Finance and Budgeting
Discussion 3: Finance and Budgeting
Jeremy
Financing and Budgeting is a significant aspect when developing a new healthcare facility. When adding new facilities to already existing ones can cost the healthcare personnel millions. But if done correctly, the positives can outweigh this significant negative. For Golden Age Hospital, we would be servicing elderly patients ages 65 and up. GAH would be utilizing the Medicare program to receive funding for the patients’ treatment and use of our medical supplies. More specifically for Medicare which will help patients with the cost of certain doctors’ services, outpatient care, medical supplies, preventive services, inpatient hospital stays, care in a skilled nursing facility, hospice care, some home health care, prescription drugs, etc (Me.dicare, 2018). At Golden Age Hospital, mostly all of our patients will be using this program, which means that GAH will be receiving their financial payment through the public sector (i.e., The United States Government); henceforth, the Medicare Prospective Payment System will be used. The Medicare Prospective Payment System (PPS) is described as, “a method of reimbursement in which Medicare payment is made based on a predetermined, fixed amount. The payment amount for a particular service is derived based on the classification system of that service (for example, diagnosis-related groups for inpatient hospital services) (Centers for Medicare & Medicaid, 2018).”
References:
Medicare.gov (2018). What’s Medicare? Retrieved from: https://www.medicare.
Centers for Medicare & Medicaid. (2018). Prospective Payment System-General Information. U.S. Centers for Medicare & Medicaid Services. Retrieved from: https://www.cms.gov/
Discussion 3: Finance and Budgeting
Joy
Statement of Problem
Financing and budgeting issues affect Golden Age Hospital and the community clinic. Medicare Prospective Payment System is reimbursed by grants from the federal government for treatments offered. “Based on Medicare Prospective Payment System, the hospital is reimbursed by grants from the federal government for treatments by a predefined sum and not by the actual expenses performed for and on a particular patient” (“Finance,” 2018). A formula is used to determine payment amount for services. Elderly are covered under Medicare. Costs of running facility are covered by Medicare.
Background Information
Financing and Budgeting are tools, mechanisms utilized to effectively budget finances. Budgeting is a mechanism which includes managing funds available for spending. Finances has to do with money and the management of it. Concerning Medicare, it is a government sponsored Health Insurance Program. Medicare is for seniors over 65. The Medicare Prospective Payment System, bundled services and is reimbursed by Government health services offered.
Description of any Alternatives
Alternatives are available to the Medicare option. Alternatives include third-party health insurance providers and out-of-pocket self pay. Government regulation has passed legislation such as the Affordable Care Act, which gives the option to comparison shop for health insurance. Affordable Care Act offers affordable health insurance and helped to insure the uninsured, the poor, college students and the elderly. Alternatives to standard Finance and Budgeting is utilizing the expertise of an accountant. Spreadsheet can be utilized to organize accounts payable and accounts receivable listing credits and balances.
Major Conclusions
Modern society has mechanisms in place to help ensure efficiency concerning providing services that help to cover costs of healthcare services. Medicare has been effective at covering health services for the elderly. Prospective Payment System receives reimbursement from federal government. Mechanisms utilized by financial agents to accurately organize financial data within hospitals such as Golden Age Hospital and Community Clinic. Financial knowledge is efficient at organizing data and accurate data-keeping.
References
Finance and Budgeting. Retrieved on June 21, 2018 from https://tlc.trident.edu/
3
Elisabeth
The integration of the Golden Age Hospital within the Mission Viejo community will increase market value, the number of patients, and quality of care. The benefits of the Golden Age Hospital will impact the Southern California region amongst the geriatric population. With the addition of the facility and becoming fully operation expenses, revenue, costs, and affordability will impact all; such as, the area, the patient, and the government. For example, the actual cost of the facility and everything that entails of the Golden Age Hospital to be fully operational will be paid as a grant by the state. (Finance and Budgeting, 2018) This will benefit the Mission Viejo community in regards to giving geriatric patients the option for accessibility to the care that they actually need.
All geriatric patients that will be getting their healthcare services from the Golden Age Hospital are all 65 years and older. They will be covered by the Medicare Prospective Payment System. (Finance and Budgeting, 2018) In other words, the costs of certain services to geriatric patients will reach even; such as, the income from Medicare payments will pay all treatments, surgeries, and any other services provided to the patient based on a fixed price. The benefit that the Medicare Prospective Payment System has towards geriatric patients is that each treatment provided to the patient will be provided in a efficient manner due to the fixed price. This shows that the Golden Age Hospital will have to utilize resources above the standard level while prioritizing which geriatric patient will have longer stays in the hospital. (Liu, K., SC.D, & Manton, K. G., Ph.D., 2017) The Medicare Prospective Payment System will be utilized in a efficient process where patients are given the quality of care than quantity and providing the right service that one needs.
References:
Finance and Budgeting. (2018). Retrieved from https://tlc.trident.edu/
Liu, K., SC.D, & Manton, K. G., Ph.D. (2017, February 21). Effects of Medicare’s Hospital Prospective Payment System (PPS) on Disabled Medicare Beneficiaries: Final Report. Retrieved from https://aspe.hhs.gov/
Overview. (2018). Retrieved from https://www.cms.gov/
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