Healthcare Principles in Business and Finance

Healthcare Principles in Business and Finance


Health care activities are one of the areas where governments spend significant part of their revenues for the purpose of improving the general outcome of health care services to its populations. Stakeholders at the hospitals and other health care institutions have the responsibility to ensure these funds and managed in an effective manner and the resources acquired, purchased or instituted in a health care facility has to be managed in an effective manner. In addition, employees need to be informed to be pragmatic in the manner in which they perform their tasks at reduced costs and efficiency (Cruess & Johnston, 2004). The idea of value-based purchasing can be effective in understanding the performance of various departments and stakeholders and also establishment of methods through which staffs can be educated, mobilized, communicated to, and monitored so that they use the resources in the health care facility in a reasonable and effective manner. Furthermore, following the passage of the Affordable Care Act in the United States, the health care system has been forced to develop mechanisms of providing health care at reduced costs. They have been required to demonstrate the competence of performing their duties at least cost (Fendrick & Chernew, 2006)). They must also demonstrate the care in the use of funds provided by the governments. Most health care facilities of choice have focused their services in managing tasks and reducing costs of performing businesses and enabling financial reimbursements. This paper illustrates the departments affected by health care activities and stakeholders who undertake various tasks that are funded by the government of the United States. It also illustrates the strategy of empowering, educating, and mobilizing stakeholders in different departments so that they can deliver quality health care services at least costs.


Main Departments

  1. Nursing

This is the department that provides nursing activities such as the provision of personal support that includes movement of patients from one location to another, providing them with care in the form of changing their clothes, attending to the sanitation in their living environments and nursing their wounds (Gapenski & Pink, 2007). The department also assists the patient in moving from the physician’s office and takes them back to the rest rooms. In addition, the department is also responsible for provision of care for patients, their children and listening to the needs of patients and keeping records of patients’ physical conditions. The department cooperates with the physician department for the purpose of facilitating the cure for the illness from which a patient is suffering.

  1. Clinical Support

This is the department that arranges for clinical services provided to patients who have been admitted to the facility. They organize the diagnosis procedures and provide the results to the physician so that the health status of the patient can be understood (Isetts et al. 2008). The department also plays a role in establishing the physical characteristics and challenges faced by the patient so that mediation action can be taken.

  1. Case Management

This is the department that performs the role of managing cases in a health institution. It is responsible for establishing the cause of a particular difficulty faced by the patient. it also establishes the injuries sustained by a patient and determines the legal procedures to be followed in case of an accident to a patient and the person responsible for the management of the illness that is affecting the patient (Johnson, Leenders & Flynn, 2011). The department also keeps initial records of the patient immediately after admission so that the case can be examined and casualty records can be referred for the purposes of establishing the areas of sickness that need to be addressed.

  1. Supply Chain

This is the department that serves the function of providing various products, equipment, drugs and facilities needed to undertake the activities at the hospital. The supply chain department ensures there is an update in these products and any shortages are addressed by restocking (Kavanagh et al. 2012). The activities of the supply chain are facilitated by other departments such as the finance department that provides funds used to purchase the products supplied.

  1. Decision Support

This is the department that serves the purpose of provision of supports to various departments in terms of professional advice to the departments. For instance, it provides a guide on the manner in which particular priorities need to be made in the treatment of patients, arrangement of order of activities at the institution and establishing the referral procedure to a higher level health facility (Rosenthal et al. 2007). The decision support department also provides advice on whether to recruit additional nursing staff into the institution or expand the facilities.

  1. Medical Staff Office

This is the department composed of nurses, physicians and pharmacists. It also includes first aid professionals within the health facility. The office establishes the roles that each professional needs to undertake and determines whether more professionals need to be employed to serve the institution (Trisolini et al. 2011). The department also advocates for the rights of the professionals in terms of remuneration and better working environments. Another function of the office is to determine the hierarchy of leadership in a facility in the reporting and management of patients.


  1. Board Members

These are members of bodies such as shareholders of the health care facility. For instance, it can include the association of people who have shares in the institution (Cruess & Johnston, 2004). Their role is to determine the areas of investment in the facility such as whether to expand the services provided and the amount of funds needed to improve the performance of the institution.

  1. Senior Leadership Team

These are employees who lead various departments such as nursing departments, pharmacy departments, first aid departments and physicians departments. Each team leader performs the role of organizing members in the methods in which they need to perform their duties so that the goals of the organization are achieved )Fendrick & Chernew, 2006). The team leader ensures the challenges experienced by the team if forwarded to the board and an action is taken to address them. In addition, the senior leaders ensure they are provided with facilities and equipment that enable members perform their duties in an effective manner.

  1. Staff

These are trained professionals involved in the provision of a range of services to patients based on their areas of specialization. It is composed of physicians, nurses, diagnostic professionals and pharmacists. Each staff is responsible for discharging of his or her duties according to the needs of the assignment and professional responsibilities in the institution (Gapenski & Pink, 2007). The professionals in the institution are required to use the facilities in the institution in a manner that promotes the recovery of the patient as well as enabling them undertake their professional duties according to expectations of the positions.

  1. Patients and their Families

These are the beneficiaries of services offered by the health care facility. Patients are provided with various forms of support such as nursing support, diagnosis and establishment of the illness from which they are suffering (Isetts et al. 2008). They are also provided with support in terms of the medication by the pharmacy department of an institution. It is the responsibility of the hospital to address the needs of patients by improving the time take to cure a certain illness and enable the patients recuperates from the illnesses they experience.

How Stakeholders and Departments will be Managed to Reduce Costs and Increase Outcomes

In order to manage the departments and enhance the use of resources while reducing costs of medical tasks, the heads of various departments will be educated on how to use facilities of then hospital with care to reduce breakage of equipment. They will also be educated to maintain the facilities in good working condition and use them for the purpose for which they were bought (Johnson, Leenders & Flynn, 2011). The employees in various departments will also be mobilized to use the facilities in an effective manner so that output is increased and the costs of performing tasks are reduced. In case of breakage of facilities, employees in various departments will be educated to follow the right procedures in reporting them so that action can be taken to repair them or seek a replacement for them (Kavanagh et al. 2012). Departments such as the finance department will be educated to create budgets that address the most important needs of the health care facility. it will also involve educating the supply chain department to purchases products that are of most important to the health care facility and ignore those that are not.

In addition, stakeholders will be provided with education and mobilization so that they can minimize costs and improve the delivery of health services in the institution. For instance, pharmacists will be educated to handle drugs with care so that they can minimize wastages. In addition, the provision of education and mobilization will be provided to the physicians so that they can exercise care in the use of equipment (Rosenthal et al. 2007). Consequently, it will be possible to reduce breakage and enhance patient recovery. The board will be educated to develop the structure of investments that address the most important needs of the institutions such as those that address the needs of patients. Lastly, patients will be educated and mobilized to exercise care in the use of facilities such as beds and other equipment in the institution to prevent losses and breakage (Trisolini et al. 2011). All these measures will contribute to the reduction in cost of provision of health care services and enhancement of patient recovery.

It is estimated that the timeline in which all these educational and mobilization activities will take a duration of three years to implement in the institution.


This paper illustrates the role of various stakeholders involved in the discharge of duties of a health care organization based on their areas of specialization. In addition, it illustrates the functions of various departments in a health care organization. It is found that if value-based purchasing is done for products and services in the organization, it is possible to reduce the costs of medical funds provided by the government. The strategies of education, mobilization and monitoring the stakeholders in the institution will also be effective in the use of resources and preventing the need to replace those that have broken down.


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