital costs.
If the general public decides to ignore insurance or have their terms and conditions stated first, then insurance companies will cut cost too. Government spending should be monitored. In cases where any particular government introduces a particular monetary policy, spending is automatically regulated. If the USA government introduced a fiscal or monetary policy, Different sectors of the economy can be taxed more in order to reduce the difference; for expansion and sales. An example is the drug companies and insurance companies.
Bibliography
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