Individuals who do not have enough insurance coverage run the danger of experiencing financial hardship and having limited access to healthcare treatments. Businesses may see higher healthcare expenses and lower productivity as a result of this problem as workers miss work due to illness or seek expensive emergency care. In the absence of preventative treatment, the community may see a rise in healthcare costs, a decline in economic productivity, and the spread of infectious illnesses.
People who don’t have enough insurance may have a variety of financial hardships and restricted access to healthcare (Peng & Zhu, 2021). For example, not having insurance means paying for medical bills out of pocket, which can be expensive for people who need continuing care or have chronic illnesses. As a result, people may put off or neglect necessary medical care, which could later result in more serious health problems (Peng & Zhu, 2021).
The burden of providing healthcare services to uninsured people may fall mostly on organizations, which could lead to increased healthcare expenditures and possibly higher employee insurance premiums (Karpman et al., 2021). Reduced productivity also becomes a significant issue since uninsured workers are more likely to miss work due to illness or seek costly emergency treatment, which has a detrimental effect on organizational productivity.
The World Health Organization (WHO) highlights the unquestionable significance of the healthcare economic problem and the necessity of taking action to improve access to necessary healthcare services, lower prices, and increase productivity by offering reasonably priced healthcare insurance (WHO, 2019). Therefore, coordinated efforts are necessary to guarantee that everyone has access to reasonably priced healthcare coverage, regardless of social class or income.
Related Assessment:
NURS FPX 6008 Assessment 2 Needs Analysis for Change
A detailed evaluation of viability and a cost-benefit analysis are necessary in order to address the financial issue of easily available and reasonably priced health insurance. The feasibility of providing affordable health insurance is evaluated, taking into account the current political environment, economic conditions, and resource availability (Illinois Government, 2021). Despite being intended to provide access to healthcare insurance, the Affordable Care Act (ACA) offers a case study that shows how its implementation encountered political resistance and difficulties in several states (Campbell & Shore-Sheppard, 2020).
A significant upfront investment is required to establish cheap healthcare insurance, but there are long-term advantages as well, such as lower healthcare expenditures and better health outcomes (King, 2020). This is because of the cost-benefit analysis. Studies show the possibility for long-term cost reductions; the coverage provisions of the ACA reduced the annual cost of uncompensated care for uninsured patients by one-third (Karpman et al., 2021). Additionally, the Affordable Care Act strengthened the argument for more affordable healthcare options by promoting a rise in preventative care services.
Three viable tactics can be used to reduce the financial risks that healthcare companies face:
1. Improve Cost Management: By negotiating cheaper costs for medical services and supplies and by increasing the effectiveness of healthcare delivery, healthcare organizations can improve cost management. This can improve organizational sustainability and ease financial strain (Sturmberg & Bircher, 2019).
2. Diversify Your Revenue Streams: You can lessen your reliance on fee-for-service models and create a more stable financial foundation by looking at alternate revenue streams like grants or partnerships with other healthcare providers (Kosala & Heengama, 2019).
3. Put Risk Management Strategies into Practice: Organizations can more successfully manage financial risks by creating and putting into practice risk management strategies, which include backup plans for unforeseen circumstances like pandemics or natural disasters (Auditboard, 2021).
These suggested tactics are supported by academic sources and evidence-based research. For example, research published in the Journal of Healthcare Management and the Journal of Healthcare Finance supports the effectiveness of revenue diversification and cost management techniques in enhancing the sustainability and financial performance of healthcare organizations (Truong, 2022
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