Financial Issues in Health Care

Financial Issues in Health care

University of Phoenix

July 26, 2010

Financial Issues in Health care

Quality health care is an expectation of the average American citizen. The topic of quality health care is the focus of many political debates. As the political debate intensifies, the cost of quality health care continues to increase. Although a solution for cutting the cost of health care is not yet available, citizens are experiencing the fall-out that comes with the rising costs. The cost of health care in the United States is 72% greater than the cost for the same health care services in Canada. The high cost of prescription drugs and pharmaceuticals continues to be an issue for the average American citizen. Americans spend an average of $1500 per year on prescription drugs and pharmaceuticals while Canadians spend an average of $396 per year. In an economy experiencing turmoil, quality health care seems to be unattainable for many American citizens. The author of this paper will explore several financial issues in the health care industry.

Financial Issues

The health care industry is a staple in American society. Many financial issues have had an impact on the health care industry in recent years. Some of the financial issues include Medicaid and Medicare reimbursement; cost of hiring and retaining quality staff; private insurance reimbursement and care for citizens who do not have insurance.

Medicaid and Medicare Reimbursement

Historically, Medicaid and Medicare reimbursement payments are usually slow. Health care organizations frequently have to wait on payment for services. The financial issue becomes a burden for the health care provider. The health care provider then passes the burden to patients who have the responsibility to pay for services. Part of the issue is that many health care providers process fraudulent claims with Medicaid and Medicare, causing a delay in processing legitimate claims. In the interim, the...