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Hospital Trends in The Current Economic Environment Essay

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Hospital Trends
1. How is the current economic environment affecting hospitals?
According to the article, “The Economic Downturn and Its Impact on Hospitals”, the current economic environment is affecting hospitals and other heath care facilities in a number of ways. The most common issue relates to inability of the hospitals to obtain and secure relevant financing that enables health institutions to meet their daily obligations. Since most payments in hospitals lags behind the amount expected to deliver health care, most of the times hospitals are forced to borrow funds from financial institutions to meet their operating expenses. With this issue of economic downturn, borrowing funds from financial institutions has become very difficult, and the little loans obtained have become very expensive to repay (TREADWATCH, 2009).
Another effect include the problem of increased number of patients under the government Medicaid program, the uninsured, and the underinsured .The crisis made many people lose their jobs hence limiting the amount of money payable to medical insurance companies, which on the other hand reduce the amount payable to the hospitals. Another effect includes loss of jobs to both health specialists and low cadre staff, which has been attributed to increased uncertainty of when the current situation will improve (Jimmy, 2000). Many opponents of the recession claim that many health practitioners in the end might quit their medical practices rather than agree to receive reduced reimbursements from the government Medicare programs.

2. What changes in goals and strategy are hospitals likely to employ in the current environment?
Given the effects and seriousness of this situation, hospitals need to be very conv...


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...unity relates to the idea of health institutions engaging in other money generating projects.
Conclusion
After analyzing all the above issues about recession in health care sector, I am contented that health care reforms are very much needed and they require the support of the people because they are the ones’ who pay taxes and should be effectively addressed by providing them with good health services.







































Works Cited

Jimmy, K. (2000). ‘Health care reforms after Recession.’ American Psychiatric Association, 3(2), 23-65.

TREADWATCH. (2009). The Economic Downturn and Its Impact on Hospitals (pdf). Retrieved from http://www.aha.org/aha/research-and-trends/index.html

Primer, A. (2007). ‘Medicare.’ Journal of Health, 2(7), 12-27. Retrieved from


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